What Other Purposes Can An Itin Serve
- Opening an interest-bearing bank account. Individuals who do not have a SSN but do have an ITIN may be able to open interest-bearing accounts.
- Securing a drivers license. Some states have allowed the ITIN to be used instead of a SSN in order to receive a drivers license, drivers permit, or state identification card.
- Providing proof of residency. At some point in the future, an immigrant may need to prove how long he or she has been in the United States and having a tax return filed using an ITIN is one way to show that.
Do We Pay Death Benefits
A one-time lump-sum death payment of $255 can be paid to the surviving spouse if they were living with the deceased. If living apart, they were receiving certain Social Security benefits on the deceaseds record.
If there is no surviving spouse, the payment is made to a child who is eligible for benefits on the deceaseds record in the month of death.
Claiming Early Or Late
Your spousal benefit is based upon your partner’s “normal” benefit amount. But the amount you receive will depend upon when you begin to claim it.
You can claim spousal benefits as early as age 62, but you won’t receive as much as if you wait until your own full retirement age. For example, if your full retirement age is 67 and you choose to claim spousal benefits at 62, you’d receive a benefit that’s equal to 32.5% of your spouse’s full benefit amount.
The amount increases with each year you delay. At your full retirement age you’d be eligible for the maximum, which is 50% of your spouse’s full benefit.
Notably, spousal benefits are not reduced if the spouse is caring for a child who qualifies under the age or disability rules. Spousal benefits can never exceed 50% of the other spouseâs full benefit. So, there is no incentive to file for spousal benefits later than your own full retirement age.
An ex-spouse may be eligible for spousal benefits even if the former spouse hasn’t retired yet.
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Lost Or Stolen Federal Payments
Report your lost, missing, or stolen federal check to the agency that issued the payment. It’s usually one of these paying agencies. If your documentation indicates it’s a different agency, and you need its contact information, look in the A-Z Index of U.S. Government Departments and Agencies.
To get an update on your claim, contact the Treasury Department Philadelphia Financial Center at 1-855-868-0151, option 1.
Can I Collect My Ex
You might be able to get your ex-spouses Social Security benefits. But you must meet several qualifications before you can start receiving benefit checks.
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No surprise here: A divorce typically affects a couple’s finances. You may not be aware of one of the potentially positive effects, though. It turns out, you may be entitled to your ex-spouse’s Social Security benefits, which could add up to thousands of dollars a year. Those benefits are available only under certain conditions, however.
Here’s how to find out whether you can claim those benefits.
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How Much Social Security Can Spouses Get
When a married person claims Social Security benefits, they will either receive their own benefit based on their working history or up to 50% of their spouse’s benefit, whichever is greater.
To receive the maximum Social Security spousal benefit, a person must reach their full retirement age, not be earning income from a job, and be married to someone who is receiving a Social Security benefit greater than the amount they are eligible for. In this case, the lower-earning spouse can receive exactly half of their partner’s benefit in perpetuity.
If they have not yet reached their full retirement age and wish to begin claiming benefits as soon as their spouse is eligible, their monthly payout will be reduced below 50% of their spouse’s.
Divorcées who were married to the worker for at least 10 years, have not remarried, and are at least 62 years old can also claim half of the full retirement amount of their ex-spouse, but they don’t have to wait for their former spouse to claim benefits if they’ve been divorced for at least two years. Any amount of Social Security claimed by an ex-spouse will have no effect on the amount a current spouse can claim.
While delaying Social Security will incrementally increase benefits for the worker up until age 70, the largest possible monthly benefit for a spouse or ex-spouse is always 50% of the worker’s benefit amount at their full retirement age there are no increases for spousal benefits when the worker delays claiming their own benefit.
The Claim: The Social Security Administration Will Allow Workers In The Country Illegally To Claim Benefits
In a post rapidly gaining traction on Facebook, a user warns that if not stopped, the Social Security Administration will soon eat into the fund to provide benefits for some immigrants.
SOCIAL SECURITY ADMIN plans to pay SS benefits to ILLEGALS from your SS TRUST FUND! Must be STOPPED! the March 3 post reads. It has been shared over 2,300 times.
The creator of the post, Connie M. Giordano, said that a group called the Seniors Coalition sent her a letter with this claim.
It makes sense why there may be concern about excess demands on the Social Security fund: It provides 1 in 4 Americans with 90% of their income or more, and over 50% of income for half of all seniors, according to the Center on Budget and Policy Priorities. But experts have predicted that with the aging of baby boomers, the fund could run out of its reserves by 2034, leaving beneficiaries with smaller monthly payments.
However, the claim is baseless.
Far from draining Americans Social Security resources, immigrants who are in the U.S. illegally contribute much more to the program than they claim each year. Though there are ways they can claim benefits through illegitimate or expired Social Security numbers, that practice is not widespread.
In addition, there are no proposed changes, either from the Social Security Administration or the Biden administration, that would change the way the agency allocates its funds to workers in the country illegally.
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If You’re Not Sure Why You Received A Payment
If you receive a check or direct deposit payment from the Treasury Department and do not know what its for, contact the regional financial center that issued it. Only the agency that authorized the payment can explain why you received it.
If you received a check, look for the RFCs city and state at the top center. Then contact that RFC to find out which federal agency authorized the payment. It will be one of these:
If you received payment byelectronic funds transfer , or direct deposit, follow the directions under Find Information About a Payment.
Use the Treasury Check Verification System to verify that the check is legitimate and issued by the government.
You Can Undo A Social Security Benefits Claiming Decision
There arent many times in life you can take a mulligan. But Social Security offers you the chance for a do-over. Lets say you claimed your benefit, but now regret the decision and wish you had waited. During the first 12 months of claiming benefits, you can withdraw your application. You will have to repay all of the benefits youve received, along with any spousal benefits, but when you restart benefits, youll receive a larger amount, just as you would have if you had delayed filing in the first place.
If it has been more than 12 months since you filed for Social Security, you cant withdraw your application and restart benefits at a later date. But early retirees who have returned to the workforce are not totally out of luck: Once you reach full retirement age, you can suspend benefits until age 70. This will enable you to earn delayed-retirement credits of 8% a year . This can add up to tens of thousands of dollars for many people, says William Meyer, chief executive of Social Security Solutions.
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Beware The Social Security Earnings Test
Bringing in too much money in earned income can cost you if you continue to work after claiming Social Security benefits early. With what is commonly known as the Social Security earnings test for annual income, you will forfeit $1 in benefits for every $2 you make over the earnings limit, which in 2022 is $19,560. Once you are past full retirement age, the earnings test no longer applies, and you can make as much money as you want with no impact on benefits.
Any Social Security benefits forfeited to the earnings test are not lost forever. At your full retirement age, the Social Security Administration will recalculate your benefits to take into account benefits lost to the test. For example, if you claim benefits at 62 and over the next four years lose one full years worth of benefits to the earnings test, at a full retirement age of 66 your benefits will be recomputed and increased as if you had taken benefits three years early, instead of four. That basically means the lifetime reduction in benefits would be 20% rather than 25%.
What Happens If There’s Another Ex
If there’s more than one ex-spouse in the picture, both you and any other former spouse might qualify for benefits based on the earnings record of the mutual ex-spouse.
It isn’t a matter of who gets there first you and all former spouses are entitled to the individual’s Social Security regardless of who has or hasn’t applied for themor when the benefits were applied for.
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Report The Death Of A Social Security Or Medicare Beneficiary
You must report the death of a family member receiving Social Security or Medicare benefits. The Social Security Administration processes death reports for both. Find out how you can report a death and how to cancel benefit payments. In addition to canceling SSA and Medicare benefits, find out what other benefits and accounts you should cancel.
How To Apply For Social Security Benefits As An Ex
Follow these steps to apply for Social Security benefits as an ex-spouse:
Keep in mind that you can’t apply for benefits online if you’re a surviving divorced spouse. Instead, you must apply in person.
Social Security Spousal Benefits
Social Security is a vital source of retirement income for most women. For this reason, it is important to understand how the spousal benefit works and how it can impact the amount of Social Security income you receive.
As a spouse, you can claim a Social Security benefit based on your own earnings record, or collect a spousal benefit in the amount of 50% of your spouses Social Security benefit, but not both. You are automatically entitled to receive whichever benefit provides you the higher monthly amount. In order to qualify for Social Security spousal benefits, you must be at least 62 years old and your spouse must also be collecting his or her own benefits. Additionally, if you are the higher earner, your spouse can apply to collect spousal benefits based on your work record. It is important to note that claiming a spousal benefit does not impact the benefit amount received by the worker whose earning record is being used.
Taking Benefits Early
- At age 65, you would receive 45.8% of your spouses benefit.
- At age 64, you would receive 41.7% of your spouses benefit.
- At age 63, you would receive 37.5% of your spouses benefit.
- At age 62, you would receive 35% of your spouses benefit.
Recent Changes to Claiming Strategies that Affect Spousal Benefits
Applying for Benefits
How Much Social Security Can Spouses And Ex
If you’re married, your spouse could help you score a bigger Social Security check. Even if you’re divorced, your ex-spouse could help you land a higher benefit.
The reason: Social Security retirement benefits are based on your 35 highest-earning years of work. But if you qualify for spousal benefits, Social Security will base your benefit on your current or former spouse’s work record instead. Keep reading to learn how much you could squeeze out of spousal benefits in 2023.
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How Much Do You Get From The Spousal Social Security Benefit
As a spouse, you can claim a Social Security benefit based off your own earnings, as well as you collect the spousal benefit, which can provide up to 50% of the full retirement age of your spouses Social Security benefit. The Social Security website can help you determine what your FRA, as it depends on your year of birth.
If you file before you reach your own FRA, your spousal benefit will be reduced because you are filing early. Basically, there is more flexibility and a better benefit if you wait until your full retirement age, which ranges from age 65 to age 67.
You are automatically entitled to receive either a benefit based on your own earnings or a spousal benefit based on your spouses or ex-spouses earnings. Social Security calculates and pays the higher amount.
For example, if you have reached full retirement age, you can file a restricted application to claim spousal benefits. This application allows you to receive spousal benefits while allowing your own Social Security benefits to grow until you reach the maximum amount at age 70.
There are Social Security laws and specifics based on your birthdate, so its important to do your research on when you can claim benefits. Careful timing allows you more Social Security benefit during retirement years.
What Is A Social Security Card
Your Social Security card is an important piece of identification. You’ll need one to get a job, collect Social Security, or receive other government benefits.
When you apply for a Social Security number , the Social Security Administration will assign you a nine-digit number. This is the same number that is printed on the Social Security card that SSA will issue you. If you change your name, you will need to get a corrected card.
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Types Of Social Security Benefits
The Social Security Administration runs several different benefits programs. In addition to benefits for retirees and their spouses, it provides survivor benefits for the spouses and children of deceased workers, Social Security Disability Insurance for disabled workers, and Supplemental Security Income for older and disabled people with little to no income or financial assets.
Eligibility requirements for these programs differ, but except for SSI, most require that the worker have earned at least 40 Social Security work credits. That equates to 10 years of covered work in the U.S.
Why It Makes Sense For The Higher Earner To Wait Longer To Collect
David and Linda are married. David’s primary insurance amount at full retirement age is $1,600 Linda’s is $1,450. They both have an FRA of 67.
If they both wait until 68 to collect, which means their benefits will increase by 8%, David’s benefits will be $1,728 , and Linda’s will be $1,566 .
That extra $12 per month means an extra $144 per year, or $2,880 over 20 years.
In addition, the spouse who lives longer will continue to collect the higher payments.
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Your May Have To Pay Taxes On Social Security Benefits
Most people know that Social Security is funded by a tax on earnings, currently 6.2% for the employee . But some retirees dont realize that you may well have to pay income tax on Social Security benefits when it comes time to claim them. Benefits lost their tax-free status in 1984, and the income thresholds for triggering tax on benefits havent been increased since then.
It doesnt take a lot of income for your Social Security benefits to be taxed. Your benefits wont be taxed if your provisional income is less than $25,000 if youre single or $32,000 if youre married. If youre single and your provisional income is between $25,000 and $34,000, or married filing jointly with provisional income between $32,000 and $44,000, up to 50% of your Social Security benefits may be taxable. If your provisional income is more than $34,000 on a single return or $44,000 on a joint return, up to 85% of your benefits may be taxable.
The Social Security Administration says about 40% of beneficiaries pay taxes on their benefits. Since the thresholds arent adjusted for inflation, the number of beneficiaries who pay taxes on Social Security benefits increases every year. The Social Security Trustees annual report estimates that taxes on Social Security will total $45.1 billion in 2022, up from $34.5 billion in 2021.
You may also have to paystateincome taxes on your Social Security benefits. See our list of the 12 States That Tax Social Security Benefits.