What August 2024 brought to Social Security

Social Security made several changes in August 2024 that affect how much money you receive, how you report your work, and what paperwork you need to keep. The most visible change was the cost-of-living adjustment (COLA) that raised monthly payments. Other changes involved how the program counts your earnings if you work while receiving benefits, and updates to the documents Social Security accepts to prove your identity.

These changes happen on a set schedule each year. Some are automatic — like the COLA, which adjusts for inflation. Others are policy changes Social Security announces in advance. Understanding what changed and whether it affects you takes a few minutes, and knowing the details can prevent confusion when your payment arrives or when you contact Social Security.

Key Takeaways

  • Social Security raised monthly payments in August 2024 through a cost-of-living adjustment, though the exact percentage varies based on when you started receiving benefits.
  • The earnings limit for people under full retirement age who work changed, meaning you lose less money in benefits if you earn above that threshold.
  • Social Security now accepts additional forms of identity documents, including some state-issued ID cards that were not previously accepted.
  • If you work while receiving benefits before reaching full retirement age, you must still report your earnings to Social Security, even though the penalty for earning above the limit is smaller.

The August 2024 payment increase and how much you get

In August 2024, Social Security raised all monthly payments by a percentage set by the annual cost-of-living adjustment. This adjustment is calculated each October based on inflation data from the previous months, and the new amount takes effect in January. However, the August payment you receive reflects any adjustments that were announced in the previous year's COLA.

The amount you receive depends on when you started taking benefits. If you claimed at your full retirement age, your payment went up by the full COLA percentage. If you claimed early (before full retirement age), your payment increased by the same percentage, but your base amount is lower because you chose to start early. If you delayed claiming past full retirement age, your payment is higher than someone who claimed at full retirement age, and it also increased by the COLA percentage.

Your payment also depends on your work history. Social Security calculates your benefit based on your highest 35 years of earnings. If you worked more years after you started receiving benefits, Social Security recalculates your payment once per year to include those new earnings. This recalculation happens automatically in August or September, so you may see a small increase beyond the COLA if you continued working.

Changes to the earnings limit if you work while receiving benefits

If you receive Social Security and work before reaching your full retirement age, Social Security reduces your monthly payment if you earn above a certain amount. In August 2024, this earnings limit changed. The new limit means you keep more of your benefits if you earn above it, because Social Security deducts less money from your payment.

Specifically, Social Security deducts one dollar from your benefits for every two dollars you earn above the limit. This is called the earnings test. The limit applies only to the months before you reach full retirement age. Once you reach full retirement age, you can earn any amount without losing benefits.

You must report your earnings to Social Security even if you earn below the limit. You can report online through your Social Security account, by phone, or by mail. If you do not report and Social Security discovers you earned more than you said, you may owe back benefits, and Social Security may reduce future payments to recover the overpayment.

New identity documents Social Security now accepts

In August 2024, Social Security expanded the list of documents it accepts to prove your identity when you visit an office or conduct business in person. The program now accepts certain state-issued ID cards that were previously not on the approved list, including some enhanced driver's licenses and state ID cards with security features.

You still need to bring an original document or a certified copy — a photocopy is not enough. Social Security also still requires a document that proves your Social Security number, such as a Social Security card, W-2 form, or tax return. If you do not have these documents, you can bring other papers that show your name and date of birth, and Social Security staff can help you figure out what else you need.

These changes make it easier to prove who you are if your driver's license has expired or if you prefer to use a state ID card instead. If you are planning to visit a Social Security office, you can check the full list of accepted documents on the Social Security website before you go, or call your local office to ask what documents they will accept.

How to check if the August changes affect your payment

The easiest way to see if your payment changed is to log into your Social Security account online. You can create an account at ssa.gov if you do not have one. Once you log in, you can see your payment history and the amount you are scheduled to receive each month. If the amount is different from what you received in July, the change will show there.

You can also call Social Security at 1-800-772-1213 to ask about your payment. Have your Social Security number ready. If you call, Social Security staff can tell you whether the change is from the COLA, a recalculation based on new earnings, or something else.

If you work and your earnings changed, you may see a different payment amount in August or September because Social Security recalculates benefits once per year. This is normal and expected. If you see a payment that seems wrong, contact Social Security to ask why it changed.

Reporting changes to your situation

If something in your life changed — you started working, stopped working, got married, or moved — you should report it to Social Security. Some changes affect your payment, and some do not, but Social Security needs to know so it can keep your record accurate.

You can report changes online through your Social Security account, by phone at 1-800-772-1213, or by visiting a local Social Security office. The most common changes people report are starting or stopping work, changes in address, and changes in marital status. If you are not sure whether you need to report something, call and ask — Social Security staff can tell you.

Frequently Asked Questions

Does the August payment increase happen every year?

The cost-of-living adjustment happens every year, but the percentage varies. If there is no inflation or if inflation is very low, the COLA can be zero, meaning no increase. The COLA is calculated based on inflation data and is announced in October for the following year.

If I work and earn above the limit, do I lose all my benefits?

No. Social Security deducts one dollar for every two dollars you earn above the limit. So if the limit is $23,400 and you earn $25,400, you are $2,000 over the limit, and Social Security deducts $1,000 from your annual benefits. You still receive some payment.

What if I do not report my earnings to Social Security?

Social Security may discover the unreported earnings through tax records or other sources. If you owe benefits back, Social Security will reduce your future payments to recover the money. It is simpler to report earnings when you are supposed to.

Can I use an expired driver's license to prove my identity at a Social Security office?

An expired driver's license is usually still accepted as proof of identity. However, Social Security also needs a document that proves your Social Security number. Check the Social Security website or call your local office to confirm what documents they will accept.

When does Social Security recalculate my benefit if I keep working?

Social Security recalculates your benefit once per year, usually in August or September. The recalculation includes any new earnings from the previous year. You do not need to do anything — it happens automatically.