Social Security benefits are a significant part of most Americans’ retirement income. You may be aware that Social Security provides monthly payments to retired workers, dependents, and survivors. However, you should know many other things about your Social Security benefits before retiring or deciding on when to claim them. Here are some facts you should know about the program:
Social Security is Not Just for Retirees
Did you know that Social Security also provides benefits to workers who are disabled? In fact, one in four of all Social Security beneficiaries is receiving disability benefits.
You Can Claim Social Security Benefits at Any Age
You don’t have to retire at age 65 to start receiving benefits. You can claim Social Security benefits as early as age 62 or as late as age 70. The amount of your monthly payment will be based on your lifetime earnings and when you file for benefits.
Your Social Security Benefits May Be Taxable
Depending on your income, a portion of your Social Security benefits may be taxable. If your combined income (your adjusted gross income plus one-half of your Social Security benefits) is between $25,000 and $34,000 as a single filer or between $32,000 and $44,000 as a joint filer, up to 50 percent of your benefits could be taxable. If you are married and file a separate return, you may have to pay taxes on your benefits no matter how much money you make.
Your Spouse May Qualify You for Social Security Benefits Even if You Have Never Worked
If you are married and your spouse dies, you may be eligible for Social Security benefits based on your spouse’s work record. To qualify, you must have been married to your spouse for at least nine months, be age 60 or older (or disabled), and not be currently married. You may also be able to receive survivor benefits if you were divorced from your spouse and meet specific requirements.
You May Be Eligible for Supplemental Security Income (SSI)
If your income is low and you don’t have enough work credits to qualify for Social Security benefits, you may be eligible for Supplemental Security Income (SSI). SSI is a federal program that provides monthly payments to low-income seniors, disabled adults, and children. To be eligible, you must have limited income and assets and be unable to work because of a disability.
You Can Work and Still Collect Social Security Benefits
You don’t have to stop working just because you start receiving Social Security benefits. In fact, you can continue to work and earn up to $18,960 per year without affecting your benefits. If you earn more than that, your benefits will be reduced by $1 for every $2 you earn over the limit. However, suppose you are younger than full retirement age (currently 66). In that case, Social Security will deduct $1 from your benefits for every $3 you earn over the limit until your benefit amount is reduced to zero.
Your Social Security Benefits Could Be Garnished if You Owe Money
Social Security benefits can be subject to garnishment or seizure by creditors if you owe back child support, delinquent federal taxes, defaulted student loans, or past-due state income taxes. For the government to garnish your benefits, it must first get a court order. The maximum amount that can be garnished is 25 percent of your monthly benefit amount.
The Law Offices of Lisa Douglas is ready to help you with your legal needs. The firm handle all types of cases, including social security disability claims, criminal law, personal injury cases, and others. The firmis always eager to take on new clients who want experienced representation for their individual cases. Contact us today! If you need a lawyer or an attorney in Arkansas.
