SECTION THREE

Do You Know How Much Social Security You've Earned?

How Much Will You Get From Social Security?

What's In A Social Security Number?

What Are Social Security Numbers Used For?

Changing Your Name On Your Social Security

There Are Three Types Of Social Security Cards

How To Apply For A Social Security Card

How To Reach The Social Security Administration

How Social Security Works

Family Coverage

How Benefits Are Figured

What If You Didn't Earn Enough Social Security Benefits?

What Is Supplemental Security Income?

Income And Asset Limits For SSI

How Much Will You Get From SSI

How And When To Write For Social Security?

What Records Do You Need?

How Will You Get Social Security Payments?

Retirement Benefits

Age To Receive Full Social Security Benefits

What Happens At Age 62?

What If You Apply For Late Retirement?

Retirement Benefits For Widow(er)s

Benefits For Family Members

Spouse's Benefits

Are Your Benefits Taxable?

What If You Leave The United States?

Medicare Information

Is There Help For Low-Income Medicare Beneficiaries?

Disability And Social Security

How Does Social Security Define "Disability?"

Who Can Get Social Disability Benefits?

Certain Family Members May Qualify For Disability Benefits If You Should Die

Can I Apply For Disability With HIV Infection?

Disability For Children

How Much Work Is Required Before You Can Apply For Disability?

How To Apply For Disability?

Who Decides If You Are Disabled?

There Are Five (5) Steps In Determining Disability

Rules For Blind Persons

What If Your Claim Is Denied?

You May Be Disabled If You Have

If approved, When Will I Get My First Check?

How Muck Will I Get From Social Security?

How Other Payments Affect Benefits

Other Disability Benefits

Government Pension Offset

Pension From Work That Is Not Covered By Social Security

What Causes Benefits To Stop?

Going Back To Work-Benefits While You Work

Life Insurance From Social Security

Work Credits Needed

Who Can Get Survivors Benefits?

Special One-Time Death Benefit

Benefits For Divorced Spouses

How Much Are Benefits?

If My Loved One Has Died-How Do I Apply For Benefits?

If You Aren't Getting Social Security Benefits

If You're Already Getting Social Security Benefits

How Much Will You Get?

Maximum Family Benefits

How Work May Affect Your Benefits

If You Remarry

If Your Self-Employed

Paying Social Security And Medicare Taxes

Earnings Credits

Figuring Your Net Earnings

Do Not Include The Following In Figuring Your Net Earnings

Optional Method

Here's How It Works

Special Note For Farmers

How To Report Earnings

Church Workers

Family Business Arrangements

Personal Earnings And Benefit Estimate Worksheet

Social Security Form SSA-7004

It is important that your family know the amount of Social Security benefits that are credited to your individual Social Security account.

You should request your Social Security earned credits every three (3) years because after a three (3) year period the amounts credited can no longer be questioned. Most people need forty (40) credits (10 years of work) in order to qualify for benefits. Extra credits do not increase benefits, however, the income you earn while working will increase your benefit. Benefits are not paid automatically. If you want a statement of your Social Security account, call the Social Security Administration at 1-800-772-1213, between 7 A.M. and 7 P.M. each business day, and request they mail you a "Personal Earnings and Benefit Estimate Statement". Be sure to include your Social Security number. There is no charge for this service. Or write: Social Security Administration, P.O.Box 57, Baltimore, MA. 21203. *(Two forms are enclosed at the end of this section)

Your Social Security benefits are based on your date of birth, type of benefit you apply for and your earnings.

WHAT'S IN A SOCIAL SECURITY NUMBER?

The first three (3) digits indicate that state where you applied for a card. The numbers change as the increase in applications for Social Security cards increases.

The second set of digits doesn't mean anything but are a related state code. The last four (4) digits are assigned in numerical order with the exceptions of twins, triplets, or other multiple births which are not given in numerical order.

WHAT ARE SOCIAL SECURITY NUMBERS USED FOR?

* Applying for a job * Apply for a loan

* Open a bank account * Driver's license

* To get a passport * File income tax

* Receive insurance payment * Open a brokers account

* To request a credit rating * Enroll as a student

Your Social Security number can be changed if your records were confused with someone else's, who just so happens to have your same name and birth date or if someone uses your number illegally. If you change your name when you get married, divorced or change it legally for any other reason you need to call Social Security at 1-800-772-1213 and request a SS-5 Form. You must provide such documents as your marriage license, divorce decree, or other legal proof. Your Social Security number doesn't change, but the corrections do, and your credits remain the same.

The basic card goes to people and citizens who live permanently in the United States. The second card is for people who are in the country legally, but for a limited time only. Their cards are stamped "Not Eligible For Employment", and are not eligible for benefits. The third card stamped "Valid For Work Only With INS Authorization", allows legal immigrants to get jobs and to qualify for benefits.

Go to your nearest Social Security office and request a SS-5 Form and submit it along with proof of citizenship, your birth certificate, proof of your age and identity (such as a passport, baptismal certificate, school record, hospital record, etc). If you are under the age of eighteen (18) you can request Form SS-5 through the mail but if you are over the age of eighteen (18) you must appear in person. Be sure when sending your request through the mail you send it certified mail so that you have proof that you requested it. Also if you are unable to go to the Social Security office in person due to health problems you can request that the Social Security office send someone to your home.

HOW TO REACH THE SOCIAL SECURITY ADMINISTRATION

The Social Security Administration has over 1,300 offices in cities and towns across America. You can get information twenty-four (24) hours a day or speak to a service representative between 7 A.M and - 7 P.M. on business days. If you have a push button telephone, recorded information and services are available after 7 P.M. weekdays and all day on weekends and holidays. If you want to speak to a representative, it is best to call early in the morning and early in the evening. If possible, it is better to call later in the week and later in the month. Be sure and have your Social Security number available before calling.

It's simple! You pay taxes into the system during your working years. You and members of your family will receive monthly benefits when you retire or become disabled. Or, your survivors can collect benefits when you die. Social Security is not intended to be your only source of income. Instead, it is meant to be used to supplement the pensions, insurance, savings, and other investments you will accumulate during your working years.

When you qualify for Social Security retirement benefits you will get them for as long as you live. Your spouse and other dependents can collect while you are collecting and even after your death. If you and your spouse both qualify for Social Security, you each can collect on your own account when you retire. Remember your spouse and other dependents aren't eligible to collect until you collect your benefits.

Your Social Security benefits are figured and averaged out over your working lifetime and from the following:

* The number of years of earnings are used as a base

* Adjustments of earnings are made to compensate for inflation

* Your average adjusted monthly earnings are based on figures used from your number of years of earnings

* Your average adjusted earnings are multiplied by percentages which are formulated and specified by law. That formula results in benefits which replace about forty-two (42) percent of a person's earnings. It only applies to people who have or had average earnings during their working lifetime. The percentage is lower for people in the upper brackets and higher for people in lower income brackets.

 

 

If you haven't worked long enough to get Social Security, or if you get only a small amount, you may be eligible for Supplemental Security Income, or SSI.

Supplemental Security Income is usually called "SSI" for short. Although this program is run by the Social Security, the money to pay for SSI benefits does not come from Social Security taxes or Social Security trust funds. SSI payments are financed by the general revenue funds of the U.S. Treasury.

SSI makes monthly payments to people who have low incomes and few assets. In addition, to get SSI you must:

* Be living in the U.S. or the northern Mariana Islands or

* Be a U.S. citizen or be living in the U.S. legally and you must be or

* 65 or older or

* Blind or

* Disabled

Children as well as adults can get SSI benefits because of blindness or disability.

To get SSI, your income and the value of the things you own must be below certain limits. By the term income, meaning the amount of money you have coming in such as earnings, Social Security, or other government checks, pensions, etc. The Social Security office also wants to know about "non-cash" items you receive such as the value or free food and shelter.

How much income you can have and still get SSI depends on whether you work or not and in which state you live. Although there is a basic national SSI payment rate, some states add money to the national SSI payment, so they have higher SSI rates and higher income limits than others. Check with your local Social Security office to find what the SSI rates and income limits are in your state.

Assets are the things you own such as property, cash, and bank accounts. But they don't count everything you own when they decide if you get SSI. For example, they don't count your home and many of your personal belongings, and they usually don't count your car. You may be able to get SSI if the things you own are worth no more than:

* $2,000.00 for one person or

* $3,000.00 for a couple

Unlike the income category, these limits do not change from state to state.

How much you will get from SSI depends on your other income and where you live. The basic monthly SSI check is the same in all states - $446.00 for one person and $699.00 for a couple. But some states add money to the basic rate, so you may get more if you live in one of these states. You will get less if you have other income or if someone helps pay for food and shelter.

* Call 1-800-772-1213 and ask to set an appointment for disability, survivor's, and Social Security benefits, apply as soon as you are eligible

* For retirement, apply in the year before the year you plan to retire

 

 

Here is a partial list to help you get started. When you actually sign up for Social Security they will inform you if other documents are required.

* Your Social Security card or number

* Your birth certificate

* Children's birth certificates (If applicable)

* Marriage certificate (If applying under spouse's record)

* Most recent W-2 Form, or tax return if self-employed

Don't delay in signing up just because you do not have the above documents. The Social Security office will aid you in getting the necessary documents that you need.

Your benefits can either be deposited directly into your bank account or come to you in the mail. It is safer and easier for the government to deposit it directly into your bank account. If you choose direct deposit have your bank account number available.

If you were born before 1938, you will be eligible for your full Social Security benefit at the age of sixty-five (65). In the year 2000, benefits will increase in gradual steps from the age of sixty-five (65) to sixty-seven (67). This will effect people born in 1938 and later. If you were born in 1940, your full retirement age is sixty-five (65) and six (6) months. If you were born in 1950, your full retirement age is sixty-six (66). Anyone born in 1960 or later will be eligible for full retirement at age sixty-seven (67).

1937 or earlier 65

1938 65 and 2 months

1939 65 and 4 months

1940 65 and 6 months

1941 65 and 8 months

1942 65 and 10 months

1943-1954 66

1955 66 and 2 months

1956 66 and 4 months

1957 66 and 6 months

1958 66 and 8 months

1959 66 and 10 months

1960 and later 67

No matter what your full retirement age is, you may start to receive benefits as early as age sixty-two (62). But, if you ask for it to start at age sixty-two (62), you will only get five-ninths of one percent for each month before your full retirement age. If your full retirement age is sixty-five (65) and you sign up at age sixty-four (64), you will only receive 93 and 1/3 % of your full benefit. At age sixty-two (62) you will only get 80%. (NOTE: The reduction will be greater in future years as the full retirement age increases). The advantage for taking benefits your full retirement age is that you collect benefits for a longer period of time. The disadvantage is that your benefit is permanently reduced.

If you decide to work full time beyond full retirement age, your Social Security benefit will increase in two (2) ways.

Your extra earned income usually will increase your average earnings (the higher your average earnings, the higher your Social Security benefit)

* A special credit is given to those who retire late. This credit (which is a percentage) is applied to your Social Security benefit and varies according to your date of birth. If you decide to retire late be sure to sign up for Medicare at age sixty-five (65).

 

 

 

Widow(er)s can begin to receive benefits at age sixty (60) or age fifty (50) if disabled. If you are receiving widows or widowers benefits (including divorced widows or widowers), you can switch to your own retirement benefits as early as age sixty-two (62) (if you are eligible). Rules vary depending on each situation. Contact a Social Security representative regarding your situation.

If you are receiving retirement benefits, so can your family members. Those who qualify are:

* Wife or husband age sixty-two (62) or older

 

* Wife or husband under the age of sixty-two (62), only if he/she is taking care of your child under the age of sixteen (16), or disabled

 

* Former wife or husband age sixty-two (62) or older

 

* Children up to the age of eighteen (18)

 

* Children 18-19, if they are full-time students up to the 12th grade

 

* Disabled children over the age of eighteen (18)

 

 

 

 

SPOUSE'S BENEFITS

A spouse receives one-half of the retired worker's full benefit unless the spouse begins collecting benefits before age sixty-five (65). If so, the amount of the spouse's benefit is permanently reduced by a percentage based on the number of months before he/she reaches age sixty-five (65). If your spouse is taking care of a child under the age of sixteen (16) or is disabled and receives Social Security benefits, your spouse will get the full benefits, regardless of age.

Yes! People who have substantial income in addition to getting Social Security will pay taxes on their benefits. At the end of each year, you will receive a "Social Security Benefit Statement" in the mail stating the amount of benefits that you have received. You use this statement to report on your federal income tax return. For more information, call the Internal Revenue Service's toll free number 1-800-829-3676. Ask for information on "Tax Information for Older Americans" and "Social Security Benefits and Equivalent Railroad Retirement Benefits".

Pensions from work not covered by Social Security if you get a pension from work where you paid Social Security taxes, it will not affect your Social Security benefits. However, if you get a pension from work that was not covered by Social Security (for example, The Federal Civil Service or some state or local government employment), your Social Security benefit may be lowered or offset. For more information, call Social Security and ask for factsheets "Government Pension Offset" - For government workers who may be eligible for Social Security benefits on the record of a husband or wife and a "A Pension From Work Not Covered By Social Security" - for government workers who also are eligible for their own Social Security benefits.

If you plan on leaving the United States and are a U.S. Citizen, you can travel or live in most foreign countries without affecting your eligibility for Social Security benefits. Although there are a few countries such as - Cambodia, Cuba, North Korea, Vietnam and many of the former republics (except Estonia, Latvia, and Lithuania) of the U.S.S.R. - Where we cannot send Social Security checks. If you work outside the United States, different rules apply in determining if you can get your benefit checks. Most people who are neither U.S. Citizens will have up to fifteen (15) percent of their benefits withheld for federal income tax. For more information, call 1-800-772-1213 and ask for booklet "Your Social Security Checks While You Are Outside The United States.

Medicare is a health insurance plan for people who are sixty-five (65) years or older. People who are disabled or have permanent kidney failure can get Medicare at any age. Medicare is divided into two (2) - parts (hospital insurance and medical insurance). Most people have both. Hospital insurance covers inpatient hospital care and certain follow-up care. You have already paid for this as part of your Social Security taxes while you were working. Medical insurance pays for Physicians' services and some other services not covered by hospital insurance. Medical insurance is optional, and a premium is charged. Most people are already getting Social Security benefits when they turn sixty-five (65), and their Medicare starts automatically. For more information on Medicare call 1-800-772-1213 and ask for booklet "Medicare".

Yes there is! If you have a low income and few resources, your state may pay your Medicare premiums and, in some cases, other "out of pocket" Medicare expenses such as deductibles and coinsurance. Only your state can decide if you qualify for help under this program. If you think you qualify, contact your state or local medical assistance Medicaid Agency, Social Security Office, or Welfare Office. For more information, Call 1-800-772-1213 and ask for the leaflet on "Medicare Savings For Qualified Beneficiaries".

DISABILITY AND SOCIAL SECURITY

Disability insurance is the most complicated Social Security program. No benefits are paid unless you're unable to earn more than $500.00 a month, or you're so sick that you're going to die. Disability is something most people do not think about. Social Security pays cash benefits to people who are unable to work for a year or more because of a disability. Benefits continue until a person is able to work again on a regular basis and a number of work incentives are available to ease the transition back to work. You are eligible for disability if you have earned twenty (20) credits within the ten (10) years prior to your disability.

Disability under Social Security is based on your inability to work. You will be considered disabled if you are unable to do any kind of work for which you are suited and your disability is expected to last for at least a year or to result in death. The program assumes that working families have access to other resources to provide support during periods of short-term disabilities, including worker's compensation, insurance, savings, and investments. It is designed to provide a continuing income to you and your family when you are unable to do so. Benefits continue as long as you remain disabled.

You can receive Social Security disability benefits at any age. If you are receiving disability benefits at age sixty-five (65), they become retirement benefits, although the amount remains the same. Certain members of your family may also qualify for benefits under your record. They include:

* Your unmarried son or daughter, including a step-child, adopted child, or, in some cases, a grandchild. The child must be under eighteen (18) or under nineteen (19) if in high school full time.

 

* Your unmarried son or daughter, eighteen (18) or older, if he or she has a disability that started before the age of twenty-two (22). (If a disabled child under eighteen (18) is receiving benefits as a dependant of a retired, deceased, or disabled worker, someone should contact Social Security to have his or her checks continued at eighteen (18) on the basis of disability).

 

* Your spouse who is sixty-two (62) years or older, or any age if he or she is caring for a child of yours who is under sixteen (16) or disabled and also receiving checks.

 

 

 

CERTAIN FAMILY MEMBERS MAY QUALIFY FOR DISABILITY BENEFITS IF YOU SHOULD DIE. They include:

* Your disability widow or widower fifty (50) years or older. The disability must have started before your death or within seven (7) years after your death. (If your widow or widower caring for your children receives Social Security checks, he or she is eligible if he or she becomes disabled before those payments end or within seven (7) years after they end).

 

* Your disabled ex-wife or ex-husband who is fifty (50) years or older, if the marriage lasted ten (10) years or longer.

 

 

 

People with HIV infection or aids may qualify for disability benefits when they are no longer able to work or when they must severely limit the amount of work they do because of the disease. Some people with HIV infection that has not progressed to aids may be just as severely disabled as a person with aids and, therefore, just as likely to qualify for disability. For more information, call 1-800-772-1213, and ask for booklet, "A Guide To Social Security and SSI Disability Benefits For People With HIV Infection".

Social Security benefits are payable to people of any age with a disability, including children. Social Security dependents benefits are payable to children under eighteen (18) if a parent is receiving retirement or disability benefits or is deceased. These benefits may also be paid to children eighteen (18) or older who were disabled before age twenty-two (22). Benefits continue into their adult years as long as they remain disabled. For more information, call 1-800-772-1213, and ask for booklets "Social Security and SSI Benefits For Children With Disabilities".

To qualify for Social Security disability benefits, you must have worked long enough and recently enough under Social Security. You earn up to a maximum of four (4) credits per year. The amount of earnings required for a credit increases each year as general wage levels rise. Family members who qualify for benefits on your work record do not need work credits. The number of work credits needed for disability benefits depends on your age when you become disabled.

* Before age twenty-four (24) - You need six (6) credits in the three (3) year period ending when your disability starts.

 

 

* Age twenty-four (24) to thirty-one (31) - You need credit for having worked half the time between twenty-one (21) and the time you become disabled.

 

* Age thirty-one (31) or older - You need the number of work credits shown in the following chart. Also, you must have earned at least twenty (20) of the credits in the ten (10) years immediately before you became disabled. (This does not apply to blind applicants)

31 through 42 20

44 22

46 24

48 26

50 28

52 30

54 32

56 34

58 36

60 38

62 or older 40

HOW TO APPLY FOR DISABILITY?

Call 1-800-772-1213 as soon as you become disabled. Social Security disability benefits will not begin until the sixth full month of disability. This waiting period begins with the first full month after the date the Social Security Administration decided your disability began. The claim process for disability benefits is longer than for other types of Social Security benefits, generally from sixty (60) to ninety (90) days. It takes longer to obtain medical information and to assess the nature of the disability in terms of your ability to work. You can help to shorten the process by bringing certain documents with you when you go in person. These include:

* The Social Security number and proof of age for each person applying for payments. This includes your spouse and children, if they are applying for benefits.

 

* Names, addresses, and telephone numbers of doctors, hospitals, clinics, and institutions that treated you and dates of treatment.

 

* A summary of where you worked in the past fifteen (15) years and the kind of work you did.

 

* A copy of your W-2 form or if you are self-employed, your federal tax return for the past year.

 

* Dates of prior marriages if your spouse is applying.

 

After completing your application the Social Security office will review it to see if you meet the non-disability requirements of the law. Such requirements are:

* Have you worked long enough

 

* Have you worked recently enough for disability benefits

 

* Your age

 

* If you are applying for benefits as a family member, and

 

* Your relationship to the worker

 

 

 

The Social Security office will then send your application to the Disability Determination Services office in your state of residence. The Disability Determination Services office consists of a team of a Physician (or Psychologist) and a Disability Evaluation Specialists and they together will review all the facts and decide if you are disabled. They will get medical evidence from your doctors and from the hospitals, clinics, or institutions where you have been treated. The government pays a reasonable fee for any medical reports that it may need. If the Disability Determination Services has a problem in obtaining any of your records they may ask you to assist. If you have any copies of your medical report available, make a copy and give it to them, as this will help process your application faster. Your medical report should state, what is wrong with you, when it began, how it prohibits your activities, what the medical tests show and what treatment was provided. They may also ask about your ability to do work related activities such as, walking, sitting, lifting, and carrying. They are not asked to determine if you are disabled. If need be you may be asked to take a special examination called a "Consultative Examination". This examination will be performed at your medical facility by your doctor. Social Security will pay for this examination and any other related tests and for certain travel expenses. Once a decision is made you will be notified in writing from the Social Security Administration. If you are approved, the notice will state the amount of benefit you will receive and when your first payment will start.

1. Are you working? If you are and your earnings are more than $500 a month, you will not be considered.

 

2. Is your condition severe?

 

3. Is your condition found in the list of disabling impairments? The Social Security office has a list of disabling impairments for each of the human body parts. If your condition is not on the list, they must decide if it is severe enough to allow disability. If it is, you are approved and if not (See #4)

4. Can you perform the work you did previously? If your condition is severe, but not at the same or equal severity as an impairment on the list, then they must determine if it interferes with your ability to do the work you did in the last fifteen (15) years. If it does not, your claim will not be approved.

 

5. Are you able to do any other type of work? If you cannot do the work you did in the last fifteen (15) years, they will look to see if you can do any other type of work. They consider your age, skills, past work experience, education, and review job demands as determined by the Department of Labor. If you cannot do any other kind or work, your claim will be approved. If you can, your claim will be denied.

 

RULES FOR BLIND PERSONS

You are considered blind under the Social Security rules if your vision cannot be corrected to better than twenty (20) - two hundred (200) in your better eye, of if your visual field is twenty (20) degrees or less, even with a corrective lens. The rules blind persons recognize the severe impact of blindness on a person's ability to work. For example, the earnings limit for people who are blind is generally higher than the $500 limit that applies to non-blind disabled workers. This figure changes annually. For more information call 1-800-772-1213 and ask for leaflet "If You Are Blind - How Much Social Security and SSI Can Help?".

IF your claim is denied or you disagree with any decision the Social Security makes, you may appeal. The Social Security office will help you with the paperwork. There are four (4) levels of appeal. You have sixty (60) days from the time you receive the decision to file an appeal. For more information on appeals, call 1-800-772-1213 and ask for factsheet, "The Appeals Process". The administrative law judges have reversed more than sixty (60%) of the rejected applications. If the ruling goes against you and you feel you have a case take it to the Federal District Court.

* Aids or HIV infection

 

* Cancer

 

* Chronic arthritis

 

* Chronic obesity

 

* Emphysema

 

* Heart disease

 

* Kidney failure

 

* Loss of limbs

 

* Mental retardation

 

* Multiple personality

 

* Paralysis

 

* Schizophrenia

 

* Sight loss

 

 

Once a decision is made that you are disabled, you will receive your first Social Security disability check dating back to the 6th full month from the date Social Security decides your disability began. You will also get a booklet called "When You Get Social Security Disability Benefits - What You Need To Know", describing your responsibilities as a Social Security beneficiary.

Your monthly amount is based on your lifetime average earnings covered by Social Security. For estimates call 1-800-772-1213 and ask for a "Personal Earnings And Benefit Estimate Statement".

Eligibility for other government benefits can affect the amount of your Social Security disability benefits.

Social Security benefits may be affected if you are also eligible for worker's compensation (including black lung) or for disability benefits from certain Federal, State, Local Government, Civil Service, or Military Disability Programs. Total combined payments to you and your family from Social Security and any of these other programs generally cannot exceed eighty (80%) of your average current earnings before becoming disabled.

If you are a disabled widow or widower or the spouse of a disabled worker, a "Government Pension Offset" may reduce your Social Security payment. The offset applies if you become eligible for a Federal, State, or Local Government Pension based on your own work not covered by Social Security. The amount of your Social Security spouse's benefit may be reduced by two-thirds of the amount of your government pension. For more information call 1-800-772-1213 and ask for fact sheet, "Government Pension Offset".

If you become disabled and entitled to a Social Security disability and you also receive a monthly pension based on work not covered by Social Security, your disability payment will be smaller than normal. That's because the Social Security office uses a different formula to figure the Social Security benefit of people who get other public pensions. For more information, call 1-800-772-1213, and ask for factsheet, "A Pension From Work Not Covered By Social Security".

There are two (2) things that can cause the Social Security office to decide that you are no longer disabled and to stop your benefits.

1. Your benefits will stop if you work at a level the Social Security office considers "Substantial". Usually, average earnings of $500 or more are considered substantial.

 

2. Your disability benefits will also stop if the Social Security office decides that your medical condition has improved to the point that you are no longer disabled. You must promptly report any improvement in your condition, your return to work and certain other events as long as you are receiving benefits. These responsibilities are explained in the booklet you will receive when benefits start.

 

 

 

There are a number of special rules that provide cash benefits and medicare while you attempt to work. If you are receiving Social Security disability benefits, the following work incentives apply.

* Trial work period - For nine (9) months (Not necessary consecutive), you may earn as much as you can without affecting your benefits. (The nine (9) months of work fall within a five (5) year period before your trial work period can end). A trial work month is any month in which you earn more than $200. After your trial work period ends, your work is evaluated to see it is "Substantial". If your earnings do not average more than $500 a month. Benefits will generally continue. If earnings do average more than $500 a month, benefits will continue for a three-month grace period before they stop.

 

* Extended period of eligibility - For thirty-six (36) months after a successful trial work period, if you are still disabled, you will be eligible to receive a monthly benefit without a new application for any month your earnings drop below $500.

 

* Deductions for impairment - related expenses - Work expenses related to your disability will be discontinued in figuring whether your earnings constitute substantial work.

 

* Medicare continuation - Your medical coverage will continue for thirty-nine (39) months beyond the trial work period. If your medicare coverage stops because of your work. You may purchase it for a monthly premium. Different rules apply to SSI recipients who work. For more information about Social Security and SSI work incentives, call 1-800-772-1213, and ask for booklet "Working While Disabled - How Social Security Can Help".

 

 

Part of the Social Security taxes you pay goes towards survivors insurance. The value of the survivors insurance you have under Social Security is probably more than the value of your commercial life insurance. When someone who has worked and paid into Social Security dies, survivor benefits can be paid to certain family members. These include:

* Widows or

 

* Widowers or

 

* Children and

 

* Dependent circumstances

 

 

 

 

 

Survivors benefits can be paid only if you, the worker, have enough credit for work in jobs or self-employment covered by Social Security. Almost everyone who works earns four (4) credits per year. The number of credits you need for your survivor to receive benefits depends on your age when you die. For more information, call, 1-800-772-1213, and ask for booklet, "Retirement".

BORN AFTER 1929 CREDITS

28 or younger 6

30 8

32 10

34 12

36 14

38 16

40 18

42 20

44 22

46 24

48 26

50 28

52 30

53 31

54 32

55 33

56 34

57 35

58 36

59 37

60 38

61 39

62 or older 40

Under a special rule, benefits cannot be paid to your children and your spouse who is caring for the children even though you don't have the number of credits needed. They can get benefits if you have credit for 1 and ½ years of work in the three (3) years just before your death.

If you die, Social Security survivors benefits can be paid to your:

* Widow or widower - Full benefits at sixty-five (65) or older or reduced benefits as early as sixty (60). A disabled widow or widower can get benefits at 50-60.

* Widow or widower at any age if he or she takes care of your child under sixteen (16) or disabled who gets benefits.

* Unmarried children under eighteen (18) - or up to nineteen (19) if they are attending elementary or secondary school full time. Your child can get benefits at any age if he or she was disabled before twenty-two (22) and remains disabled. Under certain circumstances, benefits can also be paid to your step children or grandchildren.

 

 

There is a one-time payment of $255 that can be made. This payment can be made only to certain family members.

If you've been divorced, your former wife or husband can get benefits under the same circumstances as your widow or widower if your marriage lasted ten (10) years or more. Your former spouse, however, does not have to meet the length-of-marriage rule if he or she is caring for your child under sixteen (16) or disabled who gets benefits. Benefits paid to a divorced spouse who is sixty (60) or older (50-60 if disabled) will not affect the rates for other survivors getting benefits.

How much your family can get from Social Security depends on your average lifetime earnings. That means the higher your earnings, the higher their benefits will be. If you would like to get an estimate of the Social Security survivors benefits that could be paid to your family, call 1-800-772-1213 and ask for a "Personal Earnings and Benefit Estimate Statement". It will show an estimate of survivors benefits that could be paid, as well as estimates of retirement and disability benefits and other important information.

How you sign up for survivors benefits depends on whether or not you're getting other Social Security benefits.

You should apply for survivors benefits promptly because, in some cases, benefits may not be retroactive. Call 1-800-772-1213. The Social Security office will need the following information in order to process your application. But don't delay applying if you don't have everything. The people at Social Security will help you get it. They need either original documents or certified copies by the agency that issued them. The information needed is:

* Your Social Security number, as well as the worker's

 

* Your birth certificate

 

* Your marriage certificate if you're a widow or widower

 

* Your divorce papers if you're applying as a divorced spouse

 

* Children's birth certificate

 

* Children's Social Security numbers

 

* Deceased worker's W-2 or federal self-employment tax returns for the most recent year

 

* Your checkbook or savings passbook if you want your benefits deposited directly into your account. (Direct deposit is safer and more convenient for you and more efficient and economical for the government, or you can get them through the mail)

 

 

 

 

 

If you're getting benefits as a wife or husband on your spouse's record when he or she dies, you should report the death to Social Security and the Social Security office will change your payments to survivors benefits. If you're getting benefits on your own record, you'll need to complete an application to get survivors benefits. Call 1-800-772-1213, to see if you can get more as a widow or widower. They will need to see your spouse's death certificate to process your claim. Benefits for any children will automatically be changed to survivor's benefits after the death is reported to the Social Security office. The Social Security office will contact you if additional information is needed.

The amount of your benefit is based on the earnings of the person who died. The more he/she paid into Social Security, the higher your benefits will be. The amount you will get is a percentage of the deceased's basic Social Security benefit. The percentage depends on your age and the type of benefits you are eligible for. Below are typical situations:

* Widow or widower age 65 or older - 100%

* Widow or widower age 60-64 - 71 - 94%

* Widow any age with a child under the age of 16 - 75%

* Children - 75%

 

There is a limit to the amount of money that can be paid to you and other family members each month. The limit varies, but is generally equal to about 150 to 180 percent of the deceased's benefit rate. If the sum of the benefits payable to the family members is greater than this limit, the benefits will be reduced proportionately.

If you get Social Security survivors benefits, the amount of your benefits may be affected by your earnings from work. You can receive all your Social Security benefits in a year if your earnings don't go over certain limits. To find out what the limits are and how earnings can affect your Social Security benefits, call 1-800-772-1213 and ask for factsheet, "How Work Affects Your Social Security Benefits". There is no limit once you reach seventy (70). Your earnings will affect only your survivors benefits, not the benefits of other family members.

In general, you can't get survivors benefits if you remarry. But remarriage after sixty (60)- (fifty (50) if disabled) will not prevent benefit payments. And, if you remarry at sixty-two (62) or older, you get benefits on the record of your new spouse if they are higher.

You are considered 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 year, you must report your earnings on Schedule SE.

Your Social Security tax rates change annually on self-employment income. Call 1-800-772-1213 and ask for factsheet "If Your Self- Employed".

You need earnings credit to qualify for Social Security benefits. The number of credits you will need depends on your date of birth, but no one needs more than forty (40). You can earn up to four (4) credits per year. All of your earnings covered by Social Security are used in figuring your Social Security benefit. So, it is important that you report all of your earnings up to the maximum as required by law.

Net earnings for Social Security are your gross earnings your trade or business, minus all of your allowable business deductions and depreciation. Some income does not count for Social Security.

* Dividends from shares of stock and interest on bonds, unless you receive them as a dealer in stocks and securities

* Interest from loans, unless your business is lending money. Rentals from real estate, unless you are a real estate dealer or regularly provide services mostly for the convenience of the occupant

* Income received from a limited partnership

 

If your actual net earnings are less than $400, your earnings can still count for Social Security under an optional method of reporting. The optional method can be used if your gross earnings are $600 or more when your profit is less than $1,600. You can use the optional method no more than five (5) times. Your actual net must have been $400 or more in at least two (2) of the three (3) years, and your net earnings must be less than two-thirds of your gross income.

* If your gross income from self-employment is between $600 and $2,400, you may report two-thirds of your gross or your actual net earnings if $400 or more

* If your gross income is $2,400 or more and the actual net earnings are$1,600 or less, you report either $1,600 or your actual net

 

SPECIAL NOTE FOR FARMERS: If you are a farmer, you can use the optional method every year. You do not need to have had actual net earnings of at least $400 in any preceding year.

You must complete the following federal tax forms by April 15 following any year in which you have net earnings of $400 or more.

* From 1040 (U.S. individual income tax return)

* Schedule C (Profit or loss from business)

* Schedule SE (Self-employment tax)

These forms are available from the IRS and most banks and post offices. Send the tax return and schedules along with your self-employment tax to the IRS. Even if you do not owe any income tax, you must complete Form 1040 and Schedule SE to pay self-employment Social Security tax. This is true even if you already get Social Security benefits.

If you are considered self-employed because of your work for a church or church-controlled organization, you must report earnings of $100 or more. For more information, call Social Security at 1-800-772-1213, and ask for factsheet, "If You Are A Nonprofit Organization".

Family members may operate a business together. A business and a wife may be partners or joint ventures. If you operate a business together as partners, you should each report your share of the business profits as net earnings on separate schedules, even if you file a joint income tax return. The amount each of you should report depends upon our agreement.

Social Security benefits are only affected by earnings income.

* Annuity/Trust Funds income

* Certain retirement payments from a partnership

* Court-awarded damages

* Gifts/Inheritances

* Income from jury-duty

* Income from rental property-(unless you a dealer or rent out a farm under certain conditions)

* Interest Income-Tax exempt income is added you adjusted gross income to see how much of your Social Security can be taxed, if any.

* Sick Pay

* Stock Dividends

Once you receive your "Earnings and Benefit Estimate Statement" record it onto this form and update every three (3) years to make sure you get your earned credits. Use a pencil in the sections you need to update.

Full Name Social Security #

/ /

Age You Plan To Retire Date of Birth

Estimated Future Average Yearly Earnings

Estimated Social Security Taxes Paid

Estimated Medicare Taxes Paid

Age 62 - Reduced Benefits Available $

Age 66 - Full Retirement Benefits $

Age 70 - Benefits Available $

DISABILITY BENEFITS $

SURVIVOR BENEFITS

Your Child $

Your Spouse Caring For Your Child $

When Your Spouse Reaches Full Retirement $

For All Your Family Members $

One Time Death Benefit $

 

 

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