Monday, May 16, 2022

What Do You Get From Social Security

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How long can I get Social Security Disability benefits?

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Theres A Social Security Spousal Benefit

Marriage brings couples an advantage when it comes to Social Security. Namely, one spouse can take what’s called a spousal benefit, worth up to 50% of the other spouse’s Social Security benefit. Put simply, if your monthly Social Security benefit is worth $2,000 but your spouse’s own benefit is only worth $500, your spouse can collect a spousal benefit worth $1,000 — bringing in $500 more in income per month. Just as the benefit based on your own work history is reduced if you claim it early, the same is true for a spousal benefit. That 50% figure is the maximum amount that only a spouse who is at least full retirement age is eligible for. Taking the spousal benefit early at, say, age 62, reduces the amount to as little as 32.5% of the higher earners benefit. If you take your own benefit early and then later switch to a spousal benefit, your spousal benefit will still be reduced.

When Am I Eligible

Depending on when you were born, you will be eligible for full retirement benefits as early as age 65 or as late as age 67.

  • If you were born before 1938, your full retirement age is 65.
  • If you were born from 1938 to 1942, the age ranges from 65 and two months to 65 and 10 months.
  • If you were born from 1943 to 1954, its 66.
  • If you were born from 1955 to 1959, it ranges from 66 and two months to 66 and 10 months.
  • If you were born in 1960 or later, its 67.

You canopt to receive Social Security as early as age 62, but if you do, then your monthly benefits will be permanently reduced. For example, if you take benefits at 62 and your full retirement age is 66, then your benefits will be reduced by 25%.

If you postpone taking benefits past your full retirement age, then you will be rewarded with a higher benefit: 8% for each year up to age 70 , when benefits max out and there is no further incentive to delay signing up.

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How Your Primary Insurance Amount Is Calculated

Once you have your AIME, you can calculate your primary insurance amount , the base rate for your Social Security payments. The PIA calculation relies on so-called bend points that determine how much of your income will be replaced by Social Security benefits in retirement.

Think of bend points as similar to tax brackets, in that they determine a percentage of your benefits based on incremental buckets of earnings. There are three bend point buckets: one for 90% of income replacement, one for 32% and one for 15%.

These bend point buckets help give lower lifetime earners a higher percentage of income replacement, and higher lifetime earners a lower rate of income replacement, says Jim Blankenship, certified financial planner and author of A Social Security Owners Manual.

The dollar amounts of bend points are adjusted for inflation each year, but the percentages of each bend point are set by law and remain unchanged. AIME amounts are always rounded down to the nearest $0.10. For 2021, the bend points are:

90% of the first $996 of your AIME, plus

32% of your AIME between $996 and $6,002, plus

15% of your AIME over $6,002

For a worker with an AIME of $6,250, the calculation would look like this:

90% of $966 = $896.40, plus

32% of $5,006 = $1,601.92, rounded down to $1,601.90, plus

15% of $248 = $37.20

This worker would earn a monthly Social Security benefit of $2,535.50 .

Workers Who Retire In Certain Foreign Countries

Do You Need Social Security Number SSN To Get My Vanilla ...

U.S. citizens who travel toor live inmost foreign countries after they retire usually can receive Social Security benefits. However, if that country is Azerbaijan, Belarus, Cuba, Kazakhstan, Kyrgyzstan, Moldova, North Korea, Tajikistan, Turkmenistan, or Uzbekistan, then the government will not send them Social Security payments. Exceptions may be available in all of these countries except Cuba and North Korea. Use the governments Payments Abroad Screening Tool to see if you will be able to continue receiving Social Security benefits while living abroad.

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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.

What If I Change My Mind

If you receive Social Security benefits at a reduced rate, but then change your mind, you have the option of withdrawing your application and paying back to the government what you’ve already received . Then, you could restart benefits at a later date to take advantage of a higher payout. But you are limited to one withdrawal per lifetime.

For example, let’s say you elected to receive early benefits at age 62, but then decided to go back to work at age 63. You could withdraw your Social Security application within the first 12 months of receiving benefits, pay back the years worth of benefits you received, go back to work, and then wait until a later age to restart your benefit checks at a higher level.

For important details about repaying benefits please read the SSA publication If You Change Your Mind.

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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.

What Happens If I Work And Get Social Security Retirement Benefits

How to Get More Social Security When You Retire

You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefit. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.

  • We use the following earnings limits to reduce your benefits: If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit.

For 2021 that limit is $18,960.

  • In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age.

If you will reach full retirement age in 2021, the limit on your earnings for the months before full retirement age is $50,520.

Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.

Use our Retirement Age Calculator to find your full retirement age based on your date of birth.

Use our Retirement Earnings Test Calculator to find out how much your benefits will be reduced.

What counts as earnings:

Your benefits may increase when you work:

When youre ready to apply for retirement benefits, use our online retirement application, the quickest, easiest, and most convenient way to apply.

If you need to report a change in your earnings after you begin receiving benefits:

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Documents You Need To Apply

Please select the benefit you will be applying for from the list below to see what information and documents you may need when you apply:

    If you don’t have all the documents you need, don’t delay applying for Social Security benefits.

    In many cases, your local Social Security office can contact your state Bureau of Vital Statistics and verify your information online at no cost to you. If we can’t verify your information online, we can still help you get the information you need.

    Mailing Your Documents

    If you mail any documents to us, you must include the Social Security number so that we can match them with the correct application. Do not write anything on the original documents. Please write the Social Security number on a separate sheet of paper and include it in the mailing envelope along with the documents.

    How Credits Are Earned

    Since 1978, when you work and pay Social Security taxes, you earn up to a maximum of four credits per year.

    The amount of earnings it takes to earn a credit may change each year. In 2021, you earn one Social Security or Medicare credit for every $1,470 in covered earnings each year. You must earn $5,880 to get the maximum four credits for the year.

    During your lifetime, you might earn more credits than the minimum number you need to be eligible for benefits. These extra credits do not increase your benefit amount. The average of your earnings over your working years, not the total number of credits you earn, determines how much your monthly payment will be when you receive benefits.

    Read our publication, “How You Earn Credits,” for more information.

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    Social Security Survivor Benefits

    Even after you die, Social Security can continue to pay benefits to your spouse and childrenand even to your parents, if you were supporting them. For your family to receive survivor benefits, youll need to have earned at least six Social Security credits in the three years before your death.

    Along with a one-time lump-sum payment of $255, your surviving spouse and children may each qualify for 71.5% to 100% of your Social Security payments, up to a maximum of 150% to 180% of your benefit rate. Eligibility for survivor benefits requires that:

    • Surviving spouse is at least 60 or older
    • Surviving spouse is 50 or older and disabled
    • Surviving spouse is caring for your child who is younger than 16 or disabled
    • Children who are younger than 18
    • Children younger than 19 and enrolled in elementary or secondary school
    • Children older than 18 who are severely disabled
    • Your surviving parents if they were dependent on you for at least half of their support

    Your Social Security Benefits Will Be Taxed

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    Most people know that you pay tax into the Social Security Trust Fund throughout your career, but did you know that you may also have to pay tax on your Social Security benefits once you start receiving them? Benefits lost their tax-free status in 1984, and the income thresholds for triggering tax on benefits haven’t been increased since then.

    As a result, it doesn’t take a lot of income for your Social Security benefits to be pinched by Uncle Sam. For example, a married couple with a combined income of more than $32,000 may have to pay income tax on up to 50% of their Social Security benefits. Higher earners may have to pay income tax on up to 85% of their benefits.

    You may also have to pay state income taxes on your Social Security benefits. See our list of the 13 States That Tax Social Security Benefits.

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    What About Your Spouse And Children

    Your spouse may also receive Social Security benefits once you retire, even if they never worked outside the home. If your spouse is at least 62 years old, then they can apply for benefits at a reduced rate. By waiting until full retirement age, however, your spouse can receive up to half the amount of your monthly benefits. Payments received by your spouse do not lower your own payments.

    Your ex-spouse can also collect Social Security based on your earnings. To qualify, ex-spouses must meet the following conditions:

    • The marriage must have lasted at least 10 years
    • Two or more years must have passed since the divorce
    • They must not have remarried
    • They must be at least 62 years old and must not qualify for higher Social Security benefits based on their own employment history

    If you reach retirement age and have children who are below age 18or 19 and still enrolled in elementary or secondary school, or older than 18 but severely disabledthen those children may also qualify to receive benefits based on your monthly entitlement. Your children can receive monthly payments up to half of the amount to which you are entitled, and these payments will not decrease your own Social Security benefits.

    The limit for benefits received by your spouse and children varies but is normally 150% to 180% of your full retirement benefits.

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    You Can Undo A Social Security Claiming Decision

    There aren’t many times in life you can take a mulligan. But Social Security offers you the chance for a do-over. Say you claimed your benefit, but soon thereafter wish you had waited to take it. Within the first 12 months of claiming Social Security benefits, you can withdraw the application. You will need to pay back all the benefits you received, including any spousal benefits based on your record. But you can later restart your Social Security benefits at the higher amount youll earn by waiting.

    Early claimers have another opportunity for a do-over: They can choose to suspend their Social Security benefit at full retirement age. Say you took your benefit at age 62. Once you turn full retirement age, you can suspend your benefit. You don’t have to pay back what you have received, and your benefit will earn delayed retirement credits of 8% a year. Wait to restart your benefit at age 70, and your monthly payment will get up to a 32% boost — which could erase much of the reduction from claiming early.

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    Medical Qualifying With A Mental Illness

    The SSA conducts a detailed review of your medical records to determine your eligibility for benefits. During this review, they try to match your records to a disability listing in the Blue Book. The Blue Book is the SSAs medical guide that is used to evaluate every disability application.

    Disability listings outline the severity level requirements and the specific medical evidence needed to support a claim for benefits. Mental illnesses appear in Section 12.00 and include:

    • 12.06, Anxiety-related Disorders you may qualify under this listing if you have a severe phobia, post-traumatic stress, a panic disorder, or another anxiety-related condition.
    • 12.08, Personality Disorders this is the listing under which you may qualify if you have severe, clinical depression.
    • 12.04, Affective Disorders if you have bipolar disorder, your application will be reviewed under this listing.

    Extensive medical records are necessary to qualify, including:

    • Information on your diagnosis, ideally from a psychiatrist or psychologist
    • Brain scans or other evidence of physical abnormalities that document an organic cause for symptoms, if applicable
    • Treatment records, documenting medications, therapy, and other management methods used and their effects
    • Thoroughly documented episodes of increased symptoms or periods of decompensation
    • Well documented affects of your symptoms on your everyday abilities or activities of daily living

    Replacement Card For A Foreign Born U S Citizen Adult

    Social Security Payments: When do I Get my Disability Money?

    You can replace your Social Security card for free if it is lost or stolen. However, you may not need to get a replacement card. Knowing your Social Security number is what’s important. You are limited to three replacement cards in a year and 10 during your lifetime. Legal name changes do not count toward these limits. Also, you may not be affected by these limits if you can prove you need the card to prevent a significant hardship.

    Important

    You must present original documents or copies certified by the agency that issued them. We cannot accept photocopies or notarized copies. All documents must be current . We cannot accept a receipt showing you applied for the document.

    You may be able to request your replacement Social Security card online. Our online service is a fast and secure way to get a replacement. If you are age 18 or older with a U.S. mailing address and have amySocial Security account, you can apply for a replacement card online. For more information about creating my Social Security account and getting a replacement card online, visit our Social Security Number and Card website.

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    How Do I Apply For Benefits

    You can apply at a local Social Security office, by phone , or online. Youll need to provide certain information and possibly some documents, such as a birth certificate. Social Security Form SSA-1 has a complete list.

    The Social Security Administration says you can apply up to four months before the date you want your benefits to start.

    Original Card For A Noncitizen Adult

    In general, only noncitizens who have permission to work from the Department of Homeland Security can apply for a Social Security number . If you do not have permission to work but need an SSN for other purposes, see “If you do not have permission to work” for further information.

    Enumeration Beyond Entry

    You may be eligible to apply using our automated process called Enumeration Beyond Entry if you are applying to the United States Citizenship and Immigration Services for work authorization or lawful permanent resident status.

    You may not need to visit a Social Security office or Social Security Card center if you apply using the Form I-765 or I-485. If you are approved for either application through USCIS, and elect to apply for an SSN, USCIS will send us the information to issue you an original SSN card or replacement card. You should receive your SSN card no later than 7 to 10 business days after you receive your Employment Authorization Document or I-551 from USCIS. We will mail the card to the address provided on the application. For more information, see âApply For Your Social Security Number While Applying For Your Work Permit and or Lawful Permanent Residencyâ.

    Important

    You must present original documents or copies certified by the agency that issued them. We cannot accept photocopies or notarized copies. All documents must be current . We cannot accept a receipt showing you applied for the document.

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