Learn About Your Social Security Benefits so That You Can Make the Most of Them
Posted on: August 10, 2017 By: SeniorChoices NW
After paying into Social Security, it’s time to finally collect. However, understanding your Social Security benefits can be difficult. With so many rules, figuring out when to draw your Social Security benefits may be more difficult than you thought. Check out these facts about Social Security benefits that may help.
Social Security is taken out of your paycheck as you work over the years. However, it’s important that you review the amount that’s taken so that you can ensure that the funds are correct. There is a limit of three years and three months that you can make a correction, so be vigilant and correct any errors so that you’re better apt to get the right amount in social security.
In certain circumstances, members of your family may qualify for benefits. If you have dependents, whether they’re your kids, grandkids, or even parents, social security may offer some benefits. Review the eligibility requirements so that you’re well prepared with the correct information.
You May Owe Taxes.
Social Security benefits provide you with an income. When April 15th rolls around, depending on your income, up to 85% of your social security could be taxed. Since the income limits haven’t kept up with the rising wages, it’s expected that the number of beneficiaries that pay tax on their Social Security benefits will increase to more than 50% will over the next 30 years. Keep in mind that you may owe taxes so that you can plan accordingly.
Protection from Private Creditors.
The government can garnish your monthly benefits to recoup debts such as federal taxes, federal student loans, child support, alimony, and restitution. But unless your Social Security benefits are deposited into an account with mixed funds, it is protected from private creditors.
Changing Your Mind about Filing for Benefits.
For those that may have filed to receive benefits early at the lower amount, you have 12 months to withdraw your application. The catch is that you will have to repay all of the money received. If you miss the one-year deadline, you do have the option of continuing to receive the lower amount of monthly benefits until your full retirement age, then you could suspend benefits without having to repay those you already received. Your benefits will grow 8 percent annually until age 70, then you could refile to receive benefits at the maximum amount.
If you are already drawing Social Security benefits when you turn 65, you are automatically enrolled in Medicare Parts A & B. If you are not drawing Social Security benefits and do not have health insurance coverage through active employment, you will need to make sure to enroll in Medicare to avoid late enrollment penalties.
When it comes to your retirement and drawing Social Security, SeniorChoices NW can help make sure you know the timelines to ensure that you have adequate coverage and avoid penalties. Contact us today.