Don't Mess With Taxes

Good news for Social Security recipients. You'll finally get a cost of living increase next year.

The Social Security Administration says senior citizens receiving the government payments will see a 3.6 percent cost-of-living adjustment (COLA) that will take effect with the first benefits check of 2012.

My mother is so happy.

For two years, her monthly benefit check has been flat and hints of rebate checks never came to fruition while her expenses have increased.

But in a couple of months, she and approximately 55 million other older Americans will be getting around $39 more a month from Uncle Sam.

This is very good news for mom.

Her enthusiasm, however, might not last.

Senior citizens also will likely see a higher premium in 2012 for Medicare Part B. That's the portion that covers doctor visits and outpatient services and is deducted from Social Security payments.

Now we wait to see how these increases in both payments to and by recipients of these government programs will affect deficit reduction decisions, due by Nov. 23, of the Congressional super committee.

You also might find these items of interest:

• Taxes on retirement money look to be a growth sector
• Retirement benefits war on the horizon?
• Some Social Security is taxable (Bankrate)