What Is The Future Of Social Security
Social Security is expected to run out of cash reserves in 2034, according to the Old-Age and Survivors Insurance Trust Fund, the retirement benefits account managed by the Social Security Administration.
However, this doesnt mean the program would be bankrupt and unable to pay out benefits. If Congress does nothing to reform the system by 2034, Social Security would still be able to pay 79 percent of promised benefits until 2090.
Social Security has run out of cash reserves before. Congress reformed the program in the 1980s by taxing benefits based on income levels and by gradually increasing the full retirement age from 65 to 67.
Can I Apply For The Medicare Program
If you already have Medicare, you can still use this application to apply for retirement benefits. After receiving retirement benefits after two years, you may automatically be entitled to Medicare. SSI and SSDI vary, and your retirement benefits may change depending on which youre entitled to. If you dont have Medicare but are within 3 months of age 65, you can use this application to apply for both retirement and Medicare or just apply for Medicare itself if you are not ready to receive retirement benefits yet.
Taxes On Your Benefits
Your Social Security benefits may be partially taxable if your combined income exceeds certain thresholds. Regardless of how much you make, the first 15% of your benefits are not taxed.
The SSA defines combined income using this formula:
- Your adjusted gross income + nontaxable interest + half of your Social Security benefits = your combined income
If you file your federal tax return as an individual and your combined income is $25,000 to $34,000, then you may have to pay income tax on up to 50% of your benefits. If your combined income is more than $34,000, then you may have to pay tax on up to 85% of your benefits.
If youre married, filing a joint return, and your combined income is $32,000 to $44,000, then you may have to pay income tax on up to 50% of your benefits. If your combined income is more than $44,000, then you may have to pay tax on up to 85% of your benefits.
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Ways To Apply For Disability Benefits:
- If you or your spouse worked for a railroad, call the Railroad Retirement Board at 1-877-772-5772.
Once your disability benefits start, well mail you a welcome package with your Medicare card.
Sign up for Part B if you live in Puerto Rico or outside the U.S.You get Part A automatically. If you want Part B, you need to sign up for it. If you dont sign up for Part B within 3 months after your Part A starts, you might have to wait to sign up for Part B and pay a monthly late enrollment penalty.
Can I Get Social Security If I Work
Yes, you can receive Social Security benefits while you are still working. If youve reached full retirement age, you can work and earn as much as youd like and receive full benefits. If youre under full retirement age, your benefits will be reduced temporarily. The money is not lost, however. Social Security will credit it to your record when you reach full retirement age, resulting in a higher benefit.
The reduction is $1 for every $2 of earned income over $18,960 in 2021 for those younger than full retirement age. During the year when you reach full retirement age, your benefits will be reduced by $1 for every $3 in income over $50,520 in 2021. That continues until the month when you become fully eligible.
Retirees can contribute to individual retirement accounts as long as they have earned income. However, Social Security benefits are not considered earned income for this purpose.
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Required Information About Your Present And Past Employment
In addition to providing a wide range of information about yourself, you will also need to know numerous things about your employment history for your retirement benefits application. When applying, you will need to disclose who you worked for over the last two years and where those businesses are located. The amount of money that you earned over the last two years will also be required.
Other information regarding employment that is required to apply for benefits includes either a record of your earnings or a copy of your Social Security Statement. Individuals who dont have a copy of the statement can get one online by creating an account with the SSA. Other factors that will need to be disclosed on the application include:
- The dates you started and ended U.S. military service before 1968 if applicable
- Whether you or your spouse have even been employed with the railroad industry
- Whether youve been unable to work at any point in the last 14 months due to injuries, illnesses, or conditions and what dates work was not possible
- Whether you have received any Social Security credits in another country under its system
- Whether you expect to get or qualify for an annuity or pension from your employment under the Federal government or a state or local subdivision
How Do Benefits Work And How Can I Qualify
While you work, you pay Social Security taxes. This tax money goes into a trust fund that pays benefits to:
Those who are currently retired
To people with disabilities
To the surviving spouses and children of workers who have died
Each year you work, youll get credits to help you become eligible for benefits when its time for you to retire. Find all the benefits Social Security Administration offers.
There are four main types of benefits that the SSA offers:
Learn about earning limits if you plan to work while receiving Social Security benefits
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Get Ssa Benefits While Living Overseas
U.S. citizens can travel to or live in most, but not all, foreign countries and still receive their Social Security benefits. You can find out if you can receive benefits overseas by using the Social Security Administrations payment verification tool. Once you access the tool, pick the country youre visiting or living in from the drop-down menu options.
How Is Eligibility Determined
Your eligibility for Social Security is based on the credits that you earn during your working years. As of 2021, for every $1,470 you make, you earn one credit, up to a maximum of four per year. If you were born in 1929 or later, then you need 40 creditsessentially, 10 years of full-time workto receive Social Security benefits at retirement.
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When Benefits Will Begin
If your application is approved before you reach at least the minimum retirement age for people born in the same year as you, you will typically begin receiving your Social Security retirement benefits one month after you are entitled to receive them. For instance, if you are eligible to receive benefits beginning in February, you will receive your first payment in March.
How To Apply For Supplemental Security Income
If you are almost 65 but you dont want your retirement benefits to start, you can just apply online for Medicare using the Retirement/Medicare Benefits application. You can apply online for Extra Help with Medicare prescription drug costs. If you want to apply for Supplemental Security Income , please read: How Do I Apply For SSI?
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Getting Social Security Benefits: The Path Of Least Resistance
If you are trying to acquire Social Security benefits, the tips here are going to help make the process easier and less stressful. Its also a good idea to reach out to your local Social Security office if you have issues or questions.
Regardless of what type of benefits you are trying to acquire, knowing what to do and how to do it is essential. Today, there are millions of people who rely on Social Security, and if you need to use this system to help support yourself and your family, knowing how to get through the process as quickly and easily as possible is invaluable. Come check out our blog to learn how to apply for social security benefits today!
How Much Will I Get
Your Social Security benefits are based on your lifetime earnings. The formula is a little complicated, but it averages the income from your 35 highest-earning years. If you have already accumulated 40 Social Security credits, then you can use the online Social Security Retirement Estimator to get a rough idea of what you will get.
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If Youre Not Sure Why You Received A Payment
Contact the authorizing agency directly to find out why they sent the payment. You may be able to find the authorizing agency in the memo line of the check. View this diagram of a sample Treasury check to help you locate the authorizing agency contact information on your own check. Scroll about half way down the page to see the diagram.
If youâre unable to find which agency authorized the payment, . They can help you determine which government agency you need to contact. To find which RFC you need to call, look for its city and state at the top center of the check.
Use the Treasury Check Verification System to verify that the check is legitmate and issued by the government.
Washington State Parks Discount Pass Rules
- Pass must be valid and present with you during your visit.
- Pass holder must be camping at the site to receive the discount.
- Campers are limited to a 10-day stay from April 1 through September 30, and a 20- day stay the rest of the year.
- Moorage is limited to three consecutive nights at any single park.
- Pass cannot be used in conjunction with any other pass or discount.
- Pass only valid for person issued. Proof of identification required at check in.
- You must cancel your reservation if you are unable to use it.
- Do not make duplicate or multiple reservations for the same night.
- A fee of $15 will be charged for replacement of lost, stolen, or damaged passes.
- Pass does not provide discounts on annual permits, reservation fees, extra vehicle fees, roofed shelters, or other services, except as noted.
- Do not alter or make copies of your pass.
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Make Sure You Have A Bank Account
It is now required by the Social Security Administration that all recipients have a bank account. This is so benefits can be directly deposited into their accounts.
If you dont have a bank account, it may be a good idea to think about opening one, or to speak to someone at the SSA about other options. In some cases, you can use a DirectExpress debit card, or seek an exemption from the Department of the Treasury.
Use Our Resources And Services To Stay In Control
There are many time-saving options available to you. Here are our most popular online services:
We continue to expand the services available online. Visit our online services page to see a complete list, including the newest services to help you manage your information. You can also search our comprehensive FAQs section for help with specific retirement issues.
If you need help with managing your benefits and cannot find the answer or service above, visit our contact us page for other ways to get support.
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Who Is Eligible For Spousal Benefits From Social Security
We are often asked How do you qualify for spousal benefits from Social Security? Indeed, to claim Social Security spousal benefits, youll need to meet certain criteria. Your spouse or ex-spouse also must be living .
The criteria for spousal benefits varies depending on whether youre married or divorced:
If youre married, to qualify for spousal benefits you must:
- Be married for at least one year
- Have a spouse that is already collecting their Social Security benefits
- Have an earned benefit that is lower than your potential spousal benefit
- Be age 62 or taking care of a child who is age 16 or younger or disabled, who is the child of your spouse and who is also receiving Social Security benefits based on the spouses work record
If youre divorced, your benefits arent connected in the same way, so you can claim spousal benefits even if your ex isnt collecting Social Security yet. Note that you do not need the consent of your ex-spouse. Both of you, however, must be at least age 62. If youve been divorced more than once, your benefit can be based on your highest-earning spouse if that marriage meets the qualifications. If youre divorced, to qualify for spousal benefits you must:
How A Social Security Break
Figuring out the right time to start taking Social Security benefits isnt always a straightforward process. A Social Security break-even calculator can help you get some perspective on the numbers so you know what you stand to gain or lose by taking benefits earlier versus later.
Social Security break-even calculators help you find the best age to start taking retirement benefits. They do this by comparing your cumulative Social Security retirement benefits paid at age 62, your full retirement age and at age 70 and estimating how long it would take the benefits paid at age 70 to break even with benefits paid starting at age 62.
Heres a simple calculation to give you an idea of how a Social Security break-even calculator works. Say that you have the option to begin receiving $1,200 a month in benefits at age 62. Youd receive $1,700 in benefits if you wait until full retirement age at 66. Or you could receive $2,200 a month in benefits by delaying them until age 70.
The break-even point represents when the cumulative benefits even out. So if you wait until age 70 to start taking benefits, it would take you until age 79 to break even with the benefit amount youd receive if you started taking them at age 62. If you were to start receiving benefits at age 66, it would take you until age 75 to break even with the benefits youd receive if you started them at 62.
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How And When To Apply For Social Security Benefits
- B.S., Texas A& M University
Applying for Social Security benefits is the easy part. You can apply online, by telephone or by walking into your local Social Security office. The hard part is deciding when to apply for your Social Security retirement benefits and rounding up all the documents you’ll need when you do.
How Long Does It Take To Process Social Security Retirement Benefits
If you are considering retiring from the workforce in the near future, one of the most important things you’ll need to know is how long it will take for you to start receiving your Social Security retirement benefits after you apply for them. While it generally takes approximately six weeks for an application to be processed, it is advisable for you to initiate the process three months before you want to receive your first benefit payment.
It usually takes around six weeks to process your Social Security application for retirement benefits, but applying a few months before you need your payments is recommended.
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No More File And Suspend
Note that the claiming strategy called file and suspend, which allowed married couples who have reached their FRA to receive spousal benefits and delayed retirement credits at the same time, ended as of May 1, 2016. However, spouses born before Jan. 2, 1954, who have attained their FRA may still be able to file a restricted application. It allows them to claim spousal benefits while delaying their own benefits up to age 70.
Social Security benefits can be taxable if your combined income is high enough.
Check The Social Security Administration’s Math
Your statement includes a record of the earnings on which you’ve paid taxes and an estimate of the benefits you will receive at various retirement ages: 62, 67, and 70. It is always wise for you to check the SSA’s numbers. Don’t be surprised if you uncover an error. Some government-watchers estimate that the SSA makes mistakes on at least 3% of the total official earnings records it keeps.
When you check your record, make sure that the Social Security number noted on your earnings statement is your own, and make sure the earned income amounts listed on the agency’s records mesh with your own records of earnings as listed on your income tax forms or pay stubs.
Retirement Or Spouses Benefits
You need to be at least 61 years old and 9 months in order to claim these benefits. Another added requirement you also need to want your benefits to start in no more than four months. Applying for retirement benefits is essentially changing your financial status with the IRS and the SSA, which can have monetary ramifications if you change your mind or make changes outside of the allowable timeframes. Make sure to use the online tools to properly align your benefits with your goals. The online application for retirement and spouses benefits can be found here.