No Social Security cost of living adjustment for you!

Tom Barlow
Updated
pickpocket
pickpocket

For 50 million Americans currently collecting Social Security, the news that they will receive no yearly cost-of-living adjustment this year for the first time since the COLA was added to the program in 1975 is distressing. However, is it unfair?

The COLA is based on the Bureau of Labor Statistics' Consumer Price index, a monthly and yearly computation that more or less reflects the change in prices of 200 products. The products fall within eight categories; Food and Beverages, Housing, Apparel, Transportation, Medical Care, Recreation, Education and Communication, Other goods and services. It does not include income and Social Security tax, or changes in value of investment items and real estate.

At the end of 2008, SS recipients were given a 5.8% COLA, although the CPI was only up 3.8% for the year. While this might seem like a bonus, remember that 2008 was an atypical year, with energy costs driving the index up to a high of 219.086 before falling back to 215.303 at the end of the year.

Originally published
Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.
Go Now
Reporting Self-Employment Business Income and Deductions
Self-employed taxpayers report their business income and expenses on Schedule C. TurboTax can help make the job easier.
Read MoreBrought to you byTurboTax.com
When Does a Senior Citizen on Social Security Stop Filing Taxes?
The IRS typically requires you to file a tax return when your gross income exceeds the standard deduction for your filing status. These filing rules still apply to senior citizens who are living on Social Security benefits. However, if Social Security is your sole source of income, then you don't need to file a tax return.
Read MoreBrought to you byTurboTax.com
Top 5 Reasons to Adjust Your W-4 Withholding
Common lifestyle changes, like getting a job or getting married, can change your tax liability. To avoid being caught off guard by an unexpected tax bill or a huge tax refund, you'll need to adjust your withholdings on your paycheck.
Read MoreBrought to you byTurboTax.com
Standard Deduction vs. Itemized Deductions: Which Is Better?
The pressure of a looming tax deadline may make it easier to take the standard deduction rather than itemize your deductions, but you should weigh this question carefully. Here are a few key areas to consider — including charitable donations, medical deductions, and how your mortgage figures into your taxes.
Read MoreBrought to you byTurboTax.com