how do i find out if someone is using my social security number
If you're thinking most retiring soon or are nearing your 60th birthday, you're probably too starting to wonder more about Social Security benefits. There's a lot to learn and some of the rules can get complex, which can make understanding how and when to get benefits — and what they include — somewhat of a challenge. Before you lot begin the process of applying for Social Security, get started by reviewing some of the basics about the program to answer some common questions you might accept.
The Background and Purpose of Social Security
First things kickoff: What is Social Security? Originally signed into law by President Franklin D. Roosevelt in 1935, what we call Social Security actually refers to what'due south officially known every bit Old Age, Survivors and Inability Insurance. It's funded past payroll taxes — money paid out past employees via paycheck deductions and by employers — and is a class of social insurance administered past the U.S. federal government. This means that information technology's a program that involves the regime participating in the insurance market to provide extra assistance to certain groups and protect them against financial issues that arise afterwards emergencies.
Perhaps the all-time-known and largest component of Social Security is the retirement benefits information technology pays out. In that example, these payments are intended to continue people who worked lower-wage jobs throughout their lives from living in relative poverty when they leave the workforce as they age. However, the Social Security Assistants (SSA) also makes payments to people with disabilities who cannot work and to survivors of workers who've died. Co-ordinate to the SSA, the purposes of these payments are "to provide for the material needs of individuals and families, "to protect aged and disabled persons confronting the expenses of illnesses that may otherwise use up their savings" and "to keep families together."
It'south important to note that Social Security benefits are intended to exist supplemental — that is, they're not supposed to serve every bit someone'due south sole source of income when they retire. The do good payments are meant to provide a heave to other retirement income, such as a pension.
Social Security Eligibility: The Credit System
Depending on your life circumstances, you could exist eligible to receive Social Security benefits at any historic period — not merely the traditional retirement age of 62. For example, to receive disability benefits, you may be eligible at nearly whatever age every bit long as you've worked long enough and recently enough and have a qualifying medical status that limits your ability to piece of work. You lot may also be able to receive survivors benefits in some circumstances if you're a surviving family member of a deceased person who "worked long enough in jobs insured under Social Security to authorize for benefits."
Disability and survivors benefit payments have relatively straightforward eligibility requirements to come across. Social Security retirement benefits do as well, simply the ways eligibility and amounts are determined and the details involved can look somewhat complicated at offset glance. Understanding eligibility for Social Security benefits involves learning near credits first.
Your eligibility for receiving Social Security is based in office on credits that you earn while working. When yous're employed and Social Security taxes are deducted from your paycheck for receipt by the Internal Revenue Service (IRS) y'all kickoff earning credits. These credits are based on the amount of money yous earn each twelvemonth, and you tin earn upwards to four credits per yr. For example, in 2020, earning $1,410 in wages at your job earns you one credit. Using this number every bit another example, one time you've earned $five,640 ($1,410 x iv) in wages from your chore, you've earned your four credits for the yr and cannot earn more credits until the next twelvemonth. The base amount of money you lot demand to earn from your chore to earn one credit increases slightly each twelvemonth to account for inflation.
To qualify to receive Social Security retirement benefits, yous must earn at least 40 credits, which equates to 10 years' worth of work. Y'all don't need to work 10 sequent years to earn the credits, even so. Any credits you receive remain on your Social Security tape, and if you get out a job and return to the workforce years later, you can begin accumulating credits once more until you reach 40 and become eligible for benefits payments.
The number of credits needed to determine your eligibility for disability or survivors benefits depends on your age; generally speaking, the younger you are, the fewer the number of credits is that you need to become eligible. The historic period table on the Social Security Administration's website can give you a better thought of the number of credits relative to your age that yous'll need to have earned to make up one's mind eligibility for disability or survivors benefits.
What Role Does Your Age Play?
Equally mentioned, age can exist a determining factor in the number of credits you'll need for eligibility for two types of payments. However, when it comes to retirement benefits, your age can also play a role in not only when you're eligible to showtime receiving payments but also in the amounts of those payments. In particular, you'll want to think about the age at which you decide to first claiming your Social Security retirement payments.
The age when you start claiming determines whether you receive 100% of your Social Security benefits. If you're eligible to receive Social Security retirement benefits, you lot can commencement getting them as early as age 62. Still, your payment amounts volition be less than they are if you await until what's called your "full retirement age." This is the age at which yous're eligible to receive 100% of your benefit amount every calendar month, and it'south typically between ages 66 and 67, depending on the year yous were built-in. So, drawing earlier than your full retirement age results in you receiving a reduced amount in benefits — the Social Security Administration notes that you lot'll get about 28% less than yous would if you await until historic period 66.
Waiting until you're older than full retirement historic period to quit working and depict benefits can also touch the amount you receive every month. Because you're working longer, you'll receive a larger monthly amount than if you retired at 66. For each month you filibuster challenge benefits, the amount you can receive monthly increases slightly, and if you lot wait until historic period 70, you'll get 132% of your Social Security do good amount. Once you plough 70 and haven't started claiming still, your benefit corporeality won't keep increasing, so that 132% is the most you can get each calendar month if you delay claiming to continue working.
Source: https://www.askmoney.com/investing/understanding-your-social-security-benefits?utm_content=params%3Ao%3D1465803%26ad%3DdirN%26qo%3DserpIndex
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