Did you know that you may be taxed on your Social Security income?
You might assume that since you’ve been putting money into Social Security over the course of your career, that the money you take out at retirement is free from taxes. Unfortunately, this isn’t necessarily the case.
I help a lot of people with Social Security. One thing they all have in common is that they’ve called their local Social Security office at least once. Most of these calls have ended in frustration. It doesn’t have to be that way. If you know who to ask for, you’ll get the help you need.
A decent part of my living comes from consulting with individuals throughout the nation with Social Security issues. For some, it’s simply determining how their filing strategy fits in with their overall retirement plan and making sure they haven’t missed anything. For others, I help solve complex Social Security problems. Many of these people that I help would never call me if they would have received a satisfactory answer and solid advice when they called their local Social Security office. So I may be hurting myself slightly, but I can’t stand to see any more bad (and sometimes non-reversible) decisions made as a result of incorrect guidance from the Social Security Administration. I’m going to tell you who to ask for the next time you call.
In 2012 there were 2.7 million grandparents who had primary responsibility for a grandchild under the age of 18, according to a recent US Census Bureau report. Many of these grandparents don’t know that Social Security retirement benefits for dependent grandchildren is a real possibility.
Retirement doesn’t always go as expected. It hasn’t for the some people I have worked with. Instead of the frequent traveling they had always planned for their retirement, they are raising their young grandchildren. There’s no sense of burden though, they strongly believe it’s a privilege to have the mental, financial, and physical health that affords them the chance to offer security to their grandchildren. I admire their attitude! I hope that I would feel the same if I were placed in their situation.
Although one of the couples had a well thought out retirement income plan, they’ve quickly discovered that the extra expense of raising kids will require them to increase their monthly cash flow. They were surprised when I advised them to file for Social Security benefits immediately. They had always planned to wait until full retirement age to file for benefits, but that all changed when they found out that by filing for their own benefits, they would turn on Social Security benefits to their dependent grandchildren as well.
It’s not one of the more well known benefits, but under the right conditions grandchildren (or step-grandchildren) can receive a benefit based on the work history of a grandparent.
Beginning this tax season, you won’t have to wait for the mail or at the local Social Security office if you’ve misplaced your SSA-1099. This form can now be easily printed from your home. The only requirement…you must have a My SSA Account. Sounds like another great reason to sign up! To see a few other reasons read our article on the My SSA Account
I recently had the pleasure of being a guest on one of the top rated investment/finance podcasts. While the topic – Social Security – will not be a surprise to any of my followers, this show is still a must listen even if this isn’t the episode for you. Forget the heavy language and jargon, Stacking Benjamins is a story-telling site. They share fresh thoughts on recent financial news reported in the media. In a world of hard-hitting, deep-thought financial stories, Stacking Benjamins goal is lighter, more relaxed entertainment about money.
Want to save a ton of money? Check your Social Security statement.
Two years ago, I helped a friend claim lots of money she didn’t know was rightfully hers, just by making her aware of a benefit she should have been receiving all along….if only she’d known how the Social Security system worked.
Behind universal health care, you can argue that it’s how to reduce spending and lower the deficit. Congressmen and lobbyists have thrown out many proposals, and it appears that even Social Security Benefits may not be immune to cutbacks. There is one proposal that we thought was dead…but now appears to be gaining steam. It might not ever pass, but it should be on your radar.
You’ve probably noticed that your Social Security benefits statement has a section with estimated benefit amounts. Most likely, for those born between 1943 and 1954, you’ll see an estimated payment amount at age 62, 66 and 70. While it’s common knowledge that you’ll receive less at 62 than you would at 66…have you ever wondered how it’s calculated? I think it’s important to know. Understanding how Social Security benefits are impacted by filing early – or for filing later – is crucial when building a Social Security filing plan.
You’ve probably noticed that your Social Security benefits statement has a section with estimated benefit amounts, but have you ever wondered how it’s calculated? I think it’s important to know and I’m going to show you how.