Thursday, June 16, 2022

How Do I Find Out My Social Security Benefit Amount

Don't Miss

Can I Stop My Ex Wife From Getting My Social Security

How to Calculate Your Social Security Benefits

Theres nothing anyone can do to prevent their ex from claiming their Social Security. Even though some divorce decrees specify that one spouse will relinquish their rights to collect the other spouses benefits, the Social Security Administration says these provisions are worthless and are never enforced.

Average The Highest 35 Years

The Social Security benefits calculation uses your highest 35 years of earnings to calculate your average monthly earnings. If you do not have 35 years of earnings, a zero will be used in the calculation, which will lower the average. In the table below, the highest 35 years are listed in Column G.

Total the highest 35 years of indexed earnings, and divide this total by 420, which is the number of months in a 35-year work history, to find the Average Indexed Monthly Earnings.

For our example worker, who was born in 1953 and turned 60 in 2013, the highest 35 years of wages total $1,919,040. Divide by 420 to get an AIME of $4,569.

How to Calculate Your AIME for Social Security Benefits
A

How Cola Increases Evolved Over Time

Each year, the SSA announces any increases to Social Security benefits, known as COLA, to help recipients keep up with rising prices. The increases are tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers , which is the official measure of the monthly price change in goods and services. Annually, the SSA compares the CPI-W for the third quarter of the previous year and current year to determine the COLA increase.

While COLA adjustments are now automatic, this was not always the case. Beneficiaries received their first COLA adjustment in October 1950. A second increase was made in September 1952 through legislation. For the next 20 years, recipients only saw their benefits increase if Congress approved it.

In 1972, Congress passed legislation to provide automatic increases linked to a rise in consumer prices. Recipients would no longer have to wait for Congress to take action to receive an increase. The first automatic increases to Social Security benefits took effect in 1975. After 1982, COLA adjustments were effective for December of each year and received by beneficiaries in January.

Here is a history of COLA increases from 1975 to 2021:

Social Security Cost-Of-Living Adjustments

Also Check: What Will I Draw From Social Security

If You Are Still Working And Receiving Old Age Security Payments

If you are still working and your income is higher than $79,054 , you will have to repay part of your Old Age Security pension payment. Delaying your first payment can let you keep more of your pension.

If you are planning on receiving the Guaranteed Income Supplement and your income is less than what you reported on your tax form last year, contact us.

What Is A Social Security Card

How Does Social Security Work? Top Questions Answered

Your Social Security card is an important piece of identification. Youll need one to get a job, collect Social Security, or receive other government benefits.

When you apply for a Social Security number , the Social Security Administration will assign you a nine-digit number. This is the same number that is printed on the Social Security card that SSA will issue you. If you change your name, you will need to get a corrected card.

Also Check: Can I Locate Someone By Their Social Security Number

Also Check: How Long To Get First Social Security Check

How Your Social Security Benefits Are Earned

To be eligible for Social Security benefits in retirement, you must earn at least 40 credits throughout your career. You can earn as many as four credits a year, so it takes 10 years of work to qualify for Social Security.

In 2021, you must earn $1,470 to get one Social Security work credit and $5,880 to get the maximum four credits for the year.

Calculate Your Bend Points

Pay attention because this part can get a little confusing. You will use your AIME to calculate your primary insurance amount by multiplying the AIME through a series of bend points. The theory behind this is that Social Security is intended to help lower income recipients more than those with higher incomes. So, the lower your income, the higher percentage of your income it will replace. Lets jump into the process.

There are two points in your average earnings where your benefits will bend or skew. Those points are adjusted for inflation each year. The multiplier for your earnings within these points is set by law and does not change each year. So, for 2021 the bend points are located at $996 and $6,002, and the multipliers are 0.9, 0.32, and 0.15. The total calculation for PIA would equal 90% of earnings up to $996 plus 32% of earnings between $996 and $6,002, and 15% of earnings above $6,002.

So, lets say your average indexed monthly earnings were $7,000 from Step 1. You could calculate your PIA by doing the following: + + = 2648.02. The amount is rounded to the nearest tenth, so your PIA in this case would be $2,648. The calculation is a little complicated, but certainly doable if you pay attention and take your time. Now that you have your primary amount, you need to check for any adjustments.

Read Also: Social Security Beneifts

Fact #: Social Security Is Particularly Important For People Of Color

Social Security is a particularly important source of income for groups with low earnings and less opportunity to save and earn pensions, including Black and Latino workers and their families, who face higher poverty rates both during their working lives and in old age. The poverty rate among Black and Latino seniors is over 2.5 times as high as for white seniors. There is a significant racial retirement wealth gap, leading seniors of color to face more retirement insecurity than white seniors. African American and Latino workers are less likely to be offered workplace retirement plans and likelier to work in low-wage jobs with little margin for savings. Social Security helps reduce the economic disparities between white seniors and seniors of color.

What Income Reduces Social Security Benefits

How much your Social Security benefits will be if you make $30,000, $35,000 or $40,000

If you start taking Social Security benefits before you reach full retirement age, any income you earn over the annual limit until you reach full retirement age will lower your benefit eligibility for that year. In 2021, if you are retired and haven’t reached full retirement age, the SSA will deduct $1 from your benefits for every $2 earned over $18,960. In the year you reach full retirement age, the SSA will deduct $1 for every $3 earned over $50,520. For the 2022 tax year, these thresholds are slightly higher, at $19,560 and $51,960, respectively.

Recommended Reading: How Much Social Security Am I Entitled To

Primary Insurance Amount Calculation

For 2022, the SSA established the first bend point as $1,024 and the second bend point as $6,172. Using the AIME from the earlier example of $10,141 and the bend points, we can calculate the primary insurance amount .

Below are the steps to calculating the PIA:

  • Multiply the first $1,024 of the person’s AIME by 90% = $921.60
  • Subtract the 1st and 2nd bend point and multiply that difference by 32% = $5,148*.32 = $1,647.35*
  • Subtract the 2nd bend point amount from the total AIME amount and multiply the difference by 15%. = $3,969*.15 = $595.35

*Please note that the calculation results are required to be rounded down to the next lower multiple of 10 cents.

  • The PIA is the sum of the three calculation results: = $3,164.30

*The multipliers90%, 32%, and 15%are set by law and do not change annually. The bend points are inflation-indexed but only through age 62. PIA is effectively locked in at age 62.

Know The Impact Of Continuing To Work

When you claim Social Security at 62, know that you are subject to a cap on wage income. For every $2 you earn above the cap, your Social Security benefit is reduced by $1. The cap changes annually, but it’s $18,960 in 2021. If you expect to earn $1,000 monthly from Social Security, it only takes wage income of about $43,000 to wipe out your benefit entirely.

Once you reach your FRA, the earnings restriction falls away. You can work and earn as much as you want, without any reduction to your benefit.

Don’t Miss: How Much Will I Get For Social Security Retirement

Are My Medicare Premiums Tax Deductible

Medicare premiums are tax deductible. However, you can deduct premiums only once your out-of-pocket medical expenses reach a certain limit.

The IRS has set that limit at 7.5 percent of your adjusted gross income . Your AGI is the money you make after taxes are taken out of each paycheck.

The IRS allows you to deduct any out-of-pocket healthcare expenses, including premiums, that are more than 7.5 percent of your AGI.

So, if you have an AGI of $50,000, you could deduct healthcare expenses after youve paid $3,750 in medical expenses. Depending on your premiums and other healthcare spending, you might not reach this number.

If your spending is less than 7.5 percent of your AGI, you cant deduct any healthcare expenses, including premiums. However, if your healthcare spending is more than 7.5 percent of your income, you can deduct it.

Keep careful track of your out-of-pocket medical expenses throughout the year so you can make the proper deductions at tax time.

You can pay your Medicare bills online or by mail if they arent automatically deducted. You wont pay an added fee for parts A, B, or D, based on your payment method.

There are several ways to pay:

When A Husband Dies Does The Ex Wife Get His Social Security

How to Calculate Social Security Benefits: 13 Steps

If you are the divorced spouse of a worker who dies, you could get benefits the same as a widow or widower, provided that your marriage lasted 10 years or more. Benefits paid to you as a surviving divorced spouse wont affect the benefit amount for other survivors getting benefits on the workers record.

Also Check: How Old To Collect Full Social Security

How To Receive Federal Benefits

To begin receiving your federal benefits, like Social Security or veterans benefits, you must sign up for electronic payments with direct deposit.

If You Have a Bank or Credit Union Account:

  • Call the Go Direct Helpline at .

If You Don’t have a Bank or Credit Union Account:

Make Changes to an Existing Direct Deposit Account:

Learn how to make changes to an existing direct deposit account. You also may contact the federal agency that pays your benefit for help with your enrollment.

Adjust Your Pia For The Age You Will Begin Benefits

The final amount of Social Security retirement benefit that you receive is based on the age when you begin benefits.

The earliest you can begin retirement benefits is age 62 . You get more by waiting until a later ageas late as age 70to begin benefits.

Of course, another complex formula is used to determine how much more you will receive if you wait.

This formula uses your Primary Insurance Amount calculated in the previous step. This is the amount you will get if you start benefits at your full retirement age . Your FRA can vary, depending on the year you were born. For people born between 1943 and 1954, as in our example, the FRA is age 66.

For people born on Jan. 1, the FRA is based on the year prior. Someone born on Jan. 1, 1955, will have an FRA based on 1954.

A reduction is applied to your PIA if you begin benefits before your FRA. A credit, referred to as a “delayed retirement credit,” is applied if you begin to receive benefits after your FRA.

Recommended Reading: Soctal Security

Effect Of Late Retirement On Benefits

1.Represents Full Retirement Age based on DOB Jan. 2, 1955

2.PIA = The primary insurance amount is the basis for benefits that are paid to an individual

To review your situation, your annual Social Security statement will list your projected benefits at age 62, full retirement age, and age 70, assuming you continue to work and earn about the same amount until age 62, full retirement age, or age 70 before retiring. If you need a copy of your annual statement, you can request one from the Social Security Administration .

Claiming Social Security Benefits At The Right Time Means More Money In Your Pocket Heres A Guide To Everything From Knowing Your Full Retirement Age To Taking Social Security Spousal Benefits

3 Ways To Find Out Your Social Security Disability Check Amount

For many Americans, Social Security benefits are the bedrock of retirement income. Maximizing that stream of income is critical to funding your retirement dreams.

The rules for claiming Social Security benefits can be complex, but this guide will help you wade through the details. By educating yourself about Social Security, you can ensure that you claim the maximum amount to which you are entitled.

Here are 12 essential details you need to know.

Dont Miss: Ssa 3369 Bk Sample Answers

Also Check: Social Security Benefits Usa

Theres An Annual Social Security Cost

One of the best features of Social Security benefits is that the government adjusts the benefits each year based on inflation. This is called a cost-of-living adjustment, or COLA, and helps your payments keep up with increasing living expenses. The Social Security COLA is quite valuable its the equivalent of buying inflation protection on a private annuity, which can get expensive.

Because the COLA is calculated based on changes in a federal consumer price index, the size of the COLA depends largely on broad inflation levels determined by the government. In 2021, Social Security beneficiaries saw a 1.3% COLA in their monthly Social Security benefits.

The Kiplinger Letter predicted in September that the COLA for 2022 could be 6%, which would be the largest adjustment since 1982. The final COLA for 2022 will be announced on Oct. 13.

Heres what COLAs have been in other recent years:

  • 2009: 5.8%
  • 2021: 1.3%

Set Up Your Online Access

Begin by visiting my Social Security and setting up an online account. Once you log in, you’ll see your projected benefits at three claiming ages: 62, your full retirement age , and 70. The benefit amount shown for age 62 might be the answer you need, but there are a few extra things you should do to verify its accuracy.

Also Check: How To Get Deceased Parents Social Security Number

If You Have Lived In Canada Less Than 40 Years

Not everyone receives the full Old Age Security pension. The amount you receive depends on the number of years you have lived in Canada.

If you lived in Canada for less than 40 years you will receive a partial payment amount. Your payment amount is based on the number of years in Canada divided by 40.

You can delay your first payment up to 5 years to get a higher amount.

Example

If you lived in Canada for 20 years

If you lived in Canada for 20 years after age 18, you would receive a payment equal to 20 divided by 40, or 50%, of the full Old Age Security pension.

How To Determine The Best Return For Your Spouse/domestic Partner

Social Security Spousal Benefits: The Complete Guide

Married couples have two ways to receive Social Security benefits. A person can claim benefits based on his or her own earnings, or delay claiming them and take half of the partners payout instead. To be eligible, a marriage must be a minimum of 10 years old, but the relationship need not be current. In other words, you can be divorced, though if you are claiming the spousal benefit, you cannot be remarried.

Generally, the higher earner should delay claiming benefits based on his or her record. But if that person worked for fewer years and has zeroes on his or her record, youll want to compare how much your Social Security checks will be at FRA to decide. If your check is bigger, it makes sense for you to claim your spousal benefit and delay filing for the benefit based on your earnings until youre 70 . When you turn 70, then, you would file for your benefit. If your check is more than twice as big as your spouses benefit, he or she should now file for the spousal benefit.

Another advantage of this strategy: Should the higher earner die first, the widow or widower would receive the larger benefit.

Also Check: Find A Person By Social Security Number

Social Security Disability Programs

In addition to retirement benefits, the Social Security Administration manages two programs that provide benefits to people who are disabled or blind.

Social Security Disability Insurance Program
SSDI supports disabled or blind individuals by providing benefits based on their workers contributions to the Social Security trust fund. Your contributions are based on your earnings or your spouses or parents earnings while in the workforce. Your dependents may also be eligible for SSDI benefits based on your earnings.
Supplemental Security Income Program
SSI benefits are paid out as cash assistance to people with limited incomes and resources who are elderly, blind or disabled. These benefits may also include blind or disabled children. SSI payments are a federal benefit funded by the general fund of the United States not the Social Security trust fund. Some states provide additional state supplemental benefits in addition to the federal SSI payments.

In some cases, people may be eligible for both SSI and SSDI at the same time. The Social Security Administration calls these concurrent benefits. This can happen when a disability qualifies you for Social Security Disability Benefits, but you only get a small amount of monthly SSDI benefits. This may qualify you to receive SSI benefits as well.

Comparing SSDI and SSI Programs

FEATURE
Up to 85%

Income Taxes for Other Benefit Programs

More articles

Popular Articles