Despite the fact that the amount of your Social Security benefit is easily accessible on the ssa.gov website or from other sources, that amount is not always the one that will be deducted from your bank account.
The Social Security Administration (SSA) frequently processes reductions from your benefit amount that could lower the amount you actually receive. In some cases, decisions you make independently could reduce the amount you receive.
Social Security Payment
Here are some of the more typical methods by which your Social Security payout could be decreased.
Taxes
Social Security is not taxable to many People. In contrast, a portion of your benefits may be withheld if your income exceeds specific thresholds.
- No taxes on combined income up to $25,000
- Between $25,000 and $34,000 in combined income: up to 50%
- Above $34,000 in combined income, up to 85% of benefits may be subject to taxation.
Government-Imposed Levies
Your government benefits are generally shielded from creditors. For instance, the credit card company cannot deduct your benefits if you fall behind on your payments.
Any debt owing to you or forced upon you by the government, however, takes precedence. If you owe past taxes, for example, the government will step in and garnish up to 15% of your income, even though other creditors cannot.
Medicare Premiums
You immediately enroll in Medicare Part A, which covers hospital expenses, when you apply for Social Security. Medicare Part A is free of cost.
You will need to pay a monthly premium if you decide to sign up for Medicare Part B, which includes some preventative treatments, home healthcare, and certain medical services and equipment. This will immediately reduce the amount of your check that you get by being taken from it.
Read more: SNAP payments: How to reimburse stolen benefits?
Benefits Could Be Cut
Also, if you want to depend on the program in 2035, be aware that there’s a possibility you may get fewer benefits than you had anticipated.
The 2022 annual report from the board of trustees states that benefits will need to be cut by 24.9% if no adjustments are made to address the trust fund deficit.
Such a reduction in payments would be quite costly for many older folks. According to the SSA, 50% of senior married couples and 70% of elderly singles receive at least half of their income from Social Security.
Read more: Lawmakers propose new Social Security bill to help American maximize benefits
