Social Security (SS) benefits are a form of monthly payments that provide income for those who are retired, cannot work due to a disability, or for survivors of workers who have died. Formally known as the Old-Age, Survivors, and Disability Insurance program, Social Security is a federal program that is funded through payroll deductions or individually paid taxes.
In general, there are four types of SS benefits: retirement, survivor benefits, and two types of disability benefits (SSDI and SSI).
Qualifications
You must have a Social Security number, which is available for U.S. citizens, permanent residents, or noncitizen workers.
Social Security and Medicare
If you are receiving Social Security benefits of any kind by the time you turn 65, you will automatically be enrolled in Medicare Part A and Part B. If you are not eligible for SS but are otherwise eligible for Medicare because you paid Medicare taxes, you still may have to manually enroll in Medicare Part A and B at age 65 to avoid late enrollment penalties. There are some exceptions to this rule if you or your spouse are still actively employed.
Social Security Benefits and Taxes
If you file taxes as an individual, your Social Security is taxable only if your total income for the year is above $25,000. Half of that income is taxable if your income is in the $25,000–$34,000 range. If your income is higher than that, then up to 85% of your benefits may be taxable. Numbers differ for those who file under different statuses, such as married filing jointly. Those who are still working and receive benefits before their full retirement age will also see a reduction in their SS benefits since there is a limit to how much one can receive while still employed.
How to Check Your Social Security Benefits
Social Security tracks the number of quarters you have paid into the system from the time you are assigned a Social Security number. When you begin paying into Social Security (when you start working and pay taxes) it is strongly recommended to set up an online SS account at ssa.gov. Otherwise, an online annual statement is generated and mailed to you each year to show what your payment would be depending on which age you elect to begin receiving benefits. If you haven’t worked for at least 40 quarters, this section is blank. If you haven’t signed up for an online SS account by the time you’re 60, you will instead receive a SS statement three months before your birthday.
Learn More:
Understanding the Benefits | Social Security Administration
Last Revised June 6th, 2023