Social Security 1-800-772-1213 (TTY 1-800-325-0778)

 

September 8, 2009

Question:
Is it true that if you have low income you can get help paying Medicare premiums?

Answer:
Yes.  If your income and resources are limited, your state may be able to help with your Medicare Part B premium, deductibles, and coinsurance amounts. 

State rules vary on the income and resource limits that apply.  Contact your state or local medical assistance, social services or welfare office, or call the Medicare hotline, 1-800-MEDICARE (1-800-633-4227) and ask about the Medicare Savings Programs.  

If you have limited income and resources, you also may be eligible for help paying for prescription drug coverage under Medicare Part D.  Call Social Security at 1-800-772-1213 or visit any Social Security office and ask about extra help paying for Medicare prescription drug coverage.  (TTY users should call 1-800-325-0778.)

Online information is available at http://www.medicare.gov and at http://www.socialsecurity.gov.

Question:
The current economy is forcing me to re-evaluate my retirement plans.  I am not sure if I should start benefits at age 62 or if I should work longer and apply at age 66. How would this impact my Social Security benefit? Is the increase worth the wait to apply?

Answer:
As most workers know, your choice of a retirement age - from 62 to 70 - can dramatically affect your monthly Social Security benefit amount.

If you choose to start receiving benefits early, the monthly payments will be reduced based on the number of months you receive benefits before you reach your full retirement age. The rate of reduction will depend on the year you were born.  The maximum reduction at age 62 will be 25 percent for people born between 1947 and 1958 and 30 percent for people born after 1959.

If you wait until your full retirement age, your benefits will not be reduced. 

And if you should choose to delay retirement, your benefit will increase up to eight percent a year from your full retirement age until age 70.  However, there is no additional benefit increase after you reach age 70, even if you continue to delay taking benefits.

Social Security has an online calculator that can provide immediate retirement benefit estimates to help you plan for your retirement.  The online Retirement Estimator uses information from your own earnings record, and lets you create “what if” scenarios. 

You can, for example, change your “stop work” date or expected future earnings to create and compare different retirement options. To use the “Retirement Estimator”, visit http://www.socialsecurity.gov/estimator.

Read “When To Start Receiving Retirement Benefits” at www.socialsecurity.gov/pubs/10147.html. Retirement decisions are unique to everyone.  Make sure you are up to date with the important information you will need to make the choice that is right for you.

Aug. 28, 2009

Question:
My husband will start his Social Security at age 62. At that time our son will be 15. Will our son qualify for benefits?

Answer:
To get benefits, a child must have a parent who is disabled or retired and entitled to Social Security benefits; or died after having worked long enough in a job where he or she paid Social Security taxes.

The child also must be unmarried and younger than age18. If the child is 18-19 years old, they must be a full-time student (no higher than grade 12). A child who is 18 or older and disabled may also qualify for benefits on the record of a parent. The disability must have started before age 22.

Within a family, a child may receive up to one-half of the parent’s full retirement or disability benefit, or 75 percent of the deceased parent’s basic Social Security benefit. 

However, there is a limit to the amount of money that can be paid to a family.  The maximum family payment can be from 150 to 180 percent of the parent’s full benefit amount.  If the total amount payable to all family members exceeds this limit, each child’s benefit is reduced proportionately until the total equals the maximum allowable amount.

If you have minor children, you will want to read Social Security’s online publication, “Benefits for Children” at www.socialsecurity.gov/pubs/10085.html.

Question:
I do not remember receiving my Social Security Statement earlier this year. How can I get one?

Answer:
You can request one from Social Security — and the easiest way to do that is online.

Just visit www.socialsecurity.gov/mystatement and select the “Need to request a Statement?” banner.

You’ll need to fill in the following information to make your request: your name as shown on your Social Security card, your Social Security number, your date of birth, your place of birth, and your mother's maiden name-last name only.

You also can provide the following information to make your estimate more accurate. Give us your last year’s earnings and an estimate of your current and future earnings, and the age you plan to stop working. Once you make your request, Social Security will mail you a Statement, which you should receive within two to four weeks.  Give it a careful look to make sure your earnings and information are reported correctly, and contact Social Security if you find anything amiss. After you review your Statement, it is a good idea to keep it with your other important papers.  If you would like to go one step further in your retirement planning, visit our online Retirement Estimator at www.socialsecurity.gov/estimator. You can get an instant estimate of your future benefits based on your earnings record and plug in various retirement age scenarios.

Aug 20, 2009

Question:
I am confused about the benefits I may be able to receive on my husband’s record. Can you tell me about those benefits?

Answer:
If you are a spouse who has not worked or who has worked for very low wages, you could be entitled to a benefit equal to as much as one-half of your retired spouse's full benefit.  

Even if you are divorced, you may be eligible for benefits based on the employment record of your former spouse.  To get benefits on your spouse’s record, you must be at least age 62 or have a qualifying child in your care — a child who is under age 16 or who receives Social Security disability benefits. The amount of your spousal benefit depends on your age at retirement.  

If you begin receiving benefits before full retirement age, your benefits will be permanently reduced in most cases. You also may be eligible for a retirement benefit based on your own earnings.  If that benefit is higher than the spousal benefit, Social Security would pay you the higher benefit. 

We compare which of the two benefits would be more beneficial to you, and discuss the options you have. If you have reached your full retirement age and are eligible for a spouse's benefit as well as your own retirement benefit, you may choose to receive the spouse's benefits only in order to continue accruing delayed retirement credits on your own Social Security record. 

You may then file for benefits at a later date and receive a higher monthly benefit based on the effect of delayed retirement credits. There is a booklet about this subject located on Social Security’s website at http://www.socialsecurity.gov/pubs/10127.html

Question:
It seems difficult to figure out what plan to get for Medicare prescription drug coverage.  What is the easiest way to compare plans?

Answer:
The easiest way to get a handle on Medicare prescription drug plans is to use the Medicare Prescription Drug Plan Finder at www.medicare.gov.  There you can find and compare plans in your area.  Or, you may find it better to get personalized counseling about plans in your area by calling 1-800-MEDICARE (1-800-633-4227).

Aug. 11, 2009

Question:
I understand that Social Security may call Medicare beneficiaries to obtain additional information needed to process the Application for Extra Help with Prescription Drug Costs.  How can beneficiaries know if a call is legitimately from SSA and not part of a scam?

Answer:
Social Security may call if some questions on the application were not answered or if we cannot read the answer.  We may also call to resolve discrepancies between answers on the application and information we receive from other Federal agencies about the applicant's income or resources.

When a Social Security employee calls for more information, he or she shouldn't ask you for bank account numbers, credit card numbers or life insurance policy numbers.  In most cases, a Social Security employee will not ask for a Social Security Number.  

The only time we will do so is if the number on the application is invalid and we need to know the correct number.  A very small number of cases are selected for quality review, and may require a phone call. In the rare instance of a quality review, Social Security may ask beneficiaries or their representatives for some information about bank accounts or life insurance policies.

Before calling you, Social Security will send you an official letter to arrange a telephone interview. You will be asked to confirm the date of your telephone interview by returning an acknowledgement form to Social Security. We include the toll-free number of the SSA employee on the letters we send. We also include the national toll-free number so you can find out if the individual is an SSA employee.

If Social Security calls you, our employees will always identify themselves as Social Security employees and will indicate the purpose of their call. If you receive a call from someone claiming to be a Social Security employee and you are at all suspicious, ask the caller for his or her name, work location, and telephone number. To confirm that the call is legitimate, hang up and call Social Security at 1-800-772-1213.

Question:
If I paid maximum tax and change jobs, should a new employer deduct tax? I worked more than one job during the year and paid too much in Social Security tax. How do I claim a refund?

Answer:
When you have more than one job in a year, each of your employers must withhold Social Security taxes on your wages without regard to what the other employers may have withheld.

You may then end up with total Social Security taxes withheld that exceed the maximum. You can claim a refund of the excess taxes that were withheld on form 1040 when you file your personal income tax return with the Internal Revenue Service.

You should contact the IRS at http://www.irs.gov for more information on how to claim a refund of overpaid Social Security taxes. 

Aug. 6, 2009

Question:
I have been told that I can receive the Social Security check on behalf of my mother. Her health has declined in recent months and I help her with all her bills. What is required?

Answer:
If a loved one, friend or neighbor receives Social Security or Supplemental Security Income (SSI) benefits but is no longer physically or mentally able to take care of his or her financial affairs, you may want to consider becoming a representative payee. 

Then, you will be able to help them with managing their money.  Keep in mind that being a representative payee is not the same as having power of attorney.  Even if you do have power of attorney, you will need to apply to be a representative payee in order to have the benefit payments made to you on the beneficiary’s behalf.

We conduct a careful investigation and appoint a relative, friend or other interested party to serve as the representative payee.  This means that if you agree to be a representative payee and we appoint you, we pay you the person’s benefits to use on his or her behalf.

As a representative payee, you would be responsible for using the benefit payments to help meet the basic needs of the beneficiary.  Primarily, the funds should be used to provide food, clothing, shelter, utilities and other essential needs for the person eligible for benefits.

As a representative payee, you need to be aware of the beneficiary’s needs so you can decide how benefits can best be used for his or her personal care and well-being. Each year, Social Security will mail you a form to account for the benefits you have received.

Learn more by reading our online booklet, A Guide For Representative Payees, available on our website at www.socialsecurity.gov/pubs/10076.html.

Question:
Why is there a five-month waiting period for Social Security disability benefits to begin?

Answer:
The five month waiting period ensures that during the early months of disability, we do not pay benefits to persons who do not have long-term disabilities. 

Social Security disability benefits can be paid only after you have been disabled continuously throughout a period of five full calendar months. Therefore, Social Security disability benefits will be paid beginning with the sixth full month after the date your disability began. 

You are not entitled to benefits for any month in the waiting period. For this reason, a person should apply as soon as possible if they think they may qualify for disability benefits.

You can call 1-800-772-1213 to schedule an appointment or you can apply online at www.socialsecurity.gov.

July 27, 2009

Question:
Is there an increase in premiums if I enroll in Medicare after age 65 and what is a special enrollment period (SEP)?

Answer:
Your premium will be increased if you do not apply at age 65.

Enrollment rules are very strict.

Initially, you have seven months to sign up for medical insurance (Medicare Part B). This seven-month period begins three months before your 65th birthday, includes the month you turn 65 and ends three months after that birthday.

If you enroll during the first three months of your enrollment period, your medical insurance protection will start with the month you are eligible. If you enroll during the last four months, your protection will start one to three months after you enroll.

If you do not enroll during this initial enrollment period, each year you are given another chance to sign up during a general enrollment period from January 1 through March 31. Your coverage begins the following July.

Your monthly premium increases 10 percent for each 12-month period you were eligible but didn't enroll.

There is an exception. If you are covered by an employer or union group health plan through your or your spouse's current or active employment, you may qualify for a special enrollment period (SEP). The special enrollment period is a period of time, during which you may enroll.  If you did not enroll during your initial enrollment period because you are covered under a group health plan based on your own current employment or the current employment of any family member.

The special enrollment period may occur during any month you are covered under a group health plan based on current employment, or during the 8-month period that begins the first full month after employment or group health plan coverage ends, whichever comes first.

Question:
What income counts toward the earnings test limit?

Answer:
For purposes of determining whether Social Security benefits are payable, a person's earnings for a taxable year are the sum of pay for services as an employee plus all net earnings from self-employment (minus any net loss from self-employment) for that year.

Wages for Social Security purposes are gross wages - wages before any payroll deductions for income tax, Social Security tax, dues, insurance, or other deductions by the employer. We use gross wages as the basis for Social Security credit and for determining whether benefits must be withheld because of earnings. Non-work sources of income do not count as wages for the earnings test.

This includes inheritance payments, pensions, income from investments, IRA distributions, interest, 401(k) distributions, or other sources. The Social Security retirement program insures against loss of earnings from work and not against the failure to have investment income.

More information may be found in our publication called "How Work Affects Your Benefits," which is available on the Internet at: http://www.socialsecurity.gov/pubs/10069.html

July 20, 2009

Question:
My last statement from Social Security indicated that I had 36 credits through 2008. So far I have earned about $5,000 this year. Does that give me my remaining credits? If so, at what point would I qualify for Social Security benefits?  

Answer:
If you are paying Social Security taxes on your earnings, then you have already earned enough for four credits in 2009. A credit this year is $1,090 in gross wages covered by Social Security.  If you had 36 credits entering 2009, then you need four more credits to qualify for benefits. 

Although you may have already earned enough for your 4 credits this year, we cannot assign the 40th credit to your record until the actual calendar quarter begins that corresponds to the 40th credit. A person can work and earn enough money to acquire their yearly credits in one day, one week, one month, or over the course of the year. 

It all depends on their salary.

However, for benefit purposes such as in your case, we cannot assign your 40th credit until October 1, 2009. That is because October 1, 2009 is the beginning of the fourth calendar quarter.  Your 37th credit is for the calendar quarter of January through March.  Your 38th credit is for April through June, your 39th credit is for July through September, and the 4oth credit is for October through December. 

As of today, you have 39 credits. 

You may have earned the income for your remaining credit, but we cannot assign your remaining credit until the calendar quarter arrives. Most workers earn their 40 credits long before they reach retirement age.  A person can earn their 40 credits with as little as ten years of work under Social Security covered employment. 

Most people in your situation had other careers where they did not pay into Social Security. When they retire from careers such as civil service, teaching, or other government work, they start working to complete their credits.

Question:
My daughter is receiving survivor’s benefits from Social Security. She will be 18 years old in a couple of months. We received the student/school form that needs to be filled out so her benefits are not stopped. We lost the form and need to get another one. Is it available online?

Answer:
Yes, a downloadable version of the required SSA-1372 form, “Students’ Statement  Regarding School Attendance”, is available at www.socialsecurity.gov/schoolofficials/.   

The form must be completed by the student, certified by the school and returned to Social Security. To ensure that Social Security benefits continue beyond age 18, eligible students must submit the necessary form to school officials to certify they are still in school. 

Otherwise, monthly Social Security checks automatically stop when a student turns 18. About 200,000 students receive Social Security benefits in the United States. 

Some students receive Social Security survivors benefits because a parent is deceased.  Others may get dependent benefits because their parent receives Social Security retirement or disability benefits. 

Benefits for minor children generally continue until age 18 or 19 if they’re still in high school, unless they are disabled and eligible for childhood disability benefits.  In that case, a separate application for benefits is required. 

The website outlines how the process works with instructions on what the student and school official must do to ensure benefits continue past the student’s 18th birthday.  With the appropriate certification, Social Security generally does not stop benefits until the month before the month the student turns 19, or the first month in which he or she is not a full-time student, whichever is earlier.

If you do not have access to the Internet, call Social Security at 1-800-772-1213 (TTY 1-800-325-0778).

July 16, 2009

Question:
How do I get Social Security credit for my military service?

Answer:
Your Social Security benefit depends on your earnings. Generally, the higher your earnings, the higher your Social Security benefit.

Under certain circumstances, special earnings can be credited to your military pay record for Social Security purposes.  The extra earnings are for periods of active duty or active duty for training. These extra earnings may help you qualify for Social Security or increase the amount of your Social Security benefit.

Social Security will add these extra earnings to your earnings record when you file for retirement or disability benefits. You will be asked to provide proof of military service at that time. 

You do not need to take any action prior to applying for your Social Security benefits.  There have been recent articles and emails written on this subject which incorrectly state that a veteran has to request these additional earnings in order to have the extra earnings applied to their military pay record.

Social Security will ask about your military service when you apply for benefits. Upon receiving proof of your military service, SSA will apply the appropriate extra earnings.

Here is another point that needs to be clarified. In all cases, the additional earnings are credited to the earnings that we average over your working lifetime, not directly to your monthly benefit amount. It is also important to understand that you can get both Social Security benefits and military retirement.

Generally, there is no reduction of Social Security benefits because of your military retirement benefits. You will get your Social Security benefit based on your earnings. You can refer to the SSA website for more details about this subject: http://www.ssa.gov/pubs/10017.html

Question:
I was unaware of Social Security’s Retirement Estimator. How long has it been available?

Answer:
It has been a year since Social Security’s Retirement Estimator went online. There are other calculators that are available, but the flexibility of the Estimator adds to its popularity.

The Estimator is so popular, in fact, that people have visited the website more than three million times in the past year. 

You can visit it yourself online at www.socialsecurity.gov/estimator.

The online Retirement Estimator is a convenient, secure and quick financial planning tool that lets workers calculate how much they might expect to receive in Social Security benefits when they retire. 

The attractive feature of this calculator is that it uses your earnings information on file at Social Security, without displaying your personal information.  So you get an instant estimate of your future retirement benefits. 

The Estimator even gives you the opportunity to run personalized scenarios and “what if” situations.  For example, you can change the date you expect to retire or change expected future earnings to create and compare different retirement options. 

This can help you as you plan ahead. To use the Retirement Estimator, you must have enough Social Security credits to qualify for benefits and you must not be receiving benefits currently.

July 7, 2009

Question:
How can I check the status of my benefit application?

Answer:
You can check the status of your pending Social Security application on our website, www.socialsecurity.gov.  It does not matter whether you applied for benefits online, in person, or on the phone.  And it does not matter whether the application is for retirement, disability, survivors or spouse’s benefits. 

You can get instant status on your claim at any computer with Internet access.  It is quick, easy, and secure. Just visit our website and select the “Check the status of your application” link on the upper, left-hand side.  Then enter the Social Security number and the confirmation number, given to you when you applied.  It is that easy. 

While you are online, there are other things you can do.  For example, visit the “Questions” link for answers to hundreds of the most frequently asked Social Security questions.  You also can read our online publications about benefits, which may come in handy as the processing of your application comes near. 

Question:
If I stop working before Social Security retirement age, will it impact my eventual retirement benefits?

Answer:
Yes, it can. Your retirement age is the age at which you begin receiving Social Security retirement benefits. Your stop work age is the age at which you leave the labor force and no longer work. It can affect the amount of your Social Security retirement benefits.

Your retirement benefit is based on your highest 35 years of earnings and your age when you start receiving benefits. If you stop work before you have 35 years of earnings, we use a zero for each year without earnings when we do our calculations to determine the amount of retirement benefits you are due.

Even if you have 35 years of earnings, some of those years may be low earnings years. Those low earnings years will be averaged in, creating a lower benefit than if you had continued to work. So if you stop working early or your earnings decline in the years before starting your Social Security retirement, then each of those years will affect your benefit amount. Is it enough to lose sleep over?

The answer is probably not. Generally, each of those years can reduce your benefit amount by $10 to $20. So if you are 58 years old, and you do not plan to work for the next four years, each of those years can reduce your benefit estimate by about $40 - $80. You can use the Retirement Estimator or Benefit Calculators at www.socialsecurity.gov to get estimates based on your projections, which may or may not include additional years of earnings.

June 29, 2009

Question:
Can I appeal Social Security's decision about the money I owe for the income-related Medicare Part B premium?  If so, how?

Answer:
Yes, you can appeal the decision. You can call us at 1-800-772-1213 and we will send you a form, SSA-561-U2 Request for Reconsideration. When you call, we will tell you what proofs you should submit with your appeal request.

If you need help completing the form, you may schedule an appointment with your local office by calling 1-800-772-1213. If you are deaf or hard of hearing you can call our TTY number, 1-800-325-0778. The Medicare Modernization Act of 2003 changed how Medicare Part B premiums are calculated for some higher income beneficiaries.

The majority of Medicare beneficiaries are not affected. Part B (medical insurance) helps pay for doctors’ services and outpatient care. It also covers other medical services, such as physical and occupational therapy, and some home health care.

For most beneficiaries, the government pays a substantial portion—75 percent—of the Part B standard premium and the beneficiary pays the remaining 25 percent. Since 2007, higher income beneficiaries have been paying a larger percentage of their Part B premium based on income they reported to the Internal Revenue Service (IRS).

In 2009, higher income beneficiaries will pay a monthly premium equal to 35, 50, 65 or 80 percent of the total cost, depending on what they reported to the IRS. However, the law affects less than 5 percent of Medicare beneficiaries, so most people will continue to pay the standard premium without an income-related adjustment.

Question:
When I start receiving benefits, will my benefit amount be the same for the rest of my life?

Answer:
Your benefit amount will not stay the same--generally, the benefit amount increases each year and protects beneficiaries against inflation. Social Security provides an annual cost-of-living increase that is based on the consumer price index.

The 2009 increase for beneficiaries is 5.8 percent. There is another way that your benefit might increase. When you work, you continue to pay Social Security taxes, even though you are receiving benefits. Social Security refigures your benefits to take into account your extra earnings.

If the worker's earnings for the year are higher than the earnings that were used in the original benefit computation, Social Security substitutes the new year of earnings. The higher your earnings, the more your refigured benefit might be. We can't tell you here how much your benefit will increase as each case is different and we recompute your benefit using your lifetime earnings.

You need not take any special action. A recomputation of your benefits will be done automatically in the year following the close of the year in which you worked. We usually complete all recomputations by September of the following year. If you are entitled to a higher benefit, it is retroactive to January of the year after the year when you had the additional earnings.

June 23

Question:
What is the difference between Social Security disability and SSI disability?

Answer:
The Social Security Administration is responsible for two major programs that provide benefits based on disability: Social Security Disability Insurance (SSDI), which is based on prior work under Social Security, and Supplemental Security Income (SSI). 

Under SSI, payments are made on the basis of financial need. Social Security Disability Insurance (SSDI) is financed with Social Security taxes paid by workers, employers, and self-employed persons.  To be eligible for a Social Security benefit, the worker must earn sufficient credits based on taxable work to be "insured" for Social Security purposes. 

Disability benefits are payable to blind or disabled workers, widow(er)s, or adults disabled since childhood, who are otherwise eligible.  The amount of the monthly disability benefit is based on the Social Security earnings record of the insured worker.

Supplemental Security Income (SSI) is a program financed through general revenues.  SSI disability benefits are payable to adults or children who are disabled or blind, have limited income and resources, meet the living arrangement requirements, and are otherwise eligible. 

The monthly payment varies up to the maximum federal benefit rate of $674 in 2009, which may be decreased by countable income and resources. 

Question:
If I remarry, after being married 10 years, which spouse receives benefits?

Answer:
A former spouse can receive benefits under the same circumstances as a current spouse or widow/widower if the marriage lasted 10 years or more. Benefits paid to a surviving divorced spouse will not affect the benefit rates for other beneficiaries.

Please note that in general, a person applying as a widow/widower cannot receive benefits if they remarry before the age of 60 (50 if disabled) unless the latter marriage ends, whether by death, divorce, or annulment. However, remarriage after age 60 (50 if disabled) will not prevent payments on a former spouse's record.

For more information, you may call our toll-free number (1-800-772-1213), and ask for the booklet “What Every Woman Should Know.” You can also view the booklet by going to www.socialsecurity.gov and clicking on the hyper text “Forms and Publications.” 

June 18

Question:
While visiting with my parents over the weekend, we talked about their large medication expenses. Surely there are programs that can help people with their prescriptions. What type of relief does Social Security offer to people like my parents?

Answer:
It is called the Extra Help. You can assist someone in applying for Extra Help with their Medicare prescription drug plan costs.

Anyone who has Medicare can get Medicare prescription drug coverage. Some people with limited income and resources also are eligible for Extra Help to pay for the costs—monthly premiums, annual deductibles, and prescription co-payments—related to a Medicare prescription drug plan. The Extra Help is estimated to be worth an average of $3,900 per year.

Many people qualify for these big savings and do not even know it. To find out if someone is eligible, Social Security will need to know their income and the value of their savings, investments, and real estate (other than their home). To qualify for the extra help, their annual income must be limited to $16,245 for an individual or $21,855 for a married couple living together.

Even if their annual income is higher, they may still qualify for the extra help. For example, their income may be higher if they support other family members who live with them or if they have earnings from work. You can help them apply online at www.socialsecurity.gov.  Just look for the link in the center of the page.

Question:
I stopped work at the end of last year at age 52. I don't expect to work again before I start my Social Security benefits when I turn 62. Will I still get the same benefit amount you showed for age 62 on the Social Security Statement that you recently sent me?

Answer:
Probably not. When we averaged out your 35 highest years of earnings to estimate your benefits on your Statement, we assumed you would continue to work up to age 62, making the same earnings you made last year. If, instead, you have $0 earnings each year over the next 10 years, your average earnings will probably be less and so will your benefit.

You can use our Retirement Estimator or Benefit Calculators to see how this will affect your monthly benefit amount. Simply go to the Retirement tab on the SSA homepage at www.socialsecurity.gov.

June 10, 2009

Question:
What is the earliest age that I can begin receiving retirement benefits?

Answer:
The earliest age at which you can begin getting Social Security retirement benefits is 62. The 1983 Social Security Amendments included a provision for raising the retirement age beginning with persons born in 1938 or later. This change does not affect the minimum age for retirement, which is still age 62.

You will receive a reduced benefit if you elect benefits prior to your full retirement age. Most of today’s retirees (those born between 1943 and 1954) must be age 66 to receive their full benefits.

A person who meets all requirements for entitlement can receive reduced benefits beginning with the first full month that he/she is age 62. Thus, benefits are not paid for the month a person reaches age 62 unless his or her birthday is on the first or second day of the month. 

Under SSA rules a person reaches a given age on the day before his or her birthday. Social Security benefits are paid in the month following the month for which they are due.  

For example, if your 62nd birthday is July 15, your first month of entitlement is August, and you would receive your first check in September.

Question:
What are the pros and cons of taking benefits early instead of waiting to full retirement age?

Answer:
If you retire early, the monthly benefit amounts will be smaller to take into account the longer period you will receive them. If you retire late, you will get benefits for a shorter period of time but the monthly amounts will be larger to make up for the months when you did not receive anything.

There are advantages and disadvantages to taking your benefit before your full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is your benefit is permanently reduced.

Each person's situation is different. Remember that, if you delay your benefits until after full retirement age, you may be eligible for delayed retirement credits up to age 70 that would increase your monthly benefit. 

Keep in mind that there are other things to consider when making the correct decision about your retirement benefits. For example, your earnings from employment will be a factor until you reach full retirement age, so early benefits may not be an option for you.

If you come from a long-lived family, you may need the extra money more in later years, particularly if you outlive other pensions or annuities that have limits on how long they are paid.

Do you have other income to support you if you decide to delay the start of your benefits? If you stop working, not only will you lose your paycheck, but you may also lose valuable health insurance provided by your employer.  Will other family members qualify for benefits on your record?

Lastly, if you decide to delay your benefits until after age 65, you should still apply for Medicare benefits within three months of your 65th birthday. If you wait longer, your Medicare medical insurance (Part B) may cost you more money.

June 4

Question:
With June being National Safety Month, I have decided to learn more about how I can protect myself from identity theft. Since identity theft involves one’ Social Security number, I was hoping you could offer some advice for protecting my number.

Answer:
Here are some tips for protecting your personal information.

Keep your Social Security card at home in a safe place, wherever you keep your important paperwork. Safeguard your number as well. Do not give it to just anyone. Many places you do business with may ask for it as a means of identification even though they can use other identifying information.

Shred before you toss. Identity thieves can rummage through your trash or recycling material and find a goldmine of information. So be sure to destroy any identifying information before you throw it out.

While we are talking about safety, here is another great tip. If you receive a benefit from Social Security, get direct deposit.  With direct deposit, your payments are electronically sent right to your account and there’s no risk of a payment being lost in the mail or stolen from your mailbox.  At Social security, signing up is quick, easy, and secure. 

Visit www.socialsecurity.gov/deposit to learn more. Read our online fact sheet about identity theft at www.socialsecurity.gov/pubs/10064.html. 

If you believe someone may be using your number or identity, you should contact the Federal Trade Commission at www.ftc.gov, or call 1-877-IDTHEFT. Identity theft is one of the fastest growing crimes in America.  Someone illegally using your Social Security number and assuming your identity can be more trouble than a car thief or house burglar. 

Identity thieves can use your number and your good credit score to apply for more credit in your name.  Then, they use the credit cards and do not pay the bills.  You may not find out that someone is using your number until you are turned down for credit or you begin to get calls from creditors demanding payment for items you never bought.

Question:
How long does it take to apply online for retirement benefits?

Answer:
How long it takes depends on your specific situation.  However, many people find that they can complete their online retirement application in as little as 15 minutes!  There are no paper forms to sign, and usually no additional documents are required. 

You can learn more about Social Security retirement benefits, get an estimate of your future benefit amount, and when you’re ready, apply for retirement benefits online, by visiting www.socialsecurity.gov.

May 29, 2009

Question:
I have already submitted my online application for Social Security benefits and I need to make changes or give some additional information. What do I do?

Answer:
You should contact the office that is processing your application and tell them that you wish to change or add some information. You can find the name and address of the appropriate office on the application page called "What's Next," which you should have printed for your records.

If you do not know what office is processing your claim, you may call our toll-free number, 1-800-772-1213 (TTY 1-800-325-0778), Monday through Friday from 7 a.m. to 7 p.m. to speak to a representative. We will take the appropriate action to stop the development and/or payment of any benefits that are a result of the application you filed. We will notify you in writing of any action(s) we take.

Question:
I believe that my Social Security number has been compromised.  May I place a fraud alert on my number?

Answer:
We can understand your apprehension about someone knowing your Social Security number (SSN) but Social Security cannot place a fraud alert on your Social Security number. 

There are several steps that you can take to protect yourself if you believe that your SSN has been compromised. If you suspect that someone else is using your SSN for work, or you have received notice from the IRS of unreported taxable income that is not yours, you should report the problem to SSA by calling 1-800-772-1213.

Our representatives will take the appropriate action to ensure that your Social Security records are correct. If your SSN has been used to run up bills or to obtain credit, Social Security cannot straighten out your credit record. However, we suggest you take the following steps.

  ● Notify the Federal Trade Commission (FTC) at 1-877-ID-THEFT (438-4338).
  ● File an online complaint with the Internet Crime Complaint Center at www.ic3.gov.  
  ● File a report with the local police or the police department where the identity theft took place, and keep a copy of the police report as proof of the crime.
  ● Contact the fraud units of the three major credit-reporting bureaus.
  ● Call each creditor to report fraud for any account that has been tampered with or opened fraudulently.
  ● Close the credit accounts that you know or believe have been tampered with or opened fraudulently.

Always keep your card in a safe place. Do not carry it with you unless you need it for a specific purpose.  You can prevent the loss or misuse of your card by keeping it with other valuable personal documents

May 26, 2009

Question:
I have followed your column. In the past you have provided references to certain areas on the Social Security website that can be used for financial planning. I’m doing some number crunching right now and need to use the benefit calculator from Social Security. Can you provide it again?

Answer:
Social Security offers several tools to help you plan now for a better future.

Every year workers 25 and older receive a Social Security Statement in the mail about two to three months before their birthday.  The Statement gives you an estimate, based on your current earnings, of what you might expect in Social Security retirement benefits. 

You can then visit our Retirement Planner — at www.socialsecurity.gov/retire2 — where you can personalize various financial scenarios to determine what your individual retirement plan should look like. 

You’ll also want to visit our popular Retirement Estimator.  There, you can key in some basic information and get a quick and accurate estimate of your benefit amount using different scenarios.  You can find the Retirement Estimator at www.socialsecurity.gov/estimator.

Once you know just what to expect from Social Security in retirement, you will know just how much you need to save for a secure retirement.

Money may be a bit tight right now, but just a little extra effort today in financial planning can yield big dividends later on no matter what your age.  Here’s why. A study on retirement satisfaction by researchers at Boston College asked retirees this question: 

“All in all, would you say that retirement has turned out to be: very satisfying, moderately satisfying, or not satisfying at all?” 

They found that among retired couples, those who answered “very satisfied” or “moderately satisfied” had income in retirement replacing 72 percent of their pre-retirement earnings, while those who said that their retirement was “not satisfying at all” had income replacing only about 60 percent of their pre-retirement earnings. 

If these numbers seem daunting to you, remember that Social Security provides about 40 percent of pre-retirement earnings replacement for the average wage earner, making Social Security the foundation upon which you can build your secure retirement. 

You also will need other savings, investments, pensions or retirement accounts to make sure you have enough money to live comfortably when you retire. 

May 15, 2009

Question:
I had a serious back injury four years ago and received disability benefits for about 18 months until I could return to work.  Unfortunately, my back problems have returned and I may not be able to continue working much longer. When I first applied for benefits, I waited several months before I received my first check.  If I reapply for benefits, will my wait be as long as it was the first time?

Answer:
If you become disabled a second time within five years after your previous disability benefits stopped, there is no waiting period before benefits start. 

If your claim is approved, you can receive benefits for the first full month of disability. It can take from three to five months to get a decision on a disability claim, depending on how long it takes to obtain your medical records and any other information we need to decide whether you are disabled.  You can help shorten this time by providing as much information as possible when you apply for benefits. 

For more information about applying for benefits, we suggest that you review our booklet, “Disability”, which is available at www.socialsecurity.gov under the link “Forms and Publications”.

Question:
I have received too much in benefits. How will SSA recover this overpayment?

Answer:
Recovery of an overpayment is made by withholding the monthly Social Security check until the overpayment is paid in full.  There are also other methods of recovery.

For example, a payment arrangement can be initiated. This involves agreeing upon a monthly amount that will be deducted from future monthly benefits until the balance is paid in full. 

Also, If the overpaid individual no longer receives Social Security payments, we can recover the overpayment from the individual's federal tax refund. This method of recovery is referred to as the Tax Refund Offset. Overpayments can also be withheld from family benefits paid on the number holder's record.

The most important thing to remember is for an individual to notify Social Security timely of any events that might affect the amount of their benefit.

May 8, 2009

Question:
I'm about to retire and I get rental income from a property I own.  Does investment income count as earnings and affect my ability to collect Social Security benefits?

Answer:
No.  We count only the wages you earn from a job or your net profit if you're self-employed.  Non-work income such as annuities, investment income, interest, capital gains and other government benefits are not counted and will not affect your Social Security benefits. 

Most pensions will not affect your benefits.  However, your benefit may be affected by government pensions earned through work on which you did not pay Social Security tax.  You can apply for retirement benefits online at www.socialsecurity.gov.    

Question:
What are the income and resource limits for the Extra Help with prescription drug costs?

Answer:
If your annual income is below $16,245 (or $21,855 if you are married and living with your spouse), you may qualify for the Extra Help. Even if your annual income is higher, you still may be able to get some help.

Some examples when your income may be higher include if you or your spouse support other family members who live with you; have earnings from work; or live in Alaska or Hawaii.

To get the Extra Help with Medicare prescription drug plan costs, your total resources generally must be limited to $12,510 (or $25,010 if you are married and living with your spouse). Resources include the value of the things you own. Some examples are real estate (other than your primary residence); bank accounts including checking, savings and certificates of deposit; stocks; bonds including U.S. Savings Bonds; mutual funds; Individual Retirement Accounts (IRAs); or cash at home or anywhere else.

Question:
If I don't receive my one-time economic recovery payment by the first week of June, what should I do?

Answer:
After June 4, 2009, you can call our toll-free number, 1-800-772-1213 (TTY 1-800-325-0778) or contact your local Social Security office to tell us your payment has not arrived. Please wait until then to ask about your payment because the Department of the Treasury will be sending payments until the end of May.

May 1, 2009

Question:
For years, I’ve enjoyed the convenience of having my Social Security benefit directly deposited into my bank account.  I’ve recently changed banks.  How do I change my direct deposit from one bank to another?

Answer:
You can sign up or change your direct deposit account a couple of ways. One, you can fill out a “Direct Deposit Sign Up Form” and taking it to your financial institution or Social Security office.  The form is available at www.socialsecurity.gov/deposit/1199a.pdf.

You can also call Social Security toll-free at 1-800-772-1213 (TTY 1-800-325-0778) to handle this over the telephone. The third method is online. You can obtain a password at https://secure.ssa.gov/acu/IPS_INTR/main.jsp.  Then you can start or change direct deposit online by going to www.socialsecurity.gov (for Social Security benefits only).

When you contact us, be sure to have your Social Security number and a personal check or statement from your new account.  We will need information from these documents to start your new direct deposit. 

Question:
My mom has Medicare prescription drug coverage.  Can she get extra help with the associated costs?

Answer:
She may be able to, depending on her income and resources.  In 2009, she must have an annual income below $16,245 (or $21,855 if she is married and living with her husband).  If her annual income is higher, she still may be able to get some help if she supports other family members who live with her, has earnings from work, or lives in Alaska or Hawaii.  

To get the extra help with Medicare prescription drug plan costs, her total resources also need to be limited to $12,510 (or $25,010 if she is married and living with her husband).  To learn more, visit www.socialsecurity.gov/prescriptionhelp.

Question:
What’s this I hear about a one-time recovery payment for Social Security beneficiaries?  Will I get a payment?

Answer:
If you get Social Security or Supplemental Security Income (SSI), then you should receive a one-time recovery payment of $250.  On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009.  Among its provisions are one-time payments to Social Security and Supplemental Security Income (SSI) beneficiaries.  

You should receive your payment by the end of May.  To learn more, visit www.socialsecurity.gov/payment.

April 28, 2009

Question:
My wife doesn't have enough work to qualify for Social Security or Medicare. Can she qualify on my record?

Answer
The question you've raised applies to husbands as well as wives. Even if he or she has never worked under Social Security, your spouse at full retirement age can receive a benefit equal to one-half of your full retirement amount.

If your spouse will receive a pension for work not covered by Social Security such as government foreign employment, the amount of his or her Social Security benefits on your record may be reduced.

Your spouse can begin collecting the benefits as early as age 62, but the amount will be permanently reduced by a percentage based on the number of months up to his or her full retirement age.

Your spouse who is caring for your child who is also receiving benefits can receive the full one-half benefit amount no matter what his or her age is.

Your spouse would receive these benefits until the child reaches age 16. At that time, the child's benefits continue, but your spouse's benefits stop unless he or she is old enough to receive retirement benefits (age 62 or older) or survivor benefits as a widow or widower (age 60).

If your spouse is eligible for retirement benefits on his or her own record, we will always pay that amount first. However, if the spouse benefit on your record is a higher amount, he or she will get a combination of benefits that equals that higher amount. It doesn't matter if your spouse starts getting benefits before, after, or at the same time you do--we will check both records to make sure that your spouse gets the higher amount whenever he or she becomes entitled to it.

Question:
I have many sources of income. What should I report in the earnings questions on the Social Security Statement request form?

Answer
You are credited only with earnings for which you pay Social Security (also known as FICA) taxes. If you are an employee, you can find this information on your W-2.

If you are self-employed, the amount is taken from the Schedule SE you file as part of your 1040 personal income tax return. Earnings from interest, dividends, and other sources (generally referred to as unearned income) are not included.

Regardless of your total earnings for a year, Social Security counts only earnings that are subject to FICA tax.

The contribution and benefit base is $106,800 for wages paid and self-employment income earned beginning in 2009. In other words, regardless of your wages or self-employment earnings for 2009, only the first $106,800 is taxed and only that amount is used in computing a benefit. However, there is no limit on the amount of income that is taxed for Medicare.

April 21, 2009

Question:
Is there an increase in premiums if I enroll in Medicare after age 65 and what is a special enrollment period (SEP)?

Answer
Your premium will be increased if you do not apply at age 65. Enrollment rules are very strict. Initially, you have seven months to sign up for Medicare. This seven-month period begins three months before your 65th birthday, includes the month you turn 65 and ends three months after that month.

If you enroll during the first three months of your enrollment period, your medical insurance protection will start with the month you are eligible.

If you enroll during the last four months, your protection will start one to three months after you enroll. If you do not enroll during this initial enrollment period, each year you are given another chance to sign up during a general enrollment period from January 1 through March 31. Your coverage begins the following July.

Your monthly Part B premium increases 10 percent for each 12-month period you were eligible but didn't enroll. There is an exception. If you are covered by an employer or union group health plan through your or your spouse's current or active employment, you may qualify for a special enrollment period (SEP).

The special enrollment period is a period of time, during which you may enroll.  If you did not enroll during your initial enrollment period because you are covered under a group health plan based on your own current employment or the current employment of any family member.

The special enrollment period may occur during any month you are covered under a group health plan based on current employment, or during the 8-month period that begins the first full month after employment or group health plan coverage ends, whichever comes first. For more information on how to qualify for a special enrollment period (SEP), see our publication Medicare – Click here.

Question:
My mother died February 25. Is her estate entitled to the check which arrived March 3, which is for the month of February? If not, why not?

Answer
No. Social Security benefits are not payable for the month in which a beneficiary dies.

This applies whether the person dies on the first or the last day of the month. This provision has been in the law since 1939 and can be changed only by an amendment to the Social Security Act. The legislative history of this provision does not show why benefits are not payable for the month of death. However, the provision complements the provision of the law that allows us to pay survivors benefits for the entire month of death.

April 15, 2009

Question:
Do I automatically get Medicare benefits if I'm eligible for disability benefits?

Answer:
We will automatically enroll you in Medicare after you get disability benefits for two years. We start counting the 24 months from the month you were entitled to receive Disability, not the month when you received your first check.

People with amyotrophic lateral sclerosis (Lou Gehrig's disease) get Medicare beginning with the month they become entitled to disability benefits.

Medicare has two parts - hospital insurance and medical insurance. Hospital insurance helps pay hospital bills and some follow-up care. The taxes you paid while you were working financed this coverage, so it is premium free.

The other part of Medicare, medical insurance, helps pay doctors' bills and other services. You will pay a monthly premium for this coverage if you want it.

Question:
I am divorced, but I think I am eligible for benefits on my ex-husband's record. Can I get one of these Social Security Statements on his record?

Answer:
For information about potential benefits on someone else's record, you should visit your local office. Privacy rules prohibit us from giving you his or her record, so we can't give you his Statement. However, we can tell you what benefits you may be entitled to, after we have established your relationship to him.

As a divorced spouse, you would need to establish that the two of you were married for at least 10 years. That means you will need to furnish your marriage and divorce records.

Friday is the best day to visit the local SSA office. The hours are 9 a.m. to 4 p.m.  In the meantime you may want to read the booklet, “What Every Woman Should Know.” Here is the link: http://www.socialsecurity.gov/pubs/10127.html.

April 3, 2009

Question:
I just got turned down for disability benefits.  Can I appeal the decision, or should I file a new application?

Answer:
You can appeal the decision, and the most convenient way to go about it is to appeal online.  An Internet appeal is a starting point to request a review of our decision about your eligibility for disability benefits. 

If your application is denied for medical reasons, you can complete and submit the required appeal request online.  The disability appeal report asks you for updated information about your medical condition and any treatment, tests or doctor visits since we made our decision.  

You will find it at http://www.socialsecurity.gov/applyfordisability. 

If you were denied for non-medical reasons, you should contact your local Social Security office to request the review. 

You can find your local office by visiting www.socialsecurity.gov and selecting “Find a Social Security Office.”  You also may call our toll-free number, 1-800-772-1213 (TTY 1-800-325-0778), to request an appeal.   

Question:
Is there a time limit for correcting my earnings record?

Answer:
The Social Security Act defines the basic statute of limitations beyond which earnings ordinarily may not be corrected: 3 years, 3 months, and 15 days after the close of the taxable year in which wages are paid or SEI is derived.

However, the Act also defines exceptions to protect Social Security contributors from unfair treatment because of any delay on the part of the Social Security Administration in processing earnings.

The exceptions permit us to correct errors after the statute has expired and include authority for us to confirm records with tax returns filed with the Internal Revenue Service. These exceptions also allow us to correct errors due to employee omissions from processed employer reports or missing reports.

We are also able to correct errors "on the face of the record," that is, errors we can find by examining our records of processed reports; and include wages reported by an employer as paid to an individual but not shown in our records.  

March 24, 2009

Question:
I paid the maximum amount of Social Security taxes for many years and retired early. Then I took part-time employment and I am now earning much less. How will this affect my benefit at age 62 and at full retirement age?

Answer:
First, if you begin receiving Social Security benefits at age 62, the earliest possible age for receiving retirement benefits, your benefit amount will be lower than if you had waited until full retirement age. 

Second, because of the years when you worked part-time and had low earnings, your benefit amount may be lower than if you had continued in your previous job paying the maximum. Your benefit payment is based on how much you earned during your working career. Higher lifetime earnings result in higher benefits. 

To test different retirement scenarios, we suggest you use our new Retirement Estimator. The Retirement Estimator produces estimates based on your actual Social Security earnings record. So you will be able to see the impact of your present and projected future earnings on your estimated benefit.

This is particularly helpful for people who are near retirement and need to get more precise estimates.

Question:
I'm receiving Social Security benefits. Do I still have to pay Social Security and Medicare tax on my earnings if I continue to work?

Answer:
Yes, you do. Whenever you work in a job that is covered by Social Security, your employer must deduct your Social Security and Medicare taxes from your salary and must pay the equal employer's share of the taxes. 

This is true, regardless of your age. Your earnings will be reported to SSA every year just like any other worker's earnings.

If you are self-employed while getting benefits and your net profit from your business is more than $400, that, too, is covered by Social Security and Medicare. You must report those earnings and pay the Social Security and Medicare taxes when you file your personal income tax return for the year.

Earnings after retirement may help increase the amount of your benefits. Each year we review the records for all Social Security recipients who work. If your latest year of earnings turns out to be one of your highest years, we refigure your benefit and pay you any increase due.

The Internal Revenue Service (IRS) is the authority on all tax matters including the collection of Social Security taxes. You can direct your questions to the IRS by calling their toll-free telephone number, 1-800-829-1040 or going to www.irs.gov.

March 17, 2009

Question:
Are Social Security benefits taxable?

Answer:
Sometimes.  About one third of beneficiaries pay taxes on their Social Security. 

If your total income, including Social Security and all of your other taxable income, is $25,000 or more, you’ll need to pay federal taxes on your benefits.  That amount is $32,000 for married couples filing a joint return.

You might also be asking, “Will I get a tax form for my Social Security benefits?”  Yes, and you should have already received it.  Social Security Benefit Statements (Form SSA-1099) for tax year 2008 were mailed to beneficiaries and should have been received by January 31, 2009.  

If you receive Social Security and haven’t received your 1099, you can request one online at www.socialsecurity.gov.

Here is something else to consider. If you had a child in 2008, make sure they have a Social Security number. Most parents apply for their baby’s Social Security number while still in the hospital at the same time they apply for the birth certificate.  If you didn’t, you will need to apply for your child’s Social Security number in order to claim the child as a dependent on your tax return.

There is one last thing.  If you’ve legally changed your name due to marriage, divorce, court order or for any other reason, make sure you change your name with Social Security.  Make sure you change your name with your employer as well.  If you change with one source but not the other, it could cause your earnings to be improperly recorded. 

Question:
Does Social Security have any advice to make tax filing and future benefit applications go smoothly?

Answer:
We strongly encourage you to carefully check your name, Social Security number and all of the data on your W-2s and on your Social Security Statement is correct.  A mismatch could delay your tax refund and might cause problems with your Social Security benefits in the future.  Such errors are easy to fix now.  If you do notice an error, you should contact Social Security at 1-800-772-1213 (TTY 1-800-325-0778), or if the incorrect information is on the W-2s, contact the personnel department of your employer.

March 10, 2009

Question:
Who will receive a one-time economic recovery payment from Social Security?

Answer:
Nearly 55 million Social Security and Supplemental Security Income (SSI) beneficiaries will receive a one-time payment of $250 each. We plan to pay all eligible Social Security and SSI beneficiaries by late May 2009, so you should expect to receive your payment no later than the first week of June 2009.

Only individuals eligible for Social Security, SSI, Veterans, or Railroad Retirement benefits at any time during the months of November 2008, December 2008, or January 2009 may be eligible for the one-time payment.

If you are married and both you and your spouse are receiving benefits from Social Security or SSI, you each will get the one-time payment.

Children under the age of 18 (19 if still in high school) who receive Social Security benefits are not eligible for the one-time payment. However, disabled adult children and children who receive SSI will receive a payment. 

The one-time payment will be a separate payment, which will not be included in your regular monthly benefit payment. We will deliver your payment in the same way we currently deliver your Social Security or SSI benefit. If we deliver your monthly benefit by check, we will deliver your one-time payment by check. If you receive a monthly direct deposit or Direct Express debit card payment, that is how you will receive your one-time payment.

At this time, no action is necessary. SSA has all the information we need to get your payment to you.

Question:
I have received misleading advertising concerning Social Security. How can I report this to Social Security?

Answer:
Our Office of the Inspector General investigates possible violations of section of the Social Security Act. That section of the law authorizes civil monetary penalties for misuse of certain Social Security words, symbols, or emblems. Please send the complete mailing (or a copy), including the envelope, along with a brief explanation, to: Office of Counsel to the Inspector General , Social Security Administration, Room 300, Altmeyer Building, 6401 Security Boulevard, Baltimore, Maryland 21235.

March 2, 2009

Question:
Why was my income tax refund withheld to offset my spouse's Social Security overpayment?

Answer:
The Omnibus Budget Reconciliation Act of 1990 permits the Social Security Administration to recover delinquent overpayments from former beneficiaries by offsetting their Federal income tax refunds.  

If you filed a joint tax return and your refund is withheld to pay your spouse’s overpayment and you wish to receive your portion of the refund, you must contact your local IRS office to file an “injured spouse claim”. IRS can be reached by calling 1-800-829-1040 or you can download the IRS Form 8379, Injured Spouse Allocation from the IRS website at http://www.irs.gov.  Refunds can only be made by IRS, not SSA.

Question:
Can I help a relative, neighbor, or friend apply for Social Security benefits online?

Answer:
Yes. Go to www.socialsecurity.gov/applyforbenefits to help your relative, neighbor, or friend apply for Social Security benefits online in one of the following ways.

If you are completing the application information with your relative, neighbor, or friend, just click on the button on the first page of the Internet application that reads, "I am helping someone who wants to apply for benefits and is with me." When the application is complete, your relative, neighbor or friend must sign the application electronically by clicking the “Sign Now” button at the end of the application.

You are not allowed to sign the Social Security application on your relative's, neighbor's, or friend's behalf. If you are completing an application for your relative, neighbor, or friend who is not with you, just click on the button that reads, "I am helping someone who is not with me, and therefore cannot sign the application at this time."

When the application is complete, click the “Finish” button at the end of the application. An application will be mailed to your relative, friend, or neighbor for him or her to review, sign, and return to the Social Security Administration.

Feb. 26, 2009

Question:
I paid the maximum amount of Social Security taxes for many years and retired early. Then I took part-time employment and I am now earning much less. How will this affect my benefit at age 62 and at full retirement age?

Answer:
First, if you begin receiving Social Security benefits at age 62, the earliest possible age for receiving retirement benefits, your benefit amount will be lower than if you had waited until full retirement age

Second, because of the years when you worked part-time and had low earnings, your benefit amount may be lower than if you had continued in your previous job paying the maximum. Your benefit payment is based on how much you earned during your working career. Higher lifetime earnings result in higher benefits. 

For more information, call Social Security at our toll-free number, 1-800-772-1213 from 7 a.m. to 7 p.m., Monday through Friday, to ask for the fact sheet “How Your Retirement Benefit is Figured.” You can also find it on the website, www.socialsecurity.gov under the Forms & Publications link.

Question:
Your column often refers people to the Social Security website. I would guess that a government website would not be very user friendly. Is it hard to navigate?

Answer:
Not at all, but do not take my word for it. The Social Security Administration’s online services have earned the highest overall score in the most recent e-Government Satisfaction Index. 

The Index, which is administered by ForeSee Results in conjunction with the University of Michigan's American Customer Satisfaction Index (ACSI), also gave three of SSA’s applications the highest scores in government. 

In a separate survey, Nextgov, a website devoted to technology and the federal government, listed www.socialsecurity.gov as one of the top five federal websites in its review of best online practices.

“We are committed to providing the best online services in government, and these accolades are proof that the public appreciates our efforts,” said Michael J. Astrue, Commissioner of Social Security.  “Whether it’s our Retirement Estimator or our online benefit applications, Social Security is continuing to offer new and improved eServices.”

While the federal government’s overall average score is 74 out of 100, SSA’s overall score was 79, the highest in the federal government. 

SSA’s Retirement Estimator (www.socialsecurity.gov/estimator) scored an 89. 

In recognizing the SSA homepage, Nextgov consulted web experts in government and academia and also did its own research and web browsing.  Its report noted that Social Security “paid careful attention to what their users wanted to see and do online.  With its applications consistently besting the top performers in the ACSI quarterly surveys, it’s clear the Social Security Administration is doing something right with its Web site.”

Feb. 16, 2009

Question:
I thought a wife could receive 50 percent of her husband’s benefit whenever she applied at age 62. Is this right?

Answer:
She would only be eligible for 50 percent if she waited until her full retirement age to apply on his record.

A spouse can choose to retire as early as age 62, but doing so may result in a benefit as little as 32.5 percent of the worker's primary insurance amount.

A spousal benefit is reduced 25/36 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month.

This reduction factor is applied to the base spousal benefit, which is 50 percent of the worker's primary insurance amount.

For example, if the worker's primary insurance amount is $1,600 and the worker's spouse chooses to begin receiving benefits 36 months before his or her normal retirement age, we first take 50 percent of $1,600 to get an $800 base spousal benefit. Then we compute the reduction factor, which is 36 times 25/36 of one percent, or 25 percent. Applying a 25 percent reduction to the $800 amount gives a spousal benefit of $600.

Thus, in this case, the final spousal benefit is 37.5 percent of the primary insurance amount.

Question:
I plan to start receiving a widow’s benefit at the earliest age possible, 60. When I turn  62, can I switch to my own retirement benefit if it is more?

Answer:
Yes, you can. If you are receiving widows, widowers, or divorced widows or widowers benefits, you can switch to your own retirement benefit as early as age 62.

This assumes you are eligible for retirement benefits and your retirement rate is higher than your rate as a widow or widower. In many cases, a widow or widower can begin receiving one benefit at a reduced rate and then, at full retirement age, switch to the other benefit at an unreduced rate.

Since the rules are complicated and vary depending on your situation, you may want to call 1-800-772-1213 (TTY 1-800-325-0778) to make an appointment to talk with a Social Security representative about the options available to you.

Feb. 5, 2009

Question:
I am self-employed. How do I pay Social Security tax?

Answer:
Self-employed people must report their earnings and pay the taxes directly to the IRS. You are self-employed if you operate a trade, business or profession, either by yourself or as a partner.

You report your earnings for Social Security when you file your federal income tax return. If your net earnings are $400 or more in a taxable year, you must report your earnings on Schedule SE for Social Security coverage purposes, in addition to the other tax forms you must file.

The Social Security tax rate for 2009 is 15.3 percent (the same as 2008) on self-employment income up to $106,800 (it was $102,000 in 2008). If your net earnings exceed $106,800, you continue to pay only the Medicare portion of the Social Security tax, which is 2.9 percent, on the rest of your earnings.

There are two income tax deductions that reduce your tax liability. The deductions are intended to make sure self-employed people are treated in much the same way as employers and employees for Social Security and income tax purposes.

First, your net earnings from self-employment are reduced by an amount equal to half of your total Social Security tax. This is similar to the way employees are treated under the tax laws in that the employer's share of the Social Security tax is not considered income to the employee.

Second, you can deduct half of your Social Security tax on the IRS Form 1040 (line 29). This means the deduction is taken from your gross income in determining adjusted gross income.

It cannot be an itemized deduction and must not be listed on your Schedule C. The IRS is the authority on tax matters. For more detailed information on how the self-employed report their earnings please contact the IRS.

Question:
When did SSA mail form SSA-1099, Social Security Benefit Statements for tax year 2008?

Answer:
Mailings of the Social Security Benefit Statements (SSA-1099) for Tax Year 2008 were completed by January 31, 2009.  

You can request a replacement SSA-1099 for 2008 by visiting www.socialsecurity.gov and clicking on the link “What You Can Do Online.” You may also call us toll-free at 1-800-772-1213, or our toll-free TTY number, 1-800-325-0778. Representatives are available between 7 a.m. and 7 p.m. CST, Monday through Friday. It is best to call during the first or last hour that lines are open.

Jan. 21, 2009

Question:
This is my first year that I will complete a tax return showing that I also receive Social Security benefits. What should I do to make sure I am prepared for this?

Answer:
The earlier you prepare for the April 15 tax deadline, the easier it will be to file your taxes.  Here are two helpful hints as you begin getting ready for tax season.

First of all, make sure your information matches ours.  Soon you will be receiving your W-2s from your employer(s) and tax information from the IRS.  Carefully check your name, Social Security number, all of the data on your W-2s, and on your Social Security Statement or card to make sure they match up. 

Make sure the number and information is correct on your W-2s.  A mismatch could delay your tax refund and cause problems with your Social Security benefits in the future.  Such errors are easy to fix now.

Secondly, go online if you cannot find your 1099.  Social Security Benefit Statements (Form SSA-1099) for tax year 2008 are automatically mailed to beneficiaries and should be received by January 31, 2009.  If you receive Social Security and have not received your 1099 in the mail by the end of January, but need it to file a tax return, just go online. 

Beginning in February, you can request a replacement 1099 online at https://secure.ssa.gov/apps6z/i1099/main.html.

Question:
How do I notify Social Security that I changed my address?

Answer:
If you get Social Security benefits you can change your address online by answering a series of questions that have to match our records.

You can also change your address on the Internet if you have established a permanent password. In either case, just go to www.socialsecurity.gov and click on the tab “What You Can Do Online.”

If you do not want to answer the questions that are asked online or you do not have a permanent password, you cannot submit a change of address online. Instead, you can either speak to a Social Security representative by calling our toll-free number at 1-800-772-1213.

If you are not receiving benefits or Medicare, and do not have an overpayment or claim pending with us, we do not keep a record of your address. If you received a Social Security Statement with an incorrect address, those addresses came from the Internal Revenue Service and you must make the correction with them, not Social Security.

Jan 15, 2009

Question:
How can I have federal income taxes withheld from my Social Security check?

Answer:
Although you are not required to have Federal taxes withheld from your Social Security benefit, you may find that easier than paying quarterly estimated tax payments.

To have Federal taxes withheld, or to change your original withholding request, you will need to complete IRS Form W-4V.  You will have to select the percentage of the monthly benefit amount you want withheld. You can choose between 7, 10, 15, or 25 percent.  Then, sign and return the form to your local Social Security office. You can also mail it.

To find the address of your nearest office just go to www.socialsecurity.gov. The office locator is on the left hand side of the homepage.  You can obtain IRS Form W-4V from the IRS website at http://www.irs.gov/pub/irs-pdf/fw4v.pdf or by calling the IRS toll-free number, 1-800-829-3676.

You will need the Adobe Reader software to view this file. You may also obtain the form by calling Social Security at 1-800-772-1213.  You can call between 7 a.m. and 7 p.m. on Monday through Friday to speak to a representative. It is best to call during the first or last hour.

Question:
How can I check my Social Security earnings for accuracy?

Answer:
It is important that you review page 3 of the Social Security Statement you receive each year to make sure the earnings record is correct and that we have recorded each year that you worked.

You are the only person who can look at the earnings chart and know whether it is complete and correct. If our records are wrong, you may not receive all the benefits to which you are entitled. If some, or all, of your earnings from the last year are not shown on your Statement, it could be that we were processing last year's earnings reports when your Statement was prepared.

Your complete earnings for the last year will be shown on the next Statement you receive. Call us right away at 1-800-772-1213 if any earnings for years before last year are shown incorrectly. If possible, have your W-2 or tax return for those years available. If you do not have a current Statement, you can request one at our website, www.socialsecurity.gov.

Jan. 8, 2009

Question:
How do I apply for Medicare?

Answer:
Most people qualify for Medicare when they turn 65. You qualify for it if you're eligible for Social Security or Railroad Retirement benefits. Or you may qualify on a spouse's (including divorced spouse's) record.  Others qualify because they are government employees not covered by Social Security who paid the Medicare part of the Social Security tax.

In addition, if you've been getting Social Security disability benefits for 24 months or get Social Security disability benefits and have amyotrophic lateral sclerosis (Lou Gehrig's disease), you'll qualify for Medicare.

You may also qualify if you have permanent kidney failure and you receive maintenance dialysis or a kidney transplant.

If you are already getting Social Security benefits, you'll automatically be enrolled in Medicare Parts A and B. However, because you must pay a premium for Part B coverage, you have the option of turning it down. 

You will be contacted by mail a few months before you become eligible and given all the information you need. If you are not already getting benefits when you turn 65, you should call 1-800-772-1213 three months prior to your birthday so we can help you decide if you should sign up for Medicare. You should do this even if you plan to continue working or do not think you have enough work credit under Social Security, because Medicare enrollment period rules are very strict. 

If you would like to file for Medicare only, you can apply by calling 1-800-772-1213.

Question:
In a few years I will turn 62 and would like to retire.  I know that Social Security’s full retirement age is gradually rising from 65 to 67.  But does this mean the “early” retirement age will also be going up by two years, from age 62 to 64?

Answer:
No.  While it is true that the full retirement age is gradually rising from 65 to 67, the “early” retirement age will remain at 62.  So you can go ahead with your plans to retire early.  Keep in mind, however, that by taking early retirement, your benefits will be reduced.  For more information on the factors to consider, read the fact sheet “When to Start Receiving Retirement Benefits” at www.socialsecurity.gov/pubs/10147.html.