You are not eligible to receive Social Security benefits until you reach the age of 62; however, the government keeps a record of the earnings on which you have paid Social Security taxes throughout your entire working career in order to calculate the amount of benefits that will be payable to you in the future. Even though it does a good job of this most of the time, occasionally it will make a mistake.
If the government records your income for a given year incorrectly, it may permanently reduce the amount of Social Security benefit you receive for that year. To our great good fortune, there is a way to avoid doing this. You only need a computer, your Social Security number, and five minutes of your time to complete the process.
How is it possible for the government to get my income wrong?
Each year, the Internal Revenue Service sends the Social Security Administration information regarding the amount of money that was paid in taxes for Social Security (SSA). The Social Security Administration (SSA) enters this number into your earnings record, which documents your earnings history over the years.
The Social Security Administration (SSA) will determine how much of a Social Security benefit you are entitled to based on the 35 years of your earnings history that produced the most money, after taking into account the impact of inflation on those numbers. In a nutshell, the larger the amount of money that you have subjected to Social Security taxes over the course of your working life, the greater the size of your benefit checks will be when you retire.
There are occasions when the information provided by the SSA is inaccurate, despite the fact that most of the time it is quite precise. For instance, if you write your Social Security number on your employment paperwork in a way that is not correct, the government may incorrectly apply this income to the earnings record of another person instead of yours. If you legally change your name but fail to notify your employer of the change, this can also lead to confusion because the government might assume that the different names refer to different people.
You are in luck because you can check your earnings record online for free to make sure that the information that is listed there is accurate. If you do this on a yearly basis, you can have the peace of mind that the amount of your future Social Security benefit will be determined using information that is accurate.
How can I look at my past earnings record?
By creating a my Social Security account, you will have access to your earnings history and will be able to view it. To be eligible to make one, you need to be at least 18 years old, in possession of a valid Social Security number, as well as a U.S. mailing address and an email address.
You will be required to provide your complete name as well as your Social Security number when you initially sign up. You will also be required to provide answers to some identity verification questions, such as which street you’ve lived on in the past or which company you have your mortgage through. This guarantees that no one other than yourself will be able to access any of your private information. After you have completed these steps, you will be able to create a username and password for your account, which you will need in the future to log in.
After entering the account, navigate to the earnings record to examine the income that was recorded there. Check that it is consistent with the records you kept for the year regarding your taxes.
One thing that high earners should be aware of is that the amount you’ve earned in a year may not always match up with the amount of Social Security taxes you’ve paid on. For instance, in 2022, you will only be required to pay taxes on the first $147,000 of your income. Your earnings record is going to show $147,000 for 2022 if you earn more than this, and that number is not a mistake.
In previous years, the amount of income that could be earned before becoming subject to Social Security taxes was lower. Before concluding that something is a mistake because it does not make sense, you should always make it a point to check what the limit was for that particular year first. However, this should not be a problem that the majority of workers experience.
The most important thing to look out for is a lack of recorded income for a year in which you are aware that you worked. Because a mistake like this can have a significant impact on the amount of future Social Security benefits you receive, it is critical that you make the necessary adjustments as soon as possible.
What steps should I take if I discover an error?
If you find that your earnings record contains an error, you must fill out a Request for Correction of Earnings Record form and send it to the Social Security Administration (SSA), along with any documentation you have that demonstrates your actual income for the year. If you have copies of your tax returns or W-2s, that would be a great asset to have. In point of fact, it is typically a good idea to keep all of your tax documentation for the year in question until you have confirmed that your earnings record is accurate.
You also have the option of speaking with a representative from your local Social Security office by scheduling a meeting with them. If you choose to proceed with this option, remember to bring all of your documents with you.
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If you do not have any documentation showing your actual income, a representative from the Social Security Administration (SSA) may still be able to obtain the information by contacting your employer and asking for their records. It may take a little bit of time to figure everything out, but the effort that you put in will undoubtedly be well worth it in the long run.
The Social Security bonus of $18,984, which the vast majority of retirees completely ignore.
If you’re like the majority of other Americans, your savings for retirement are several years (or even more) behind where they should be. On the other hand, knowing a few “Social Security secrets” that aren’t widely publicized can help increase the amount of money you receive when you retire. One simple strategy, for instance, could result in an increase in your annual income of up to $18,984! We believe that once you acquire the knowledge necessary to maximize the benefits you receive from Social Security, you will be able to retire with the same level of self-assurance and tranquility that we all seek. You need only click this link to find out how you can learn more about these strategies.
