After filing your taxes, it’s tempting to toss out what seems like old paperwork—but don’t be so quick to discard your Social Security Cost-of-Living Adjustment (COLA) letter. This official document from the Social Security Administration (SSA) still plays a vital role in your financial life throughout the year—even beyond tax season.
Whether you’re a retiree, disabled worker, or someone receiving survivors’ benefits, holding on to your COLA letter can help with everything from applying for housing to verifying income for loans and assistance programs.
What Is the COLA Letter?
Each year, the SSA adjusts benefit payments based on inflation. This increase—called the Cost-of-Living Adjustment (COLA)—is announced in the fall and applied to benefits starting in January.
The COLA letter mailed by the SSA outlines how much your Social Security payment will increase. You can also access this letter digitally through your my Social Security account.
Why It Still Matters After Tax Season
Even if you’ve filed your taxes and used the letter to calculate your income, you’ll want to keep the COLA letter for several key reasons:
✅ 1. Proof of Income for Loans, Rentals, or Credit
Financial institutions often require up-to-date proof of income when you apply for loans, mortgages, credit cards, or rental properties. The COLA letter is a government-issued document that serves this purpose.
According to the Consumer Financial Protection Bureau (CFPB), official benefit statements are among the most trusted forms of income verification.
✅ 2. Verifying Eligibility for Assistance Programs
Programs like Low-Income Home Energy Assistance Program (LIHEAP), Supplemental Nutrition Assistance Program (SNAP), or Medicaid use income thresholds to determine eligibility. The COLA letter is a quick way to verify that your reported benefits match the latest increase.
To apply or requalify for such programs, you may be required to provide the most recent Social Security benefit statement, which includes COLA adjustments. You can check eligibility for various federal programs at benefits.gov.
✅ 3. Resolving Issues with Your SSA Payments
If you notice discrepancies in your monthly Social Security payments—whether too much or too little—the COLA letter acts as a reference point for the intended increase. Keeping a copy ensures you have the original documentation if you need to dispute an issue with the SSA.
The SSA recommends contacting them directly via their contact page if any inconsistencies arise.
✅ 4. Important for Future Tax Planning
Although your 2025 taxes may be done, the COLA increase impacts your income for 2025, which could change your tax liability next year. Up to 85% of your Social Security benefits may be taxable, depending on your total income.
Understanding the size of your COLA helps with projecting your income, potentially helping you adjust quarterly tax payments or plan retirement withdrawals.
Where to Find or Reprint Your COLA Letter
If you misplaced your paper copy, don’t worry. You can access a digital copy anytime by logging into your my Social Security account. Here’s how:
- Visit the SSA’s official login page.
- Sign in or create an account.
- Go to “Replacement Documents.”
- Select “Benefit Verification Letter,” which includes the COLA increase.
Final Thoughts
Even though tax season is winding down, your 2025 COLA letter is still a vital document. Whether it’s securing housing, applying for government assistance, or handling future tax obligations, this one-page statement can make a big difference.
Treat it like any other official income document—store it securely and know how to access a digital copy in case it’s needed.
For more information or to manage your Social Security benefits, visit the official SSA website.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
Himanshu Sharma writes for Weekend Spy, focusing on recruitment, government schemes, and current affairs. He is dedicated to making complex information accessible to readers.
Himanshu enjoys playing chess, hiking, and trying new recipes, always seeking ways to combine his love for writing with his passion for exploration. Connect with Drop him an email at [email protected].
