Are Social Security Checks Retroactive
You may be able to collect Social Security Benefits up to 6 months prior. However, if you choose to collect retroactive Social Security benefits you will lose any credits you earned during those months from delaying your retirement.
For example, say you wait until 70 years old to retire. However, when applying for your Social Security Retirement benefits, you decide to collect retroactive benefits, you will lose the benefits increase you previously received during those months.
So if you had received a 1.1% increase for each month you delay retiring, you will lose that payment increase for the months you receive a retroactive payment.
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How Much Work Do You Need
In addition to meeting our definition of disability, you must have worked long enough and recently enough under Social Security to qualify for disability benefits.
Social Security work credits are based on your total yearly wages or self-employment income. You can earn up to four credits each year.
The amount needed for a work credit changes from year to year. In 2022, for example, you earn one credit for each $1,510 in wages or self-employment income. When you’ve earned $6,040 you’ve earned your four credits for the year.
The number of work credits you need to qualify for disability benefits depends on your age when your disability begins. Generally, you need 40 credits, 20 of which were earned in the last 10 years ending with the year your disability begins. However, younger workers may qualify with fewer credits.
For more information on whether you qualify, refer to How You Earn Credits.
How To Calculate Social Security Benefits
Lets say your FRA is 66. If you start claiming benefits at age 66 and your full monthly benefit is $2,000, then youll get $2,000 per month. If you start claiming benefits at age 62, which is 48 months early, then your benefit will be reduced to 75% of your full monthly benefitalso called your primary insurance amount. In other words, youll get 25% less per month, and your check will be $1,500.
That reduced benefit wont increase once you reach age 66. Rather, youll continue to receive it for the rest of your life. It may go up over time due to cost-of-living adjustments , but only slightly. You can do the math for your own situation using the Social Security Administration Early or Late Retirement Calculator, one of a number of benefits calculators provided by the SSA that can also help you determine your FRA, the SSAs estimate of your life expectancy for benefit calculations, rough estimates of your retirement benefits, individualized projections of your benefits based on your personal work record, and more.
Although the cost-of-living adjustments announced each year are usually only slight increases, Social Security benefits will increase by 5.9% in 2022, marking the largest increase since 1982.
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Is Social Security Taxable
It depends on your income. Youll be taxed on up to 50% of your benefits if your income is $25,000 to $34,000 for an individual, or $32,000 to $44,000 for married couples filing jointly, according to AARP. Up to 85% of your benefits are taxable if your income is more than $34,000 for an individual or $44,000 for a married couple.
How Long Does It Take To Get Approved For Social Security
Its important that you plan for when you want your benefits to start. They are not turned on like a water faucet. If youre claiming Social Security retirement benefits, plan on at least six weeks for your application to be processed. However, if your application has incorrect information or the agency is backlogged, it could take up to three months before benefits begin, warns AARP. However, you cannot apply for benefits more than four months before you want them to begin, according to the Social Security Administration.
So its a good idea to start the application at least three months before you want your benefits to start. Otherwise, you may end up with a deficit in your finances during the transition period.
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What Happens When You Withdraw Your Application
There are a few things to know before deciding to withdraw your application.
- Anyone else who receives benefits based on your application must consent in writing to the withdrawal.
- You must repay all the benefits you and your family received from your retirement application. This includes:
- Benefits your spouse or children received, whether they live with you or not.
- Money withheld from your Social Security retirement checks for:
- Medicare Part B, Part C, and Part D premiums.
- Voluntary tax withholding of federal income taxes for closed tax years. Contact the Internal Revenue Service or your tax advisor about any tax implications.
- If you are already entitled to Medicare, you may choose to also withdraw your Medicare coverage.
If you are also entitled to railroad or veterans benefits, you should check with the Railroad Retirement Board and the Department of Veterans Affairs about how your withdrawal affects those benefits. The RRB and the VA make their own determinations and are responsible for their own programs.
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Social Security Benefits For Workers Turning 60 In 2020 Will Very Likely Drop Due To The Coronavirus Pandemic
Congress could pass legislation that would prevent this outcome.
As a result of the COVID-19 pandemic, about 3 million retired workers who turn 60 years old in 2020 will very likely have much lower lifetime Social Security benefits than previously expected. Without legislative changes, the average earner stands to lose nearly $1,500 per year for the rest of their life. Fortunately, there is a simple legislative changeexplored in detail belowthat would fix these problems without lowering the benefits of any other cohort of retirees. Chairman of the U.S. House Ways and Means Social Security Subcommittee, Rep. John Larson , has introduced such legislation*and Congress should fix this situation as soon as possible.
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The Easiest Way To Apply For Retirement Benefits Is Online
There are a few ways you can apply for retirement Social Security benefits: Online at ssa.gov, in person at your local Social Security office, or over the phone by calling 800-772-1213.
If you’re ready to retire and start receiving a Social Security check, first make sure that you’re eligible to apply for benefits. You must be a maximum of three months away from your 62nd birthday, and you must also be ready to start taking your benefits within the next four months.
How To Apply Online For Just Medicare
Are you within three months of turning age 65 or older and not ready to start your monthly Social Security benefits yet? You can use our online retirement application to sign up just for Medicare and wait to apply for your retirement or spouses benefits later. It takes less than 10 minutes, and there are no forms to sign and usually no documentation is required.
To find out what documents and information you need to apply, go to the .
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Social Security Disability Insurance
For SSDI, the document requirements are considerably broader and the application is lengthier. Along with the usual personal data , youll need to provide extensive documentation of your medical history and treatment and file an Adult Disability Report.
The SSDI process also includes an interview, in person or by phone. Youll find detailed information in Social Securitys Adult Disability Starter Kit.
When you can file: There is no minimum age for SSDI but you must have done at least some work in which you acquired Social Security credits.
Where to file:Online, by phone or in person.
Records Pertaining To Spouses
If you plan to apply for spousal benefits from the Social Security Administration, there will be specific documents that need to be submitted. You will need to show that you are married before anything else. This can often be done through the use of your birth certificate, a photo ID, and a marriage license.
Those who have lost their marriage license can ask for a replacement to meet these requirements. Get in touch with the register of deeds in the county where your marriage took place. If you plan to apply for spousal benefits from an ex-spouse, you will need to have access to the appropriate divorce records. If these arent available, replacements can be provided from the county offices where the divorce occurred.
For individuals applying for Social Security survivor benefits, you will need to show a copy of your spouses death certificate. You will also need to provide this persons Social Security number. If you do not have the death certificate in your possession, the vital records office in the county of the death can provide you with one.
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Why Did I Get Two Social Security Checks This Month
If youre owed back payments, you could get two checks, according to GOBankingRates, a personal finance website. Also, if you receive either retirement or disability benefits, as well as Supplemental Security Income, or SSI, because your income is below certain thresholds, you also could receive two payments.
Wait Time For Decisions And Hearings
The amount of time it takes for an application to be approved or denied varies, depending on whether it is an initial decision or a decision based on an appeal. In fiscal year 2019, it took an average of 120 days for SSA to make an initial determination on a disability claim. The figure increased following the COVID-19 pandemic and, for months in fiscal year 2021, the average wait time for an initial decision is 165 days.
The high number of cases and long wait times for a hearing before an Administrative Law Judge has drawn significant attention from Congress in recent years. Congress provided additional funding for this workload and the number of cases and wait times have declined. In fiscal year 2020, the average wait time for a hearing was 386 days .
For some cases, SSA will expedite disability determinations. These include Quick Disability Determination and Compassionate Allowance cases. These are cases where statistical models or medical diagnoses indicate the person has an extremely severe medical condition. These cases can often be processed in under 30 days. Additionally, many cases involving military veterans are expedited.
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Can You Do Any Other Type Of Work
If you cant do the work you did in the past, we look to see if there is other work you could do despite your medical impairment.
We consider your medical conditions, age, education, past work experience, and any transferable skills you may have. If you cant do other work, well decide you qualify for disability benefits. If you can do other work, well decide that you dont have a qualifying disability and your claim will be denied.
Qualifying For Retirement Benefits
Retirement benefits, like SSI and SSDI, are a type of monthly payment paid to eligible Americans by the SSA. Once you have amassed enough work credits, paid into Social Security through federal taxes, and reached age 62, you can begin collecting retirement benefits. The amount of your monthly benefit depends on how much you worked, how much money you made, and whether you decide to keep working past the age of 62.
If you wait until your full retirement age , your monthly benefit will increase. And, if you are able to and decide to keep working until you are 70 years old, you can maximize your monthly retirement benefits. Once you begin receiving retirement benefits, you will continue to receive them for the rest of your life.
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How To Stop Social Security Check Payments
The SSA can not pay benefits for the month of a recipients death. That means if the person died in July, the check received in August must be returned. Find out how to return a check to the SSA.
If the payment is by direct deposit, notify the financial institution as soon as possible so it can return any payments received after death. For more about the requirement to return benefits for the month of a beneficiarys death, see the top of page 11 of this SSA publication.
Family members may be eligible for Social Security survivors benefits when a person getting benefits dies. Visit the SSAs Survivors Benefits page to learn more.
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Adults With A Disability That Began Before Age 22
An adult who has a disability that began before age 22 may be eligible for benefits if their parent is deceased or starts receiving retirement or disability benefits. We consider this a “child’s” benefit because it is paid on a parent’s Social Security earnings record.
The Disabled Adult Child who may be an adopted child, or, in some cases, a stepchild, grandchild, or step grandchild must be unmarried, age 18 or older, have a qualified disability that started before age 22, and meet the definition of disability for adults.
Example
It is not necessary that the DAC ever worked. Benefits are paid based on the parent’s earnings record.
- A DAC must not have substantial earnings. The amount of earnings we consider substantial increases each year. In 2022, this means working and earning more than $1,350 a month.
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A You Can Continue Working And Start Receiving Your Retirement Benefits
If you start your benefits before your full retirement age, your benefits are reduced a fraction of a percent for each month before your full retirement age.
You can get Social Security retirement benefits and work at the same time before your full retirement age. However your benefits will be reduced if you earn more than the yearly earnings limits.
After you reach your full retirement age, we will recalculate your benefit amount to give you credit for any months you did not receive a benefit because of your earnings. We will send you a letter that explains any increase in your benefit amount.
If you delay filing for your benefits until after full retirement age, you will be eligible for delayed retirement credits that would increase your monthly benefit. If you also continue to work, you will be able to receive your full retirement benefits and any increase resulting from your additional earnings when we recalculate your benefits. Once you reach full retirement age, your earnings do not affect your benefit amount.
If you start receiving retirement benefits before age 65, you are automatically enrolled in Original Medicare when you turn 65. If you or your spouse are still working and covered under an employer-provided group health plan, talk to the personnel office before signing up for Medicare Part B. To learn more, read our Medicare publication.
What We Will Ask You
If the worker is deceased, we will also ask you:
- The worker’s date of birth and his or her name at birth
- The worker’s date of death and the place of death
- The State or foreign country of the worker’s fixed permanent residence at the time of death
- Whether the worker was unable to work because of illnesses, injuries or conditions at any time during the 14 months before his or her death.
- Whether the worker was in the active military service before 1968 or ever worked for the railroad industry.
- Whether the worker earned Social Security credits under another country’s Social Security system
- Whether the worker was employed or self-employed in all years from 1978 through last year
- How much the worker earned in the year of death and the year before death
- Whether the worker ever filed for Social Security benefits, Medicare or Supplemental Security Income. and
- Whether each child was living with the worker at the time of death.
Depending on the information you provide, we may need to ask other questions.
Note
You also should have with you your checkbook or other papers that show your account number at a bank, credit union or other financial institution so you can sign up for Direct Deposit, and avoid worries about lost or stolen checks and mail delays.
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How Much Social Security Will I Get
SSA calculates your benefit based on the monthly average of up to 35 of your highest earning years rather than, say, your last five years. The earnings are indexed to the change in overall wage levels and the rise in the nation’s standard of living while you were employed. Your future benefits thus will reflect that rise.
A Social Security calculator can help you figure out your benefits.
When checking whether your earnings record is correct or not, keep in mind theres no statute of limitations on correcting errors related to wages, according to Kurt Czarnowski, a principal at Czarnowski Consulting.
A person needs to provide proof of what the correct amount of earnings was, Czarnowski said at a recent National Association of Personal Financial Advisors conference. But even if it’s something back in 1976, if happen to have W-2, can make that correction.
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Also, be aware that someone who chooses to draw benefits at the earliest possible age 62 would see their payment reduced by as much as 30%. By contrast, workers who delay retirement past their full-retirement age 66 or 67 for most people would see an 8% increase in benefits for each year they wait until 70.
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