Government Checks and Payments

Government Checks and Payments

Social Security Government Checks and Payments – Some things are not so clear regarding the beneficiary/government relationship.

There are a few untied knots here and there.

The topic of this article is all that you need to know  about social security but maybe don’t know yet.

If you are receiving benefits from Social Security, or more specifically, retirement benefits from Social Security, there is something you need to know.

There is a maximum amount you can receive monthly, even if you retire at full retirement age.

Maximum you can receive from Social Security

If you are receiving benefits from Social Security, or more specifically, retirement benefits from Social Security, there is something you need to know.

There is a maximum amount you can receive monthly, even if you retire at full retirement age.

The amount depends on the year you retire, the amount of years you have already worked and in at which age you retire.

If you retire in 2018, after working 35 years and at your full retirement age, you will receive $2,788 at most.

If you retire before your full retirement age, you can receive extra benefits for your deferred retirement.

Your benefits can increase by up to 32%.

How to receive the maximum benefit from Social Security

Earning the maximum Social Security is very hard, and requires you to do the right things for an extended period of time.

First, you need to have worked for 35 years under Social Security taxes.

This is due to the fact that program decides your benefits averaging your 35 highest paid years.

Also, your annual salaries would have to be at the top of the maximum taxable earnings in every one of your 35 years of work.

In 2018, the maximum taxable amount was 128,400 dollars, the rest of any salary higher than that is not taxed.

Also, if you were born after 1954, your deferred retirement won’t get to 32%, no matter what you do.

Only 3% of retirees waited until they were older than their full retirement age to retire, and even fewer of those received received maximum benefits.

Tips to increase your payments

Know your full retirement age, chances are, that if you don’t know it, you also don’t know that retiring before your full retirement age reduces benefits.

Anyone born after 1945 can start to receive their retirement benefits at least 2 months after turning 45.

Pay attention to the information associated with your Social Security Number, maybe there are mistakes on your earning record.

Keeping track of your earnings record is very simple. You can do it easily by using of a “my Social Security” account.

In case you don’t know how to create an account, visit this pdf for a  step by step guide offered by the Social Security Administration.

Receiving government benefits as an immigrant

It is hard for immigrants to be eligible for benefits in the U.S. To do so, they need to earn 40 credits, and therefore, to work for 10 years.

However, in case an immigrant works legally in the United States for a year and a half after arriving, they can earn at least $1,260 per quarter.

Therefore, they may also qualify to receive prorated U.S. Social Security benefits based on a totalization agreement with their home country.

A totalization agreement is a contract between to countries that have similar Social Security services; it exists to avoid a clash between the services.

However, not all countries have totalization agreements with the U.S, here is a list of countries that do have an agreement with the U.S:

  • Australia;
  • Austria;
  • Belgium;
  • Canada;
  • Chile;
  • Czech Republic;
  • Denmark;
  • Finland;
  • France;
  • Germany;
  • Greece;
  • Hungary;
  • Ireland;
  • Italy;
  • Japan;
  • Luxembourg;
  • Netherlands;
  • Norway;
  • Poland;
  • Portugal;
  • Slovak Republic;
  • South Korea;
  • Spain;
  • Sweden;
  • Switzerland;
  • United Kingdom.

Some workers who have worked both in their original country and in the U.S may not have worked enough in either country to receive benefits.

Nevertheless, thanks to the totalization agreements, both countries can add up the years of work and pay the benefits to the worker.

Who pays for Social Security

Most workers pay for Social Security. 6.2% of workers’ earnings goes to Social Security. As employers pay a matching amount, the combined contribution is 12.4%.

If you are self-employed you will pay for both the employee and employer, amounting to 12.4 percent of your earnings.

Medicare services take another small percentage of workers’ earnings, 1.45 percent of the earnings to be exact.

Self-employed workers will have to pay 2.9% of their salary.

Don’t fall for the secret bank account trick

There have been some scammers that are tricking Social Security beneficiaries, inviting them to open “secret accounts” or “Social Security trust accounts”.

There is no such a thing, of course. The scammers will ask for your Social Security number in exchange for a supposed bank account number.

Their real objective is to get your personal information in order to commit frauds, such as identity theft.

How to receive your benefits

You must receive your Social Security benefits electronically, either deposited directly to your account or by the Direct express card program.

Electronic payments are more reliable and safer than checks. If you lose your card and report promptly your money will be protected.

It is also more convenient; you do not need to deposit or cash money, and with a card you can buy products almost anywhere. Also, your salary is deposited monthly to your account.

The direct deposit is fast, secure and easy. If you wish for the Social Security Administration to send your benefits directly to your account, you need:

  • Your Social Security number;
  • The financial institution’s routing;
  • The transit number;
  • The account type;
  • The account number.

A Direct Express card is a prepaid debit card, if you use one you won’t need a bank account.

In the Direct Express card program your monthly payments will be available directly in your card’s account.

The card can be used to pay bills and make purchases. Besides, it is possible to get cash at many locations.

The Direct Express card is more convenient and safer than a check, and you don’t even need a bank account to use it.

So, if you liked the article or interesting, please click LIKE and SHARE with your friends. This way, you will be helping more people and making the world a better place.

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