Social Security is a federal government program that provides financial assistance during retirement, disability, or widowhood. To obtain these benefits, you need to have a Social Security number and have paid taxes during the years you worked.
If you wish to obtain social security benefits when you retire, you must be 67 to receive full benefits and have accumulated 40 credits. For each year that you worked, you will receive four credits. In other words, that person must have worked for ten years, at least. You can receive benefits at age 62. However, the financial assistance you receive will not be complete.
“You can earn up to four credits per year. For example, in 2019, you get a credit for every $1,360 salary or self-employment income. When you have earned $5,440, you will have obtained the four annual credits, “explains the Social Security website.
On the other hand, it does not matter if you move out of the United States. You still have the right to receive the benefits. If you want more information, read this article: Can residents receive Social Security benefits outside the United States?
If you suffer from a physical, mental, or emotional illness that does not allow you to work for more than one year, you can apply for disability benefits.
“Normally, we give monthly cash benefits to those who cannot work for more than a year because of a disability. In general, the benefits continue until the person can return to work, “explains the Social Security office.
Benefits For Widowhood or Survivors
If a family member receives Social Security benefits and dies, they must report to Social Security immediately. In this way, the agency can make a report and decide if the immediate family (children or couple) can receive Social Security benefits. You must apply to the United States Social Security Administration (SSA) to receive survivor benefits. On the other hand, if you die, Social Security explains: “The benefits can be paid to your children and your spouse, if they oversee your children, even if you do not have the necessary number of credits. Your family can receive benefits if you have credits for a year and a half of work (6 credits) within three years just before your death. “
Taxes and Social Security Advantages
If spouses have joint income greater than 32,000 dollars or the income of an individual taxpayer is more than 25,000, they will have to pay off taxes on social security advantages. It relies on how much income you earn, but you can’t pay taxes more outstanding than 85% of social security advantages as it will regardless of income. Mostly, disabled people don’t have to pay taxes as a social security benefit. If survivors got such benefits, you would not consider the amount as your taxable income.
You can also receive the benefits if your former partner dies and you were married for ten years; you may receive Social Security benefits.
The spouse or surviving child can receive a lump sum payment of $225 if they meet specific requirements, such as living with the worker at the time of death.
If, for some reason, you cannot receive Social Security benefits, you should consider saving money to be financially stable during retirement. Some savings or retirement accounts that you can consider are:
Synchrony Bank offers a savings account with an interest of 2.25%. You do not need a minimum balance to earn interest to open the bill, and you do not have monthly charges. Also, when opening this account, you can obtain a debit card.
Barclays allows you to open a savings account with an interest of 2.20%. The budget does not require a minimum deposit to open it and has no maintenance charges. In the same way, you can make bank transfers without any cost from Barclays to another bank or vice versa.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.