By: Sahil Luthra
Social Security serves mostly older retirees, but also the disabled through Social Security Disability Insurance (SSDI).
Keep these points in minds to save yourself from deduction of your any Social Security Benefits, if you collect benefits or plan to in the near future.
You will lose 30% of Your Benefits by only claiming early, full retirement age is 67, but if you claim at 66 and 11 months, you’ll receive only 99.4% of your full payment
If you claim at 65, you’ll receive 86.7%, you can claim as young as 62, but if you do you’ll receive only 70% of your full payment — for life, if you don’t withdraw your claim within a year.
If you claim early and continue to earn income, your Social Security check will reduce if you make too much money, you can earn up to $19,560 without seeing your benefits reduced.
If you earn more than $19,560, the SSA will withhold $1 for every $2 you earn above limit. If you’ll reach full retirement age later in the year, you can earn up to $51,960. After that, the SSA withholds $1 for every $3 earned.
The SSA will suspend your Social Security benefits, if you’re incarcerated for more than 30 days as a sentence for a criminal conviction, spouses and dependents will continue to collect.
If you earn more than $25,000 as a single filer or $32,000 as a joint filer, up to 85% of your Social Security benefits are fair game to the IRS.
The most common reason for SSDI termination is the beneficiary returning to work, these benefits are reserved only for people unable to engage in substantial gainful activity.
As you reach full retirement age, the SSA will automatically stop distributing SSDI benefits and start making traditional Social Security payments.
The SSA will suspend SSDI and SSI payments if you’re incarcerated for more than 30 days, SSI payments can begin the month after release except for recipients who are confined for more than 12 months.
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