Can my children benefit from my Social Security after I pass away?
It’s possible, but the answer depends on the age of your children, and the length of time you paid your Social Security taxes.
In order to be eligible, the children must be 18 or younger and unmarried. If they are 19, but still in high school, they would still qualify. Also, you have to earn, at the minimum, six Social Security credits, or quarters of coverage, for your children to be covered. These credits are earned by working a job that takes Social Security taxes out of your paycheck, and can only be earned at a rate of four per year. In other words, you would have to work for at least a year and a half before earning the mandated number of credits.
A Personal Earnings and Benefit Estimate Statement (or PEBES) from the Social Security Administration will tell you whether or not your children qualify for coverage. To request one, call (800) 772-1213 or go online to ssa.gov for information. A PEBES will also tell you how much any survivors could receive, calculated by your earnings record as it stands presently.
Could my Social Security benefits count as taxable income?
If your MAGI, or modified adjusted gross income, when added to half of your Social Security benefits, exceed a certain limit, then they may in fact be taxed. Your MAGI consists of your adjusted gross income (such as wages, interest, taxable pensions, dividends and other sources), tax-exempt interest income (such as that accumulated from qualifying U.S. savings bonds or municipal bonds), or amounts earned in a foreign country or other territory exempt from taxation.
If this amount exceeds $25,000 for an individual filing of any sort, or $32,000 if you are married and filing jointly, up to 50% of your benefits could be subjected to income taxes. Additionally, if the amount exceeds $34,000 for individuals and $44,000 for jointly filing married couples, up to 85% is taxable. And unless you and your spouse are living apart the entire year, you will still be taxed according to these rules, even if you file separately.
For more information, contact the IRS (Internal Revenue Service) at irs.gov or (800) 829-1040, and request Publications 544 and 915. Or talk with a tax professional or accountant that you trust.
How much will Social Security pay me when I retire?
What you will receive from Social Security depends on how long you worked under the system, with up to 35 of your highest-earning years counting toward the average yearly earnings that will ultimately determine your benefits.
The amount will also depend on when you start to receive benefits – the earlier that happens, the lower that amount will be. Also, the amount can fluctuate depending on whether or not you work after retirement, other members of your family receive benefits based on your earnings, you collect government benefits of other sorts, or the cost of living rises.
A Personal Earnings and Benefit Estimate statement, or PEBES, from the Social Security Administration can give you an idea of your impending benefits by roughly calculating all of these factors for you, based on your specific circumstances. Go online to http://www.ssa.gov or call 800-772-1213 for an application.
You can also check the benefits statement sent to you annual by the Social Security Administration, if you’re 25 or older. You’ll be able to keep track of your retirement benefits over the years with these benefits summaries. Just make sure to check your statement for accuracy in regards to your personal information.
What is involved in the process of enrolling in Medicare?
If you’re already receiving benefits through Social Security, or are applying for Social Security, at age 65, then you will automatically be enrolled in Medicare. No matter which scenario fits yours, the Social Security Administration will notify you of when you’re enrolled in the program.
There are, however, different versions of Medicare. Medicare Part A, or hospital insurance, is free, while Medicare Part B, which is medical insurance, comes with premium costs. If you were automatically enrolled into Part B, you will be given a time frame after which you can decline Part B coverage. Even if you decide not to enroll initially in Part B, you can do so during the annual enrollment period, which runs January 1 to March 31 of each year, but at an additional cost (reflected in the higher premium).
If you decide to wait to enroll in Social Security beyond age 65, you can still enroll in Medicare by visiting the local Social Security office, or by phone if visiting the local office is not an option for you. To find out where your local office is located, call the Social Security Administration at (800) 772-1213.
What is Supplemental Security Income?
Supplemental Security Income (SSI for short) is a program that offers an income in the form of cash assistance for those who are aged, blind or disabled. SSI is given based on financial need, offered as a last resort after the applicant has already filed for all other benefits, including Social Security. The eligibility requirements for SSI are similar to those for food stamps and Medicaid, so those applying for one usually qualify for the other two as well.
If you are over the age of 65, or rendered/born either blind or disabled at any age, you can receive SSA as long as your income and other resources stay below a state-set limit.
Contact your local Social Security administration office, or call (800) 772-1213, for details on your state’s requirements, and other information regarding application and qualification for SSI.
Is there any way for me to receive disability benefits through Social Security?
The short answer is yes, you can get disability from Social Security. However, it is a two-step process in order to do so.
The process begins when the Social Security Administration, or SSA, decides whether or not you’re eligible for their disability benefits, based on how long you’ve worked and paid Social Security taxes. Then, you’ll have to provide the names, addresses and telephone numbers of any physicians, hospitals and clinics that helped treat you for your disability, as well as other requested information. The SSA will also want your Social Security number, proof of age, and your most recent W-2 form (or most recent tax return, if you’re self-employed).
Should you be approved, your first check will be dated approximately five to six months from the date the disability occurred, and will only handle a portion of your lost income. The definition of disability in the eyes of the SSA is rather strict – you must have a medically defined impairment that prevents you from work for at least a year, or is expected to result in death. About 50%-75% of applications are denied disability through the SSA because they do not meet their guidelines for disability. Should your claim be among those denied, you can begin the appeal process within 60 days. Some even hire attourneys who specialize in disability cases to assist in the appeal.
If you do receive disability benefits and are either married or caring for a child, some family may also qualify for benefits. And if the SSA terminates your coverage, you can request a reinstatement for up to six months.
Would it be wiser to wait until my full retirement age to start collecting Social Security, or could I retire at age 62 and do so?
It may ultimately be more profitable for you to start collecting at 62, even though the checks you would receive if you waited would be about 20% larger. This is because you’ll receive 12 more checks times times the amount of years you wait, and those checks will add up to your benefit.
The Social Security Administration has even stated that, in order to recover the benefits you would have acquired in those additional years, you would have to collect until age 77.
There are some benefits to waiting, though. Those additional years will give you a chance to increase your retirement benefit, especially if you’re earning more at that time than at any other, since your benefit is calculated using your top 35 earning years. And if you don’t have much in the way of savings for your retirement years, you’ll want to get as much from Social Security as possible.
Is there a way to find out an estimate of the benefits I’ll receive through Social Security?
All workers who have reached the age of 25 – and all those beyond – not yet receiving Social Security will receive Social Security Statements, detailing their earnings and benefits. Yours will arrive annually, about three months before the month in which you were born, and will offer estimates of retirement, disability and survivor benefits that both you and your family could potentially receive.
Look over your report carefully to confirm your personal and work information, especially the years you’ve worked.
If you’re pressed for time, or simply don’t wish to wait, you can obtain a Personal Earnings and Benefit Estimate Statement from the Social Security Administration. To do so, call 800-772-1232 or go to their Web site at http://www.ssa.gov.
