Questions & Answers About Social Security

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 2007 increase for beneficiaries is 3.3 percent and the 2006 increase was 4.1 percent.

There is another way that your benefit might increase. When you work, you pay Social Security taxes. And because you pay these taxes, 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 (remember, employers do not report your income to us until February 28 of the year following the year of earnings). 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.

Question:

Can my spouse collect benefits at age 62 from her work and earnings and then receive a combined total up to 50 per cent from my account when I start receiving benefits at age 65?

Answer:

Your wife can start receiving reduced retirement benefits on her own record at age 62. If the amount she receives on her own record is less than what she would be entitled to as a spouse, she would receive a higher spouse's benefit when you start receiving benefits. However, because she began receiving Social Security before reaching full retirement age, she will receive a reduced benefit rate that is less than the full 50 percent amount for as long as she remains entitled to spouse's benefits.

When your spouse applies for reduced retirement benefits, we will check to see if she is eligible for both her own retirement benefits and for benefits as a spouse. If she is eligible for both, we will pay her own benefits first. If she is due additional benefits, she will get a combination of benefits equaling the higher spouse's benefit. If she is not eligible for both because you are not yet entitled, but is due a higher amount when you start receiving Social Security benefits, then the higher spouse's benefit is payable to her when you apply for retirement benefits.

Remember, she cannot receive spouse's benefits until you file for retirement.

May 21, 2007

Question:

How do I report a stolen or lost Social Security card?

Answer:

Reporting a lost or stolen card to us will not prevent its misuse. If you have lost your card, you may apply for a replacement but Social Security takes no action just because it has been lost or stolen. However, a person using your card or number can get other personal information about you and apply for credit in your name. So if you suspect someone is using your number, you should take these steps to protect yourself and your financial health.

Educate yourself about identity theft. File a complaint with the Federal Trade Commission. Check your Social Security records (call toll-free 1-800-772-1213; TTY 1-800-325-0778) to ensure your income is calculated correctly, and monitor your credit reports.

For more information, visit the Federal Trade Commission’s website at http://www.ftc.gov/bcp/edu/microsites/idtheft/ In most cases, the only time you will need to produce your card is when you apply for employment. Therefore, if you anticipate starting new employment, you should request a replacement card in advance.

You can replace your card for free if it is lost or stolen. However, you are limited to three replacement cards in a year and 10 during your lifetime. Legal name changes and other exceptions do not count toward these limits. For example, changes in noncitizen status that require card updates may not count toward these limits. Also, you may not be affected by these limits if you can prove you need the card to prevent a significant hardship. Keep your Social Security card in a safe place with your other important papers. Do not carry it with you.

Question:

What are the differences between Medicare Parts A, B, C and D?

Answer:

There are four parts to Medicare: Medicare Part A, Hospital Insurance; Medicare Part B, Medical Insurance; Medicare Part C (Medicare Advantage), which was formerly known as "Medicare + Choice" and the new Medicare Part D, prescription drug coverage.

Generally, people who are over age 65 and getting Social Security automatically qualify for Medicare Parts A and B. So do people who have been getting disability benefits for two years, people who have amyotrophic lateral sclerosis (Lou Gehrig's disease) and receive disability benefits, and people who have permanent kidney failure and receive maintenance dialysis or a kidney transplant.

Part A is paid for by a portion of Social Security tax. It helps pay for inpatient hospital care, skilled nursing care, hospice care and other services.

Part B is paid for by the monthly premiums of people enrolled and by general funds from the U.S. Treasury. It helps pay for doctors' fees, outpatient hospital visits, and other medical services and supplies that are not covered by Part A.

Part C (Medicare Advantage) plans allow you to choose to receive all of your health care services through a provider organization. These plans may help lower your costs of receiving medical services, or you may get extra benefits for an additional monthly fee. You must have both Parts A and B to enroll in Part C.

Part D (prescription drug coverage) is voluntary and the costs are paid for by the monthly premiums of enrollees and Medicare. Unlike Part B in which you are automatically enrolled and must opt out if you do not want it, with Part D you have to opt in by filling out a form and enrolling in an approved plan.

More information about all four parts of Medicare can be found at www.medicare.gov

May 17, 2007

Question:

I am a 45 year old, middle income wage earner. I have decided to get more proactive in planning for my retirement. I received my annual Social Security Statement and was wondering how my benefit compares to other workers. What is the average monthly Social Security retirement benefit?

Answer:

The average monthly Social Security retirement benefit payment is just over $1,000 today. Clearly there is a need for other retirement income if a retiree is to enjoy financial independence and have choices about his or her lifestyle. Today more than nine of 10 retirees receive a dependable monthly payment from Social Security.

The importance of planning and saving for retirement cannot be overemphasized. Just last month the 2006 Employee Benefit Research Institute’s conducted a “Retirement Confidence Survey.” It found that “more than half of workers saving for retirement report total savings and investments (not including the value of their primary residence or any defined benefit plans) of less than $50,000.”

The survey also indicated that “… the large majority of workers who have not put money aside for retirement have little in savings at all: three-quarters of these workers say their assets total less than $10,000.”

While these numbers are not encouraging, they are a sure sign that more of us need to begin working harder at giving ourselves “choices for independence” in retirement. A great place to start is with a visit to Social Security’s retirement planners at www.socialsecurity.gov. The planners provide detailed information about your Social Security retirement benefits under current law and point out things you may want to consider as you prepare for the future.

Question:

I visited the Social Security web site to find out how to get a Social Security card for my baby. In doing so I learned that I could have saved myself a lot of time if I had just asked the hospital to do this for me at the time my baby was born. I also learned that my daughter has one of the top ten girl’s names—Abigail. Please let your readers know about applying for their baby’s Social Security card right after they are born.

Answer:

That is an excellent suggestion. When you have a baby, one of the things that should be on your “to do” list is getting a Social Security number for your baby. The easiest time to do this is when you give information for your child’s birth certificate. If you wait to apply for a number at a Social Security office, there may be delays while we verify your child’s birth certificate.

If you or someone you know needs help in selecting a name for their baby, Social Security can help, too. Based on all Social Security card applications for children born last year, Emily and Jacob are the most popular baby names for the seventh year in a row.

The top ten girls names for 2005 are Emily, Emma, Madison, Abigail, Olivia, Isabella, Hannah, Samantha, Ava, and Ashley. The top ten boys names are Jacob, Michael, Joshua, Matthew, Ethan, Andrew, Daniel, Anthony, Christopher, and Joseph.

Emily has been the most popular female name each year since 1996. Jacob has been the top male name since 1999.

New to the top ten this year are Ava and Anthony. In addition to a list of the 1,000 most popular baby names for 2005, there is a list of the most popular baby names for each state.

Also, there is a list of the top 100 names for twins born in 2005. Jacob and Joshua are the most popular twin’s names. It is now easier to find information for babies, children and parents on the Social Security website.

There are links to other government websites that offer valuable information about pregnancy, caring for newborns and programs and services for families. Social Security started compiling baby name lists in 1997. Social Security’s website-- www.socialsecurity.gov --has a variety of online services that allow people to access information and conduct business with Social Security from the convenience of their computers at any time.

May 8, 2007

Question:

I would like to change my direct deposit information. Do I have to do this in person or can I take care of it on the Internet?

Answer:

Here is some useful advice for any Social Security beneficiary who is thinking about opening a new bank account or changing banks and who may need to change the direct deposit of his or her benefit payments. Just go online to make the process quicker and easier.

First, you will need to get a password from Social Security. You can get a password by applying online at www.socialsecurity.gov or by calling us at 1-800-772-1213 (TTY 1-800-325-0778). Once you have your password, you can do business with Social Security with total confidence in the security of your transactions.

Of course, you can also change direct deposit services by using our automated phone service at 1-800-772-1213. You can also fill out a direct deposit sign-up form that is available from the Social Security website and take it to your financial institution or Social Security office.

Your bank or credit union can also help you complete the change. You can use any of these methods to set up direct deposit for the first time. Also, we recommend that you wait until deposits are actually going to your new bank, savings and loan or credit union before you close your old account.

One of the most common reasons for changing banking accounts is because a person has moved to a new address and wants to bank at a nearby institution. It is important for Social Security to have your correct home address, even if you are having your Social Security benefits deposited directly into a banking account, so that we can contact you about other Social Security matters, such as when we mail you your Form 1099 each year. You also can change your home address and/or telephone number over the Internet at www.socialsecurity.gov.

Again, you can use your password to change your address online. Or you can change your address online by answering a series of specific questions whose answers have to match the information in our records.

Question:

Why do some people get both Social Security disability and Supplemental Security Income (SSI)? I’m severely disabled and only get SSI.

Answer:

Since Social Security is considered income, many people who get Social Security make too much to get SSI. But for some, when the Social Security payment is a small amount, both Social Security and SSI can be paid. For more information, visit our website at www.socialsecurity.com or call us at 1-800-772-1213.

May 6, 2007

Question:

With Mother’s Day coming up, I will be visiting my parents. While I am there, I thought I would try to help them apply for the extra help with prescription drugs through Medicare and Social Security. How can I tell if they qualify?

Answer:

If their annual income is below $20,535 as a married couple that is living together (or $15,315 for an individual), then they might qualify for the extra help. Even if their annual income is higher, your parents still may be able to get some help.

Some examples of when income may be higher are if they support other family members who live with them, have earnings from work, or live in Alaska or Hawaii. To get the extra help with Medicare prescription drug plan costs, their total resources generally must be limited to $11,710 for an individual (or $23,410 for a couple living together).

Question:

I’m about to turn 65 and do not plan to apply for retirement yet, but I want Medicare. When should I apply?

Answer:

Generally, we advise people to apply for Medicare benefits three months before reaching age 65. If you want your Medicare to begin the month you reach age 65, you have to apply at least a month before. Remember that Medicare benefits can begin no earlier than the beginning of the month in which you reach age 65. For people already receiving Social Security when you reach age 65, you will automatically be enrolled in Medicare Parts A and B without an additional application. However, because you must pay a premium for Part B coverage, you have the option of turning it down. To learn more, read our online publication on “Medicare” at www.socialsecurity.gov/pubs/10043.html or call 1-800-772-1213 (TTY 1-800-325-0778) to ask for a copy to be mailed to you. Even if you plan to delay the start of your monthly Social Security benefits, you still need to inquire about your Medicare enrollment when you are turning 65.

April 24, 2007

Question:

What is the financial status of the Social Security system?

Answer:

The Social Security Board of Trustees released its annual report on the financial health of the Social Security Trust Funds. The 2007 Trustees Report shows slight improvement in the projected financial status of the Social Security program from last year. In the 2007 Annual Report to Congress, the Trustees announced the following forecast.

The projected point at which tax revenues will fall below program costs comes in 2017 -- the same as the estimate in last year’s report. The projected point at which the Trust Funds will be exhausted comes in 2041 -- one year later than the projection in last year’s report. During 2006, an estimated 162 million people had earnings covered by Social Security and paid payroll taxes. Social Security paid benefits of $546 billion in calendar year 2006. There were 49 million beneficiaries at the end of the calendar year.

“Social Security provides valuable economic protection to workers and their families. We owe it to the American public to continue to offer the best possible support for older Americans, people with disabilities and their families in the coming decades,” said Michael J. Astrue, Commissioner of Social Security. He added, “The Trustees Report is an important tool for those in the legislative and executive branches who will have to make the very difficult decisions about how best to ensure Social Security remains viable for the long term.”

Question:

I turn 62 this year and plan to retire at the end of July. But the way my company pays me may pose a problem. Even though I’ll stop working when I retire, I won’t get paid until several months later. Will my company’s payment policy affect my eligibility for Social Security?

Answer:

No, it won’t. We count earnings in the month they are earned, not the month they are paid. So even though you will get paid after you retire at the end of July, because you earned that money prior to August, you will be due your Social Security retirement benefit for August and the rest of the year. To learn more about retirement, visit our website at www.socialsecurity.gov or call us at 1-800-772-1213 (TTY 1-800-325-0778).

Question:

Why do some people get both Social Security disability and Supplemental Security Income (SSI)? I’m severely disabled and only get SSI.

Answer:

In order to get both you must qualify for both. To get Social Security, you need to have worked long enough and recently enough and you need to have paid enough Social Security taxes. If you’re receiving SSI only, that means you did not pay enough in Social Security tax to qualify. SSI, on the other hand, is a needs-based program for people who are disabled, blind or at least 65 years old and who have low income. Since Social Security is considered income, many people who get Social Security make too much to get SSI. For some, when the Social Security payment is a small amount, both Social Security and SSI can be paid.

April 6, 2007

Question:

I just went through a delay in getting my tax refund. It was all because the name on my Social Security record did not match my name with IRS. Are there other delays I might experience because of a mismatch of records due to my name?

Answer:

It is important to regularly check your records to make sure that the name and number on your Social Security card match up with the name and number you are using elsewhere. If you do not, it could cost you time, money and effort to resolve. Your Social Security number and the name on your Social Security card are often used by companies and government agencies as a way to check your identity. If anything is amiss, you could have a problem. That is why you should regularly check to make sure your records match.

This is especially true for people who have recently changed their names, such as new brides or adopted children. Here are a few examples of situations where mismatches can cause trouble. The Internal Revenue Service (IRS) checks your return against your Social Security records.

If your name and number do not match up, it could mean a delay in your tax refund or trouble with the IRS. It is also important for your voter registration records. Do not go to the polls only to discover that you do not have permission to vote because of a mismatch. You will also have problems if you cannot renew your driver’s license due to a name and Social Security number mismatch with your state’s Department or Bureau of Motor Vehicles.

In addition, make sure your employer and human resources department are using the correct name and Social Security number. Not only could it be a red flag to your employer when your identity does not match, it could affect your future Social Security benefits. If your earnings are not reported to Social Security under your correct name and number, you may not get the earnings credits you are due. That could translate to lower benefit payments in your future. Such earnings discrepancies can be corrected, but it can cause an inconvenient delay when you file for benefits.

There are many reasons why your identity records should match ours. So make sure that any time you deal with a company or government agency, they have your correct name and Social Security number as it appears on your Social Security card.

Question:

I look at my Social Security Statement each year to make sure my earnings are properly recorded. This year I became self-employed, but I didn’t get credit for my full earnings. Why not?

Answer:

The amount recorded is your net income. For people who are self employed, we count net income, not gross income, when figuring your credits of coverage. Net earnings for Social Security are your gross earnings from your trade or business, minus your allowable business deductions and depreciation. If, in fact, your net earnings are not correctly reflected, you should let us know. Visit our website to learn more about Social Security at www.socialsecurity.gov, or call us at 1-800-772-1213 (TTY 1-800-325-0778).

March 30, 2007

Question:

I am getting ready to prepare my federal income tax return. Do I need to have a Social Security number for my 7 month old daughter?

Answer:

Yes, you will need a Social Security number to claim your newest family member as a dependent on your federal tax return.

Approximately one in 10 parents last year did not apply for a Social Security number for their newborns before leaving the hospital. Do not wait until April 15 to apply for that number. You need to apply now.

Here is what you need to do to get a new Social Security number. Complete an Application for a Social Security Card (Form SS-5). This form is available online at www.socialsecurity.gov/online/ss-5.html. If you do not have online access, you can request a form by calling Social Security’s toll-free number, 1-800-772-1213, or visiting a local Social Security office.

You also will need to provide documents that prove both your and your child’s identity, and documents that show your child’s U.S. citizenship and age.

All of these documents must be either originals or copies of originals that are certified by the issuing agency. We do not accept copies or notarized copies of documents. Keep in mind there are strict requirements on what documents Social Security can accept to prove citizenship and identity. For example, only certain documents can be accepted as proof of U.S. citizenship. These include a U.S. birth certificate, a U.S. passport, a Certificate of Naturalization or a Certificate of Citizenship.

In addition, Social Security will need to verify your child’s birth record before you can be issued a card. You must take or mail the completed Form SS-5 to the nearest Social Security office, together with the originals or certified copies of your supporting documents. We will return your original documents right away, and we will then mail a Social Security card as soon as your documents are verified, which can take several weeks.

Once you have a Social Security number for your newborn, you should safeguard that number, as well as the numbers of other family members. Keep that card in a safe place with your other important papers. Do not carry your Social Security card in your wallet.

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 one 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 at http://www.socialsecurity.gov/pubs/10043.html.

March 25, 2007

Question:

I spoke to a friend of mine that lives in Houston. She indicated that she received a call from a company that is updating all Medicare cards. She was asked for her personal information in order to comply with being sent a new card. Is this a valid call or yet another scam?

Answer:

This has been confirmed as yet another scam. Reports out of the Houston-area indicate that there is yet another Medicare hoax circulating from telemarketers. The best advice is to hang up the telephone if you receive a call from someone saying the federal government is issuing you a new insurance card.

The callers claim that it is necessary to update your personal information.

One thing Medicare will never do is call to confirm a Medicare number or a Social Security number.

One Houston woman said she received a call from a man saying the federal government was spending $541 million to reissue Medicare cards nationwide and needed to verify her personal information. He identified himself as an employee with a firm called CACS. The woman suspected a scam and refused to cooperate with his request.

Barbara McGinity, program director for the Better Business Bureau Education Foundation, said this is not an isolated incident. Other seniors have reported similar phone calls from telemarketers saying they will lose their Medicare benefits if they do not provide personal information. McGinity said her office has been hearing about Medicare related scams, especially since the start of the prescription-drug program.

Question

What are the requirements for a survivor to receive Social Security benefits?

Answer:
In order to receive survivors benefits, the deceased worker must have earned the required number of Social Security credits and survivors must meet the following requirements.

A widow or widower may be able to receive full benefits at age 65 if born before 1940. The age to receive full benefits is gradually increasing to age 67 for widows and widowers born in 1940 or later.

Reduced widow or widower benefits can be received as early as age 60. If the surviving spouse is disabled, benefits can begin as early as age 50.

A widow or widower can receive benefits at any age if she or he takes care of the deceased worker's child who is entitled to a child's benefit and is younger than age 16 or disabled.

A deceased worker's unmarried children who are younger than age 18 (or up to age 19 if they are attending elementary or secondary school full time) also can receive benefits. Children can get benefits at any age if they were disabled before age 22 and remain disabled.

A deceased worker's former wife or husband who is age 60 or older (as early as age 50 if disabled) can get benefits if the marriage lasted at least 10 years. A former spouse, however, does not have to meet the age or length-of-marriage rule if he or she is caring for his/her child who is younger than age 16 or who is disabled and also entitled based on the deceased worker's work. The child must be the deceased worker's former spouse's natural or legally adopted child.

As you can see, there are many situations in which a person can receive survivor’s benefits. It is recommended that a person contact Social Security to determine if these benefits can be paid to surviving family members.

March 15, 2007

Question:

If my retirement or disability benefits are computed under the WEP, will the benefits of my dependents and survivors be affected?

Answer:

The Windfall Elimination Provision (WEP) affects the benefits of retired or disabled workers who are also receiving a pension based on work not covered by Social Security. Since dependents' benefits are derived from the worker's benefit, WEP affects dependents' benefits as well. WEP does not affect benefits paid to survivors of workers who received pensions based on non-covered employment.

Let’s look at the following example. A worker and spouse both claim their benefits at full retirement age. Since the worker receives a pension based on work not covered by Social Security, the benefit amount under the WEP benefit formula is $700. Based on the WEP benefit amount, the spouse's benefit is $350 (one-half of the worker's full benefit amount).

Realize that the spouse’s benefit is based on their age. If the spouse applies before full retirement age, the benefit will be adjusted downward from the 50% maximum that is payable. In the event of the worker’s death, the WEP reduction is removed. The surviving spouse's benefit is refigured using the regular benefit formula.

Question:

I am only in my twenties. Last month I was injured in an auto accident and unable to work. How old do you have to be to get Social Security disability benefits?

Answer:

There is no minimum age, but you must have worked long enough and recently enough under Social Security to earn the required number of work credits. You can earn up to four work credits each year. The amount of earnings required for a credit increases each year as general wage levels go up. The number of work credits you need for disability benefits depends on your age when you become disabled.

In some cases for a very young worker, you may only need six work credits — as little as 18 months of work. You can find out exactly how many credits you need to qualify for disability benefits on our website, at www.socialsecurity.gov/dibplan/dqualify3.htm. If you don’t have enough work credits, you may still qualify for Supplemental Security Income benefits if you are disabled and have limited income and resources. To learn more about benefits, visit www.socialsecurity.gov, or call us toll-free at 1-800-772-1213

March 10, 2007

Question:

How do I report a stolen or lost Social Security card?

Answer:

If your Social Security card has been stolen, you can apply for a replacement card. Usually, the only time you will need to produce your card is when you apply for employment. You can replace your card for free if it is lost or stolen.

However, you are limited to three replacement cards in a year and 10 during your lifetime. Legal name changes and other exceptions do not count toward these limits. For example, changes in noncitizen status that require card updates may not count toward these limits. Also, you may not be affected by these limits if you can prove you need the card to prevent a significant hardship.

To get a replacement card you must complete an “Application For A Social Security Card” (Form SS-5). Show us documents proving U.S. citizenship (or immigration status and work eligibility) and identity. Lastly, take or mail your completed application and documents to your local Social Security office. When you apply for a replacement card, also ask Social Security to review your earnings records to ensure they are correct and that no one else is using your number to work. Likewise, verify your earnings each time you get your annual Social Security Statement.

Keep your Social Security card in a safe place with your other important papers. Do not carry it with you.

Question:

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

Answer:

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 (remember, employers do not report your income to us until February 28 of the year following the year of earnings). 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.

3/05/07

Question:
Do I still have time to sign up for Part B of Medicare? I did not sign up when I was first eligible.

Answer:

Yes, there is time, but time is running out. If you did not sign up for Medicare Part B medical insurance when you first became eligible for Medicare, you now have an opportunity to apply. The deadline for applying is March 31, 2007.

If you miss the deadline, you will have to wait until 2008 to apply. Medicare Part B covers some medical expenses not covered by Medicare Part A (hospital insurance), such as doctors’ fees, outpatient hospital visits, and other medical supplies and services that are not covered by Medicare Part A. When you first become eligible for hospital insurance (Part A), you have a seven-month period (your initial enrollment period) in which to sign up for medical insurance (Part B).

After that, you have to pay a higher premium — unless you were covered through an employer's group health plan or a group health plan based on a spouse's employment. You are given another opportunity to enroll in Part B during the general enrollment period, from January 1 to March 31 of each year.

But each 12-month period that you are eligible for Medicare Part B and do not sign up, the amount of your monthly premium increases by 10 percent. If you sign up during the general enrollment period, your Part B coverage is not effective until July 1. You can learn more about Medicare by reading our electronic booklet, Medicare (SSA Publication No. 05-10043) at www.socialsecurity.gov/pubs/10043.html.

You may also call us toll-free at 1-800-772-1213 (TTY 1-800-325-0778) to ask for a copy. Or visit the Medicare website at www.medicare.gov. You may also call Medicare at 1-800-MEDICARE (1-800-633-4227; TTY 1-877-486-2048).

Question:
There’s a lot of talk about online services. But what about people like me who don’t have Internet access?

Answer:

We realize that not everyone has access to the Internet, which is why many of our automated services are available over the phone as well. There are a number of things you can do right from the convenience of your home at Social Security’s toll-free number, 1-800-772-1213.

Social Security’s automated telephone services allow you to take care of your Social Security business quickly, efficiently, easily and whenever it is convenient for you. The automated telephone services are available 24 hours a day, seven days a week. Using our automated system, you can request Social Security booklets, pamphlets, publications and informational material, ask for a Social Security card application (SS-5) to be mailed to you, request an Earnings and Benefit Estimate Statement (SSA-7004) or even have a replacement Medicare card mailed to your address on record.

If you are already receiving benefits, you also can change your personal information over the phone using our automated services, such as your mailing address or direct deposit information. And if you plan to visit Social Security, you can ask for the location of the closest office using our automated phone service.

Although these automated services are easy to use and can be accessed around the clock, you still have the option to ask for a customer service representative during our normal business hours of 7 a.m. to 7 p.m., Monday through Friday. Take advantage of Social Security’s automated services now by calling 1-800-772-1213. For more information about Social Security, you may call the number above, or visit our website at www.socialsecurity.gov.

2/27/07

Question:
I do not have enough credits to qualify for a social security check of my own. Will I be entitled to collect from my husband? Is there a percentage amount that is standard? At what age do I apply?

Answer:

You can apply on his record as early as age 62, provided he is also receiving his own benefit. Otherwise, you would have to wait until he starts his own benefit. At age 62 you are entitled to about 37% of his full benefit amount.

The most you can receive as his wife is 50% of his full benefit amount, if you wait until you reach full retirement age (age 66). You would also be eligible for widow's benefits as early as age 60 on his record.

At age 60 a widow qualifies for 71.5% of the deceased spouse's full benefit amount. The amount would be higher if you apply for widow's benefits after the age of 60, and it would depend on your age at the time you apply for the benefit.

If you worked for an employer that did not pay into Social Security, such as teacher retirement system or civil service, then that private pension would reduce, and perhaps eliminate, any benefits payable to you based on your husband's record.

Question:
I will be 65 this year on May 22. It is my understanding that I must sign up for Medicare 3 months prior to my 65th birthday. I am still working full time and have full medical coverage with Blue Cross. Will I be penalized in any way if I do not sign up before February 22, 2007, which is 3 months before my birthday? Can I be a few days late or does it have to be done before February 22? Is there any grace period?

Answer:

You can apply during the three calendar months prior to the month you turn 65. This would begin with February 1 even though your birthday is on May 22. So there would not be any problem if you apply in late February, March, or even in April. I suggest that you call 1-800-772-1213 for an appointment when you are ready.

You can call Monday through Friday between 7 a.m. and 7 p.m. CST. It is best to call early or late. When you make the appointment, you will have the option of having us call you at home, work, or you can come into the office that handles your zip code. This will be explained when you make the appointment.

You will need the original or certified copy of your birth certificate. Since you have group health insurance and you will still be working at age 65, you can inquire about delaying the start of your Part B of Medicare (doctors insurance) without penalty. This is called the Special Enrollment Period of Medicare.

If the SEP applies, you would be signing up for Part A (hospital insurance) when we speak with you on the date of your appointment. You would be able to delay the start of your Part B enrollment until you stop working for your present employer.

You can learn more about Medicare enrollment by visiting www.medicare.gov . Under the “Search Tools,” click on the link for “Find A Medicare Publication.” Then, type in “enrolling in Medicare.” This will provide you with the information you need to better understand the enrollment periods.

2/19/07

Question:
I am receiving disability benefits from Social Security, and I am interested in returning to work. I have heard about the “Ticket to Work” program, but would like to know more. What can you tell me about it?

Answer:

Five years ago the Ticket to Work program was launched to help people with disabilities go to work. Since then, more than 150,000 people who get Social Security and Supplemental Security Income (SSI) disability benefits have used their Tickets to obtain free vocational rehabilitation, job training and other support services.

The Ticket to Work program is voluntary. Social Security and SSI beneficiaries who receive a Ticket are not required to work, but may choose to use their Tickets to attempt to go to work.

The number of people using their Tickets is expected to continue to grow as more Americans with disabilities become familiar with the opportunities the program has to offer. A disability beneficiary can use the Ticket with either a private sector employment network or a State Vocational Rehabilitation Agency.

Together the beneficiary and service provider design an individual employment plan outlining the services to be provided that will help the beneficiary reach his or her job goals. The Ticket to Work program removes many barriers that had previously faced people with disabilities receiving benefits.

Social Security disability beneficiaries are eligible for Medicare, and most Social Security disability beneficiaries now are protected by Medicare for up to eight years and six months after they go to work. Medicare coverage continues even if an individual no longer receives a monetary benefit from Social Security.

If you or someone you know is a Social Security or SSI disability beneficiary who would like to learn more about how the Ticket to Work program can help, just visit Social Security’s website at www.socialsecurity.gov/work . Or you can call Social Security’s toll-free number, 1-800-772-1213 (TTY1-800-325-0778) and ask for the “Your Ticket to Work” leaflet (Publication No. 05-10061).

Question:
I retired early and my only income has been withdrawals from my Individual Retirement Account (IRA). I plan to apply for Social Security this year. Will my IRA income reduce my Social Security benefits?

Answer:

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

Question:
How much of my annual earnings are subject to the Social Security payroll tax?

Answer:

In 2007, the maximum earnings taxable is $97,500. That means workers must pay Social Security tax on the first $97,500 of earnings for the year; any wages above that amount are not subject to Social Security taxes. However, there is not a limit for Medicare tax. A taxpayer’s total annual wages are subject to Medicare tax.

2/12/07

Question:
I am nearing my full retirement age, and I am wondering whether I should apply for Social Security benefits. I have heard that I can receive more money each month through delayed retirement credits by waiting to collect benefits. Can you explain this to me?

Answer:
If you were born between 1943 and 1954, your full retirement age is 66. This means that if you start receiving benefits at age 66, you will get 100 percent of your monthly benefit.

However, if you delay receiving retirement benefits until after your full retirement age, your monthly benefit continues to increase.

For example, the yearly rate of increase in Social Security retirement benefits for anyone born after 1943 is 8 percent. This 8 percent increase compares favorably with current average interest earnings rates on bank savings accounts.

Of course, the total benefits increase you would receive would depend on the number of months you delay the start of your retirement benefits. At age 67, you would get 108 percent of the monthly retirement benefit because you delayed getting benefits for 12 months.

At age 70, you would get 132 percent of the monthly benefit because you delayed getting benefits for 48 months. When you reach age 70, your monthly benefit stops increasing, even if you continue to delay receiving benefits. And once you reach full retirement age, your income does not affect your Social Security benefits.

So, in other words, there is no additional advantage to putting off benefits once you’ve reached age 70. It is also important to remember that each additional year you work adds another year of earnings to your Social Security record. Higher lifetime earnings may mean higher benefits when you retire.

If you are considering postponing retirement for financial or other reasons, Social Security has a couple of handy online calculators that can quickly give you an idea of how much extra money you could expect by working beyond your full retirement age. Just visit Social Security’s website at www.socialsecurity.gov/OACT/quickcalc/early_late.html#late.

Question:
Do I have to pay income tax on my Social Security benefits?

Answer:

Some people who get Social Security will have to pay taxes on their benefits. Less than one-third of our current beneficiaries pay taxes on their benefits. You will have to pay taxes on your benefits if you file a federal tax return as an "individual" and your total income is more than $25,000. If you file a joint return, you will have to pay taxes if you and your spouse have a total income that is more than $32,000. For more information call the Internal Revenue Service's toll-free number, 1-800-829-3676.

2/05/07

Question:
I started receiving Social Security benefits last year. What does Social Security provide so that I can use as proof of the total benefits that were paid to me?

Answer:

You will be glad to know your Social Security Benefit Statement, or Form SSA-1099, can be expected to arrive in the mail this month. Beneficiaries will need this 1099 Benefit Statement to complete their federal income tax return and to find out whether their benefits are subject to income tax. Generally, you have to pay taxes on your Social Security benefits if your total annual income is more than $25,000 as an individual or $32,000 for a couple. Fewer than a third of beneficiaries pay taxes on their benefits.

The Benefit Statement shows the gross amount of benefits that were due and the net amount of benefits paid. The 1099 also shows the amount of any payments (such as Medicare premiums) that were withheld. The 1099 Benefit Statement should not be confused with the Social Security Statement, which is mailed to all workers age 25 or older not yet receiving benefits and gives an estimate of future benefits available.

The 1099 Benefit Statement, mailed in January, reports the amount of benefits a person has received in the past year. Benefit Statements are only sent to individuals who received Social Security benefits in the prior year, so you will only receive one if you were paid Social Security benefits in 2006. People who get Supplemental Security Income (SSI) do not receive Benefit Statements, since SSI is based on need and is not considered taxable income. If you got Social Security benefits in 2006 and you do not find a Social Security Benefit Statement in your mailbox by January 31, or if you need a replacement copy, you can request one online by visiting our website at www.socialsecurity.gov/onlineservices. Or you can call Social Security’s toll-free number, 1-800-772-1213 (TTY 1-800-325-0778).

Question:
If I take early retirement at age 62 but do not receive all of my benefits because of work, will I always be reduced for age 62?

Answer:

No. SSA refigures the reduction factor in the month full retirement age is attained. At that time, any month for which a benefit was not paid because of the annual earnings test is eliminated from the reduction factor. The new higher benefit is payable for the month of attainment of full retirement age and all subsequent months.

Question:
My mother died January 4. Is her estate entitled to the check which will arrive on February 3? If not, why?

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.

1/29/07

Question:
I adopted my 11 year old grandson recently, and I am presently receiving social security. Is he eligible to receive social security under my record?

Answer:

A child must be dependent upon the worker (you) to qualify for benefits on the worker's Social Security record. The factors that determine whether a child is dependent upon the worker vary, depending upon whether the worker is the natural parent, step parent, grand parent, or the legally adopting parent. The dependency "test" is different depending on whether the adoption took place before or after you began receiving benefits. If you adopted the child after becoming entitled to either retirement or disability benefits, the dependency requirement is met only under the following circumstances. The child must have been legally adopted by you in an adoption decreed by a U.S. court. In addition, the child must have been under the age of 18 when adoption proceedings began, or the child must have been receiving one-half support from you for the year immediately before the month that the adoption was decreed. If you are not sure that the child would meet the dependency rules, you can still apply on the child's behalf, and allow Social Security to make a formal decision. The number to call is 1-800-772-1213 any weekday from 7 a.m. to 7 p.m. It is best to call early or late during those hours.

Question:
I moved to a new address after applying for a new Social Security card. I didn’t receive the card before moving. What do I do now?

Answer:

Notify the post office of your change of address , and in some cases the post office may forward your card to your new address. However, if you do not receive your card within a few weeks, contact your Social Security field office to get a replacement card. To learn more, visit our Social Security Number and Card page at http://www.socialsecurity.gov/ssnumber/, or call us at the toll-free number, 1-800-772-1213.

Question:
My application for Social Security disability benefits was denied and I need to appeal. Do I need to hire a lawyer?

Answer:

Many people handle their own Social Security appeals, but you may choose to have someone help you with your appeal or to represent you. Your representative may be a lawyer or other qualified person familiar with you and the Social Security program. Social Security will work with your representative or with you. If you want more information about having a representative, visit Social Security online at www.socialsecurity.gov/pubs/10075.html and read “Your Right To Representation” or call the toll-free number,1-800-772-1213, to request a copy.

1/22/07

Question:
I started receiving Social Security benefits last year. What will Social Security send me as proof of the benefits I received for the purpose of completing my tax return?

Answer:

Since you received Social Security benefits, you will be glad to know your Social Security Benefit Statement, or Form SSA-1099, can be expected to arrive in the mail this month. Beneficiaries will need this 1099 Benefit Statement to complete their federal income tax return and to find out whether their benefits are subject to income tax. Generally, you have to pay taxes on your Social Security benefits if your total annual income is more than $25,000 as an individual or $32,000 for a couple. Fewer than a third of beneficiaries pay taxes on their benefits. The Benefit Statement shows the gross amount of benefits that were due and the net amount of benefits paid. The 1099 also shows the amount of any payments (such as Medicare premiums) that were withheld.

The 1099 Benefit Statement should not be confused with the Social Security Statement, which is mailed to all workers age 25 or older not yet receiving benefits and gives an estimate of future benefits available. The 1099 Benefit Statement, mailed in January, reports the amount of benefits a person has received in the past year. Benefit Statements are only sent to individuals who received Social Security benefits in the prior year, so you will only receive one if you were paid Social Security benefits in 2006. People who get Supplemental Security Income (SSI) do not receive Benefit Statements, since SSI is based on need and is not considered taxable income. If you got Social Security benefits in 2006 and you do not find a Social Security Benefit Statement in your mailbox by January 31, or if you need a replacement copy, you can request one online by visiting our website at www.socialsecurity.gov/onlineservices. You can also call Social Security’s toll-free number, 1-800-772-1213 (TTY 1-800-325-0778). For more information on taxation of Social Security benefits, call the Internal Revenue Service’s toll-free number, 1-800-829-3676, to ask for Publication 554, Tax Information for Older Americans.

Question:
I’m 55 years old and have worked since I was 18. So I have well over the 40 credits I need to qualify for Social Security. Why do I have to keep paying Social Security taxes if I already qualify for maximum benefits?

Answer:

As long as you are working, the law requires Social Security tax withholding for almost all wage earners. Only some government employees and career railroad workers are exempt from Social Security taxes because they pay into a separate retirement fund. In addition, you should not confuse the eligibility rules with the benefit calculation rules. Although you need only 10 years, or 40 credits of coverage, to be vested in Social Security, your retirement benefit is based on your highest 35 years of earnings. In other words, if you were allowed to drop out of Social Security after meeting the 10-year vesting rule, you would receive a very small Social Security benefit when you reach retirement age, because we would have to add 25 years of “zero” earnings into your retirement calculation.

1/08/07

Question:
I am 43 years old and make decent money. How much can I count on getting from Social Security when I retire?

Answer:

Get an estimate by using one of the benefit calculators on our website at www.socialsecurity.gov/planners/calculators.htm . You also can find out just what you might expect from Social Security by checking your Social Security Statement, which is mailed each year to all workers age 25 and older approximately three months before their birthday. This Statement is intended to help you plan your financial future by providing estimates of the monthly Social Security retirement, disability and survivors benefits you and your family could be eligible to receive now and in the future. To learn more about the Statement, visit www.socialsecurity.gov/mystatement .

Question:
I moved to a new address after applying for a new Social Security card. I didn’t receive the card before moving. What do I do now?

Answer:

Question:
My application for Social Security disability benefits was denied and I need to appeal. Do I need to hire a lawyer?

Answer:

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