Understanding Social Security Benefits

Understanding Social Security Benefits

Social Security is the main source of income for most of the elderly. The federal program also provides financial assistance for workers with long-term disabilities. Did you know that nearly 180 million employees paid Social Security tax in 2019? Paid taxes are used to fund benefits other families are receiving. You should know about the eligibility requirements for social security benefits.

Retirement Benefits

Taxpayers earn credits when they file. Most people need 40 credits to qualify, which can be earned from 10 years of work. Your lifetime earnings determine the amount you receive in Social Security benefits Wyckoff NJ, which means the more you earn, the more you will receive. You earn one credit for each $1,410 you earn and you can earn up to four credits per year.

The full retirement age is dependent on the recipient’s year of birth. If you were born before 1938, your full retirement age is 65. Individuals born after 1960 must be 67 to qualify for full benefits. You can claim benefits at 62, but your monthly income will be reduced by nearly 30%.

Disability Benefits

To qualify for disability benefits, you must have worked for an employer that provided Social Security benefits. Your disability must be included under the Listing of Impairments and detrimental enough to prevent productive activity. The Social Security Administration can process your claim once you provide them with medical evaluation paperwork and treatment plans from your physician, laboratory results, a list of prescriptions, and your employment records. Once you recover from your disability, you will no longer receive benefits.

Social Security is one of the most important social programs in the United States. As a form of federal insurance, beneficiaries receive monthly income after retirement and can collect temporary income from a long-term disability that prevents them from working. The federal agency provides income to individuals who are not in the workforce. However, you must meet the criteria to qualify for benefits.

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