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Reasons You Can Lose Your Social Security Benefits

By: Sahil Luthra

American Street

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Social Security Benefits

Social Security serves mostly older retirees, but also the disabled through Social Security Disability Insurance (SSDI).

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To Save Your Social Security benefits

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.

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Only By Claiming Early

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

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Losing By Claiming Early

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.

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If Earn Too Much Money

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.

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When You Earn Too Much 

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.

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If Finds You Convicted 

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.

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Lose Benefits to Taxes

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. 

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Lose SSDI Going back to work

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.

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Reaching full retirement age

As you reach full retirement age, the SSA will automatically stop distributing SSDI benefits and start making traditional Social Security payments.

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When You Are Incarcerated

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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