If you recently checked your bank account and found that your 2026 Social Security “raise” was closer to the price of a cup of coffee than a real-world inflation adjustment, you aren’t alone. While the Social Security Administration (SSA) officially announced a 2.8% Cost-of-Living Adjustment (COLA) for this year, many seniors are seeing a net increase of just a few dollars. This discrepancy is primarily due to the sharp rise in Medicare Part B premiums, which jumped from $185.00 to $202.90 per month.
However, you shouldn’t just assume the math is correct simply because it came from a federal agency. Mistakes in benefit calculations, outdated Medicare Part D data, and missing tax withholdings can all lead to a “shrunken” check that is actually the result of a clerical error. Before you accept your $2.00 raise as final, follow this step-by-step guide to auditing your January 2026 statement for accuracy.
Step 1: Verify Your Gross Benefit Amount
Your audit must begin with your “Gross” benefit, which is the amount you are entitled to before any deductions like Medicare or taxes. Take your December 2025 gross amount and multiply it by 1.028 to account for the 2.8% COLA. According to the Social Security Administration’s 2026 Fact Sheet, the average retired worker’s benefit should have risen by about $56.
If your gross amount on the January statement doesn’t match this calculation, there may be an issue with your base record. While the COLA is applied automatically, errors can occur if you recently reached Full Retirement Age or if there was a change in your work history that wasn’t updated. Ensure that the number you are starting with is the true 2.8% increase over your 2025 year-end balance.
Step 2: Account for the Medicare Part B Jump
The most common “thief” of your 2026 raise is the mandatory deduction for Medicare Part B. For most seniors, the standard premium increased by exactly $17.90 per month, moving from $185.00 to $202.90. This means that if your 2.8% COLA was $20.00, your net increase would only be a measly $2.10.
As reported by Investopedia, this premium spike can consume a third or more of the average senior’s raise. Check the “Deductions” section of your statement to ensure you are being charged the standard $202.90. If you see a higher number, you may be being charged an “Income-Related Monthly Adjustment Amount” (IRMAA) based on your income from two years ago, which might no longer be accurate.
Step 3: Check Your Part D and Advantage Plan Premiums
Many retirees have their private Medicare Part D (prescription drug) or Medicare Advantage premiums deducted directly from their Social Security checks. Because these plans change their rates every January, a “hidden” price hike here could be the reason your raise vanished. If your drug plan raised its premium by $10, that’s another $10 gone from your net “raise.”
According to discussions on Reddit’s Social Security community, some seniors have seen their Part D deductions jump from $5 to $69 overnight. This often happens if you lost your “Extra Help” subsidy or if your plan was discontinued and you were “mapped” into a more expensive one. Review your January statement to see if the “Prescription Drug Plan” deduction has changed since December.
Step 4: Inspect Your Voluntary Tax Withholding
If you previously requested that federal or state taxes be withheld from your Social Security check, that percentage is applied to your new higher gross amount. This means as your benefit goes up, the amount of tax withheld also goes up. If you haven’t adjusted your withholding in years, you might be overpaying the IRS every month.
You can change your withholding at any time by filing IRS Form W-4V with the Social Security Administration. Many seniors find that by slightly reducing their withholding percentage, they can “claw back” some of their vanished COLA raise. Check your statement’s “Federal Tax Withheld” line to see exactly how much is being sent to Uncle Sam before the check reaches you.
Step 5: Screen for IRMAA Surcharges
If your income was high two years ago, you might be paying a Part B surcharge that you no longer owe. Medicare uses tax returns from 2024 to determine your 2026 premiums, but life happens. If you’ve retired, divorced, or lost a spouse since 2024, your income has likely dropped significantly.
As noted by KFF, you can appeal an IRMAA surcharge if you’ve had a “Life-Changing Event.” If you see a Part B deduction significantly higher than $202.90, you should immediately file a “Request for Reconsideration.” This is a common error that can cost you hundreds of dollars a month in “lost” benefits.
Taking Control of Your Benefits
The $2.00 “raise” is a frustrating reality for millions in 2026, but it shouldn’t be a mystery. By auditing your statement line-by-line, you can determine if your shrunken check is due to a federal mandate or a simple clerical error. If you do find a discrepancy, don’t wait—contact the Social Security Administration at 1-800-772-1213 or visit your local field office. You worked hard for these benefits, and you deserve to receive every penny that the law allows, even if the “raise” is smaller than you hoped.
Did you find an error on your January statement, or did the Medicare hike eat your entire raise? Leave a comment below and share what you discovered during your benefit audit!
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