The June 2022 SSDI payment increase explained

In June 2022, Social Security Disability Insurance (SSDI) payments rose by 5.9 percent — the largest cost-of-living adjustment (COLA) since 1982. This increase took effect with the June payment, which most recipients received on the third Wednesday of the month. The raise was tied to inflation measured between the third quarter of 2020 and the third quarter of 2021, and it affected every SSDI beneficiary automatically, with no action required on your part.

The 5.9 percent figure was announced in October 2021 for the 2022 benefit year. For someone receiving $1,200 per month in May 2022, the June payment would have been approximately $1,271. The exact amount you received depended on your individual benefit calculation, which is based on your earnings history and the age at which you became disabled.

Key Takeaways

  • The June 2022 COLA of 5.9 percent was the largest annual increase since 1982 and applied to all SSDI beneficiaries automatically.
  • Your new payment amount appeared in your June 2022 check or direct deposit; Social Security sent a notice in the mail explaining the increase.
  • The higher payment amount carried forward to all subsequent months unless your circumstances changed or you returned to work.
  • If you were working and subject to the Substantial Gainful Activity (SGA) limit, the higher payment did not change how your work was counted against your benefits.
  • Medicare premiums for SSDI beneficiaries also changed in 2022, and some of the COLA increase may have been offset by higher Part B premiums.

How the June 2022 increase affected your monthly payment

The 5.9 percent increase was applied uniformly to all SSDI beneficiaries, meaning everyone's benefit went up by the same percentage. If you received $2,000 per month in May 2022, your June payment was approximately $2,118. The Social Security Administration calculated the new amount automatically and did not require you to report anything or take any steps.

You should have received a notice in the mail — usually called a "Notice of Benefit Amount" — explaining the new payment amount and the reason for the increase. If you did not receive this notice, you could view your payment information by creating an account on ssa.gov or by calling Social Security directly at 1-800-772-1213.

Why the COLA was so large in 2022

The 5.9 percent COLA reflected rapid inflation in the U.S. economy during 2021. The Social Security Administration calculates the annual COLA by comparing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year to the third quarter of the current year. In 2022, inflation had risen significantly due to supply chain disruptions, increased demand for goods and services, and other economic factors.

This was the first time since 1982 that the COLA exceeded 5 percent. For context, the 2021 COLA had been only 1.3 percent, and the 2020 COLA was 1.6 percent. The 2022 increase was a substantial jump that reflected the real cost pressures beneficiaries were facing.

How the increase interacted with Medicare premiums

While your SSDI payment increased by 5.9 percent in June 2022, your Medicare Part B premium also increased that year. For most beneficiaries, the Part B premium was deducted directly from the SSDI payment. In 2022, the standard Part B premium was $170.10 per month, up from $148.50 in 2021 — an increase of about $21.60 per month.

This meant that although your gross SSDI payment rose, some of that increase went toward the higher Medicare premium. If you were enrolled in Medicare Part D (prescription drug coverage) or a Medicare Advantage plan, you may have faced additional premium increases as well. The net increase to your take-home payment depended on your specific Medicare coverage.

There is a rule called the "hold harmless" provision that protects most beneficiaries: your Part B premium cannot increase by more than the amount of your COLA increase. However, this rule does not explore to people who are new to Medicare or who did not have Part B coverage in the previous year.

Impact on work incentives and SGA limits

If you were working while receiving SSDI, the June 2022 payment increase did not change how your earnings were counted. The Substantial Gainful Activity (SGA) limit — the monthly earnings threshold above which Social Security considers you to be working at a substantial level — remained at $1,350 for non-blind beneficiaries and $2,260 for blind beneficiaries in 2022. These limits are set separately from the COLA and are adjusted only once per year in January.

The higher SSDI payment also did not affect the Student Earned Income Exclusion (SEIE), which allows students under age 22 to exclude up to $2,170 per month in earnings (in 2022) when determining whether they are working at a substantial level. Work incentives like the Plan to Achieve Self-Support (PASS) and Impairment Related Work Expenses (IRWE) also remained unchanged.

How the increase affected family benefits and representative payees

If you were a parent or family member receiving benefits on your SSDI record — as an auxiliary beneficiary — your payment also increased by 5.9 percent in June 2022. This applied to spouses, ex-spouses, and children of SSDI beneficiaries. The family maximum benefit, which caps the total amount all family members can receive based on one worker's record, also adjusted proportionally.

If you were a representative payee managing benefits for someone else, the higher payment amount was reflected in the account you managed. Representative payees are responsible for using the benefits for the beneficiary's current maintenance and needs, and the increased payment gave you more resources to do so. Representative payees must file an annual accounting with Social Security if they manage more than $5,000 in annual benefits.

Reporting the increase on your taxes

The June 2022 SSDI increase affected your 2022 tax situation. Social Security sends a Form SSA-1099 in January of the following year showing the total SSDI benefits you received during the tax year. If you file taxes, you may owe federal income tax on a portion of your SSDI benefits, depending on your combined income (SSDI plus other income sources).

The higher payment amount in June through December 2022 increased your total SSDI income for the year, which may have pushed you into a higher tax bracket or made more of your benefits subject to taxation. If you typically have taxes withheld from your SSDI payment, you could request a change to your withholding by completing Form W-4V and submitting it to Social Security.

Frequently Asked Questions

Did I have to do anything to receive the June 2022 increase?

No. The COLA increase was applied automatically to all SSDI beneficiaries. You did not need to report anything, submit paperwork, or contact Social Security. The new amount straightforward appeared in your June payment.

What if I did not see the full 5.9 percent increase in my payment?

The most common reason is that your Medicare Part B premium increased at the same time. If Part B was deducted from your payment, the net increase to your take-home amount was less than 5.9 percent. You can verify your gross payment amount by checking your benefit notice or logging into your Social Security account online.

Does the June 2022 increase affect my Medicaid coverage?

It may. Some states use your SSDI payment amount to determine Medicaid may be able to access. A higher payment could affect your may be able to access or the amount you must pay toward medical expenses. Contact your state Medicaid office to find out whether the increase changed your coverage status.

Will I receive another COLA increase in 2023?

Yes, but the amount varies each year based on inflation. The 2023 COLA was 8.7 percent, which was even larger than 2022. The 2024 COLA was 3.2 percent. You can find the current year's COLA on the Social Security website or in your annual benefit notice.