Key Takeaway: Social Security benefits may be taxable: Depending on your income level and filing status, up to 85% of your Social Security benefits may be subject to federal income tax. Calculation of taxable benefits: To calculate the taxable portion of your Social Security benefits, you’ll need to determine your provisional income by adding up…
Key Takeaway: The Social Security Administration (SSA) determines your income by collecting information from your annual earnings report, W-2 form, estimated earnings, tax returns, and the National Data Exchange (NDE). All of this information is used to calculate your Average Indexed Monthly Earnings (AIME) which is used to determine your benefits. Factors that affect your…
Key Takeaway: Types of Social Security Benefits: Social Security benefits come in several forms, including retirement benefits, disability benefits, survivor benefits, and supplemental security income. Each type has different eligibility criteria and factors that can affect the amount of the benefit. Reasons for Reduction of Social Security Benefits: Social Security benefits can be reduced for…
Key Takeaways: Social security tax serves a crucial purpose of providing retirement, disability and survivor benefits to eligible individuals. The tax is calculated as a percentage of an individual’s income, and both employees and employers are responsible for contributing to it. While the tax has been criticized for being regressive and concerns about the long-term…
Key Takeaway: Social Security is a system that provides financial assistance to the elderly and disabled individuals in the United States. Retirement benefits, survivor benefits, and disability benefits are the main types of Social Security benefits available to the elderly. The income received from Social Security payments is taxable, and the amount received depends on…
Key Takeaway: Social Security funds were first used by Ida May Fuller, a legal secretary from Vermont, in 1940. She received the first Social Security check for $22.54. Social Security was created in the United States in 1935 as a safety net for retirees, disabled workers, and survivors of deceased workers. Since Ida May Fuller,…
Key Takeaway: International students in the US are eligible to obtain a Social Security Number (SSN) if they have a valid non-immigrant status, such as F-1 or J-1 visa, and have been authorized to work by the Department of Homeland Security. When applying for an SSN, international students must submit documents including passport, visa, I-94,…
Key Takeaway: Understanding the eligibility requirements and benefits calculation of social security benefits is crucial before deciding when to collect them. Eligibility is based on age and work credits, while the benefits calculation takes into account the highest earning years and the claiming age. Collecting benefits early (at age 62) will result in a reduced…
Key Takeaway: WEP or Windfall Elimination Provision is a Social Security rule that reduces the retirement benefits for people who worked in jobs where they did not pay Social Security taxes. It is important to understand WEP to properly calculate your Social Security benefits. The factors that determine WEP for Social Security include your work…
Key Takeaway: Individuals who receive social security benefits may continue to work and earn a certain amount of money before their benefits are affected. For individuals under full retirement age, the earnings limit is $18,960 in 2021. For individuals over full retirement age, there is no longer an earnings limit. If an individual earns more…
Key Takeaways: Mitch McConnell has a history of proposing changes to Social Security, including supporting privatization and increasing the retirement age. McConnell has opposed expanding Social Security benefits, citing concerns about the impact on the federal deficit. The future of Social Security under McConnell’s leadership remains uncertain, with potential changes and implications for current and…
Key Takeaways: W2 form from Social Security provides details of your annual earnings and taxes paid. It is important to obtain this form as it is required for filing taxes. You can obtain your W2 form from Social Security by requesting it online, by phone or by mail. Online requests are the quickest and simplest,…