When I wrote my article about Social Security Benefits, and how I thought I was going to receive two checks in April, I received an e-mail from subscribers David & Catherine.
David said, “Just a little info from what I know and have been told on the filing for Social Security benefits: (1) You are correct that Social Security pay in arrears but using your example of a February 08 birthday, benefits start in the month of March and March is paid in April. So your first check (deposited at bank) will be for only one month of March, not two months as you wrote. Your April will be paid in May etc. My wife started her benefits at 62 with a Jan 24th birthday so her first check (for February) was direct deposited the 4th Wed of March. (2) I have been told that if you file your application in Mexico, your benefits are paid the 3rd of each month without regard for your day of birth. This is info shared with me by friends here in Mexico who filed for SS benefits while living here.”
Well, David was absolutely right…my Social Security did not start until April and I only received one check, not two as I thought I might.
Thank you, David, for helping me to give our readers up-to-date information.
Also, this is a good opportunity to remind you of something else. When I was going through my yearly earnings with the representative, we found my social security number had been used in Connecticut for someone working for the board of education. This could have severely impacted the earnings I thought I was going to receive. Thank goodness this was the only anomaly in my earnings statement, and probably was a mistake on someone’s part, but it sure pays to check. Here’s some advice from the U.S. government site:
How Earnings Under A Stolen SSN Could Affect Your Benefits
A stolen Social Security number could potentially cause serious and costly problems, especially if you don’t move quickly to report problems, correct your record and continue ongoing vigilance for new problems. Here’s just a partial listing of what to watch out for:
- Benefit reductions due to excess earnings. Earnings showing up on your Social Security number could subject your Social Security benefits to reductions if you are under full retirement age. Social Security withholds $1 in benefits for every $2 over $13,560 in annual earnings ($1,130 per month).
- IRS audits and taxation of Social Security benefits. Added earnings that appear under your number could subject 50% to as much as 85% of your Social Security to tax if those earnings make your income appear to be over $25,000 or more (if you are single) or if over $32,000 (if you file jointly with you spouse). Since you would probably not be aware of those earnings by someone misusing your number, your first indication that there’s any problem could be a notice from the IRS that you may owe taxes.
- Letters saying you are no longer eligible, or not eligible at all, for “Extra Help” to cover prescription drug costs. “Extra Help” pays all or most of the monthly drug plan premiums and deductibles, much of the co-insurance, and provides coverage during the “doughnut hole” coverage gap for low-income seniors. If you are single and added earnings make your monthly income appear to be over $1,300 (or $1,750 if you are married), then you could be mistakenly dropped from the program, or told you are not eligible.
- Notifications that you are no longer eligible, or not eligible at all for “Medicare Savings Programs.” These programs cover the Medicare Part B premium for low-income seniors. If added earnings make your monthly income appear higher than $1,190 (if you are single) or $1,595 (if you are married), you could be mistakenly dropped from one of these programs, or told you are not eligible.
- Notifications that you must pay higher “income related” Medicare Part B premiums. In one particularly egregious case cited by the Government Accountability Office, a single employer used one Social Security number for 2,580 W2’s filed in a single tax year. Should the earnings make your income appear to be over $80,000 (if you are single) or $160,000 (if you are part of a couple) you could be mistakenly notified that you have to pay substantially higher Medicare Part B premiums.
If you think someone is using your Social Security number for work purposes, contact Social Security. Ask to check your Social Security Statement that lists earnings posted to your Social Security record. If an error is found on the statement, contact Social Security right away.
To learn more, see the publication, Identity Theft And Your Social Security Number (Publication No. 05-10064). Call Social Security toll free at 1-800-772-1213 or visit online at www.ssa.gov.