More answers to your Social Security questions
Question: I’m expecting my first child this summer, and wondered how I should get a Social Security number for the baby?
Answer: The easiest way to apply for a Social Security number for a newborn is to do so while you are still in the hospital. Staff there should ask if you want to do so when the child’s birth certificate is being completed.
If you don’t apply then, you can apply after leaving the hospital by visiting your local Social Security office. You will need to provide proof of the child’s age, identity and citizenship, such as the birth certificate and hospital record.
For more information, visit www.socialsecurity.gov/ssnumber/.
Question: My company’s pension plan benefits are based on my last five years of earnings. Are my Social Security benefits figured the same way?
Answer: No. Retirement benefit calculations are based on your average earnings during a lifetime of work under the Social Security system. For most current and future retirees, we will average your 35 highest years of earnings. Years in which you have low earnings or no earnings may be counted to bring the total years of earnings up to 35.
Question: I stopped work at the end of last year, when I was 52. I don’t expect to work again, and will probably file for Social Security retirement benefits when I turn 62. Will I still get the same benefit amount that is shown on the Social Security Statement that I recently received?
Answer: Probably not. When Social Security calculated your 35 highest years of earnings to estimate your future benefits on your Statement, there was an assumption you would continue to work until age 62, making the same earnings you made last year.
If, instead, you have zero earnings each year over the next 10 years, your average earnings will probably be less and so will your benefit. You can use the Social Security benefit calculators at www.socialsecurity.gov to see how this will affect your monthly benefit amount.
Question: The Internal Revenue Service has sent me a letter saying money for overdue taxes may be taken from my Social Security payments. Does Social Security allow that?
Answer: If you owe overdue taxes to the IRS, money can be taken from your Social Security payments, reducing your payments by as much as 15 percent a month. However, before this would happen, you would get a letter from Social Security explaining how and why your benefits are being reduced.
Question: My insurance agent told me I should consider buying disability insurance. But I remember hearing I already have some disability insurance protection through Social Security. Would a private policy offset any of the Social Security disability benefit I would be eligible for?
Answer: No. Neither your eligibility for, nor the amount of your Social Security disability payments, is affected by any private insurance you may buy. But worker’s compensation and some public disability payments may affect your Social Security benefit. To learn more, visit www.socialsecurity.gov, or call 1-800-772-1213 (TTY 1-800-325-0778).
Question: I’m disabled and get Supplemental Security Income (SSI). I did some part-time work last year and reported it to Social Security at that time. I’ve just completed my tax returns and will be getting a refund this year. Does my tax refund count as income?
Answer: No, tax refunds do not count as income for SSI purposes. That’s because Social Security counts your gross wages each month that you work, and the taxes withheld from your wages were already counted as income. However, if the money you get from IRS isn’t spent in the month you get it, it will be counted as a resource in the following month. If your total resources are worth more than $2,000 (or $3,000 for a couple) you cannot get SSI. Report how much you get and the date you receive it to Social Security.
For more information, visit www.socialsecurity.gov or call 1-800-772-1213 (TTY 1-800-325-0778).