Posts Tagged ‘Social Security Benefits’
The Full Scope of Social Security Benefits
Sammy Beanard asked:
You work during your work life. You contribute. Your employer contributes. You retire. You draw the benefits. That is a key part of Social Security, but it is only a part. The rest of the protections in their own way are every bit as valuable and as necessary as retirement benefits.
For example, there is a disability benefit. If a young worker is on their way to work today and is disabled in an accident on a freeway and cannot work again, that worker under the social contract we have under Social Security has the ability not to become a pauper, not to have their family and children become paupers, but to be able to sustain themselves because they are part of this National, social contract in the insurance system where we have anticipated that that will happen to some number of people.
And we do not want those people’s lives to be destroyed when a disabling accident happens, whether they are on their way to work, at work, or what have you.
In addition to that, we have, if we think of an even worse case, an instance where someone is a younger worker loses their life. We have a survivor’s benefit so that again, you have a situation where the family is able to derive some support and some financial strength, but it comes off this National insurance contract that we have one with the other.
We hope this will not happen to us, but if it does or to the person next door or across town, then, we are tied into this arrangement where we provide this kind of insurance one to the other.
And it is a very important benefit. In every single day, there are younger workers in our society, workers up and down the scale to which these events happen, and families.
And the Social Security system kicks in. It is there when they need it. And thank God for it.
Finally, there is also health care protection in the Medicare Part A portion of Medicare. And so it is not just a matter of a retirement benefit per se in the sense of an income that comes in at retirement age, but it also is the very important and very valuable, very financially important support that comes through Part A of Medicare.
Any serious discussion of Social Security cannot be squeezed down to an artificially small definition of what it is, as important as that may be, namely, retirement benefits, but we have to understand this broader scope of the protections because that is really what ties the generations together.
This is really a cross-generational program. This is not just a matter of the younger workers providing a flow of income into the fund for retired workers, whether in their family or outside.
It is actually a cross-generational set of insurance protections so that younger workers have available to them at exactly the time they need it the most of a form of social insurance that they would not have any other way.
Scott
You work during your work life. You contribute. Your employer contributes. You retire. You draw the benefits. That is a key part of Social Security, but it is only a part. The rest of the protections in their own way are every bit as valuable and as necessary as retirement benefits.
For example, there is a disability benefit. If a young worker is on their way to work today and is disabled in an accident on a freeway and cannot work again, that worker under the social contract we have under Social Security has the ability not to become a pauper, not to have their family and children become paupers, but to be able to sustain themselves because they are part of this National, social contract in the insurance system where we have anticipated that that will happen to some number of people.
And we do not want those people’s lives to be destroyed when a disabling accident happens, whether they are on their way to work, at work, or what have you.
In addition to that, we have, if we think of an even worse case, an instance where someone is a younger worker loses their life. We have a survivor’s benefit so that again, you have a situation where the family is able to derive some support and some financial strength, but it comes off this National insurance contract that we have one with the other.
We hope this will not happen to us, but if it does or to the person next door or across town, then, we are tied into this arrangement where we provide this kind of insurance one to the other.
And it is a very important benefit. In every single day, there are younger workers in our society, workers up and down the scale to which these events happen, and families.
And the Social Security system kicks in. It is there when they need it. And thank God for it.
Finally, there is also health care protection in the Medicare Part A portion of Medicare. And so it is not just a matter of a retirement benefit per se in the sense of an income that comes in at retirement age, but it also is the very important and very valuable, very financially important support that comes through Part A of Medicare.
Any serious discussion of Social Security cannot be squeezed down to an artificially small definition of what it is, as important as that may be, namely, retirement benefits, but we have to understand this broader scope of the protections because that is really what ties the generations together.
This is really a cross-generational program. This is not just a matter of the younger workers providing a flow of income into the fund for retired workers, whether in their family or outside.
It is actually a cross-generational set of insurance protections so that younger workers have available to them at exactly the time they need it the most of a form of social insurance that they would not have any other way.
Scott
Will my small pension be cut in half when I collect social security benefits?
Terry asked:
I receive 300 dollars each month from a pension. Next year I will collect social security. My neighbor says my pension will be cut in half when I start collecting social security benefits. Is he correct or will I still get the three hundred dollars each month?
Marion
I receive 300 dollars each month from a pension. Next year I will collect social security. My neighbor says my pension will be cut in half when I start collecting social security benefits. Is he correct or will I still get the three hundred dollars each month?
Marion
How many years is a person required to work before qualifing for Social Security benefits?
Rcubed asked:
A friend of mine has immigrated to this country and she is 62 years old. Some people have advised her not to work and wait until she is 67 years old to apply for Social Security benefits. Otherwise, if she worked, she had to wait 10 years to qualify. Is it true, or I am advising my friend wrong when I am advising her to look for a job?
Carrie
A friend of mine has immigrated to this country and she is 62 years old. Some people have advised her not to work and wait until she is 67 years old to apply for Social Security benefits. Otherwise, if she worked, she had to wait 10 years to qualify. Is it true, or I am advising my friend wrong when I am advising her to look for a job?
Carrie
Does your SSI(Social Security) benefits go down with you move to another state?
bluedg85 asked:
Someone told me when you move to a different state your social security benefits can go down. Is there any truth in that?
Marilyn
Someone told me when you move to a different state your social security benefits can go down. Is there any truth in that?
Marilyn
I have social security benefits, Can my chilld work without losing benefits?
T.s. asked:
Me, my husband, and my two children get social security benefits, and my 16 year old daughter wants to work, can she work without losing her benefits because she is under 18?
Shirley
Me, my husband, and my two children get social security benefits, and my 16 year old daughter wants to work, can she work without losing her benefits because she is under 18?
Shirley
How To Determine If Your Social Security Retirement Benefits Are Taxed
Robert D. Cavanaugh, CLU asked:
Up to 85% of your Social Security retirement benefits may be taxable. Here’s how to find out how much is taxable and what you can do to reduce or eliminate any tax.
Of all the financial issues surrounding being a senior, the one that tops the list in terms of anger is the fact that, depending on the situation, Social Security retirement benefits are taxable. My experience indicates that some seniors are completely unaware of this fact. I have also had to sit and listen to the ranting of those who are aware. It goes something like this: “I already paid tax on the earnings during my working years. The Social Security withdrawn from my income each pay check was a tax. This sounds like a tax on a tax.” And on and on…
After letting the person blow off some steam, my response typically was, “Hey, don’t shoot the messenger! I’m here to see if any of your Social Security benefits are taxed, if so, how much and what we can do to reduce or eliminate that tax.” So let me take you through the first part of our conversation.
Whether or not you are taxed depends on:
1. The amount of your income.
2. Whether or not you have income from sources other than Social Security.
The amount of your tax depends on:
1. Your marital filing status: single or married.
2. The amount of your income.
The tax on Social Security retirement benefits was put into effect in 1983. Tax was applied on up to 50% of benefits. In 1993 this was increased to 85%. Here’s how the calculation goes…
The first step is to calculate your “provisional income”. So grab last year’s tax return.
1. Subtract your taxable S.S. benefits (line 20b) from your Adjust Gross Income (line 37).
2. Add one half of your total S.S. benefits (line 20a).
3. Add any tax exempt interest (line 8b).
4. The result is your “provisional income”.
Once you know this number, you can apply the rules to determine how much of your S.S. is taxed. Again, this depends on whether you are married or single and the amount of your income.
Let’s look first at a married couple filing jointly. Here is the math…
1. If your provisional income is below $32,000, you don’t have a problem.
2. For provisional income over $32,000:
a. Take the provisional income between $32,000 and $44,000 and divide it by two.
b. If your provisional income is above $44,000, take the total provisional income, subtract $44,000 and multiply by 0.85.
c. Add 2a and 2b.
d. Multiply your total S.S. benefits (line 20a) by 0.85.
e. The lesser of your result on 2c and 2e above is the amount of your S.S. benefit taxed.
Now let’s look at the calculation for a single person…
1. If your provisional income is below $25,000, none of your S.S. benefits are taxable.
2. For provisional incomes over $25,000:
a. Take the provisional income between $34,000 and $25,000 and divide it by two.
b. If your provisional income is above $34,000, subtract $34,000 from your total provisional income and multiply by 0.85.
c. Add 2a and 2b.
d. Multiply your total S.S. benefit (line 20) by 0.85.
e. The lesser of your result on 2c and 2d above is the amount of your S.S. benefit taxed.
Now that you know whether or not any of your Social Security benefits are taxable, and if so, how much, the next step is to take a look at the ways you can reduce or eliminate this tax. In general, there are three solution categories:
1. Reduce your interest income. The most common is interest on CDs.
2. Reduce your dividend income.
3. Reduce your tax exempt interest income.
Note: The calculations above use a very simplified approach. Your situation may have other factors that would affect the math. It is strongly advised that you consult with a qualified tax professional.
Leo
Up to 85% of your Social Security retirement benefits may be taxable. Here’s how to find out how much is taxable and what you can do to reduce or eliminate any tax.
Of all the financial issues surrounding being a senior, the one that tops the list in terms of anger is the fact that, depending on the situation, Social Security retirement benefits are taxable. My experience indicates that some seniors are completely unaware of this fact. I have also had to sit and listen to the ranting of those who are aware. It goes something like this: “I already paid tax on the earnings during my working years. The Social Security withdrawn from my income each pay check was a tax. This sounds like a tax on a tax.” And on and on…
After letting the person blow off some steam, my response typically was, “Hey, don’t shoot the messenger! I’m here to see if any of your Social Security benefits are taxed, if so, how much and what we can do to reduce or eliminate that tax.” So let me take you through the first part of our conversation.
Whether or not you are taxed depends on:
1. The amount of your income.
2. Whether or not you have income from sources other than Social Security.
The amount of your tax depends on:
1. Your marital filing status: single or married.
2. The amount of your income.
The tax on Social Security retirement benefits was put into effect in 1983. Tax was applied on up to 50% of benefits. In 1993 this was increased to 85%. Here’s how the calculation goes…
The first step is to calculate your “provisional income”. So grab last year’s tax return.
1. Subtract your taxable S.S. benefits (line 20b) from your Adjust Gross Income (line 37).
2. Add one half of your total S.S. benefits (line 20a).
3. Add any tax exempt interest (line 8b).
4. The result is your “provisional income”.
Once you know this number, you can apply the rules to determine how much of your S.S. is taxed. Again, this depends on whether you are married or single and the amount of your income.
Let’s look first at a married couple filing jointly. Here is the math…
1. If your provisional income is below $32,000, you don’t have a problem.
2. For provisional income over $32,000:
a. Take the provisional income between $32,000 and $44,000 and divide it by two.
b. If your provisional income is above $44,000, take the total provisional income, subtract $44,000 and multiply by 0.85.
c. Add 2a and 2b.
d. Multiply your total S.S. benefits (line 20a) by 0.85.
e. The lesser of your result on 2c and 2e above is the amount of your S.S. benefit taxed.
Now let’s look at the calculation for a single person…
1. If your provisional income is below $25,000, none of your S.S. benefits are taxable.
2. For provisional incomes over $25,000:
a. Take the provisional income between $34,000 and $25,000 and divide it by two.
b. If your provisional income is above $34,000, subtract $34,000 from your total provisional income and multiply by 0.85.
c. Add 2a and 2b.
d. Multiply your total S.S. benefit (line 20) by 0.85.
e. The lesser of your result on 2c and 2d above is the amount of your S.S. benefit taxed.
Now that you know whether or not any of your Social Security benefits are taxable, and if so, how much, the next step is to take a look at the ways you can reduce or eliminate this tax. In general, there are three solution categories:
1. Reduce your interest income. The most common is interest on CDs.
2. Reduce your dividend income.
3. Reduce your tax exempt interest income.
Note: The calculations above use a very simplified approach. Your situation may have other factors that would affect the math. It is strongly advised that you consult with a qualified tax professional.
Leo
How can I get a certification of my social security benefits?
ravineboy18 asked:
I need proof of my Social Security benefits that I recieve each month, and I would like to know if I can go to Social Security on line and get a print out of it.
Leo
I need proof of my Social Security benefits that I recieve each month, and I would like to know if I can go to Social Security on line and get a print out of it.
Leo
Can a husband & wife get their Social Security benefits when they retire?
joie asked:
I heard that only one can draw their Social Security benefit when they both retire. Is this true? I also was told that some married couples file for divorce but then live together just so they can both get their S.S. retirement benefits.
Amanda
I heard that only one can draw their Social Security benefit when they both retire. Is this true? I also was told that some married couples file for divorce but then live together just so they can both get their S.S. retirement benefits.
Amanda
How do you understand a Social Security Benefits estimate letter from government?
rrsafety asked:
I am 42 years old and just got my yearly benefits estimate from Social Security. They estimate my benefit to be about $2000 a month when I retire… is that factoring in inflation or not, or should I assume that amount is likely to grow 2-3% higher per year over the next 23 years.
Also, if my spouse is also eligible for benefits, do we just add our two estimated benefits together or do they reduce one of them when both spouses are receiving benefits?
Gregory
I am 42 years old and just got my yearly benefits estimate from Social Security. They estimate my benefit to be about $2000 a month when I retire… is that factoring in inflation or not, or should I assume that amount is likely to grow 2-3% higher per year over the next 23 years.
Also, if my spouse is also eligible for benefits, do we just add our two estimated benefits together or do they reduce one of them when both spouses are receiving benefits?
Gregory
Is it true that your social security benefits are based on the last few years of your salary?
GriffinsNC asked:
A friend who is nearing retirement says that she has to earn as much as possible for the last few years before she retires so that she can get the most social security benefits. Is it true that if you change jobs and make less money (in a less stressful job!) that it will affect what you get at retirement?
Micheal
A friend who is nearing retirement says that she has to earn as much as possible for the last few years before she retires so that she can get the most social security benefits. Is it true that if you change jobs and make less money (in a less stressful job!) that it will affect what you get at retirement?
Micheal
