105 votes
Accepted

Scam? Phone call from "Department of Social Security" asking me to call back

It is not a plot to rack up toll fees but to get you to pay them money to get the alleged legal proceeding halted. I too have received numerous such phone calls (most with faked Caller IDs with Area ...
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35 votes

Why Is Social Security Excluded From Retirement Savings Formulas?

There is no guarantee how much you will actually receive from Social Security. The amount you pay in does not go into an account set aside for you personally.
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  • 623
33 votes
Accepted

what happens if you don't start collecting social security until you're 75?

You'd need to talk with an attorney familiar with Social Security, or an appropriately qualified SSA representative to be sure - but all signs point to the idea that unfortunately Social Security does ...
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  • 11.6k
32 votes
Accepted

Social security letter urges to apply now

No, they’re not trying to “trick you”. Government bureaucracies don’t do that kind of thing. You won’t get more money if you defer your first payment until after you’re seventy, so they’re making sure ...
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  • 22.2k
29 votes
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How is Social Security tax levied for people with incomes above the cutoff?

Every company you work for will withhold from each paycheck 6.2% of your wages that are applicable to social security. Some items reduce your gross pay before social security tax is calculated. When ...
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29 votes

Can I buy Social Security credits?

You cannot buy your way into Social Security benefits. The only way to earn credits is by working in the U.S. and earning pay where Social Security tax is withheld. If you only need one credit, this ...
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29 votes
Accepted

How does the last few years of wages affect Social Security amount in the US?

Your social security benefit is calculated based on the 35 highest payed years of your career. So if you have fewer than 35 years of work history, those non-worked years count for 0, and won't ...
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  • 5,280
29 votes

Should I delay taking social security

Social Security is designed to be actuarily neutral. Actuarily speaking the increase in monthly benefits you get from waiting to start your benefit is expected to equal the amount you'd gain from ...
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  • 20.4k
26 votes

Scam? Phone call from "Department of Social Security" asking me to call back

The Social Security Administration mails documents; they don't call.
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  • 49k
24 votes

Motley fool says you can make $15,978 more per year with Social Security. Is this for real?

The purpose of this spammy Motley Fool video ad is to sell their paid newsletter products. Although the beginning of the video promises to tell you this secret trick for obtaining additional Social ...
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22 votes
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If I earn 40 credits and stop working, would I get full Social Security benefits at age 67?

Assuming that you qualify for Social Security and it is still around when you are age 67, the biggest problem you will have is that for decades you will have 0 in your annual earnings. This ...
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22 votes

Scam? Phone call from "Department of Social Security" asking me to call back

I work as a contractor at the Social Security Administration(ssa.gov), and am working on documenting an app we have (eMailer) that allows employees to send you email or texts with pre-approved content ...
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21 votes
Accepted

Is the Social Security retirement benefit calculation based on the last 40 quarters, or overall?

The Social Security payments for retirement are based on 35 years of indexed earnings. If you have less than 35 years of earnings, then your record will have zeros. If you have more than 35 years, the ...
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21 votes
Accepted

How much should a hobby business make to be worth the effort for taxes?

So long as you don't hate what you are doing, I'd say the price is somewhere in the neighborhood of $100-200 year of income to be worth the bookkeeping. I'd only say more than that if you have a ...
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  • 11.6k
21 votes
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Tax and social security for low income

'Some people' should stick to what they know. At $85K, a single filer has a standard deduction of $12,200, so, say $73K taxable, and tax due, nearly $12K. VS the married, joint filer, total $92K ...
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20 votes

Opting my child out of SS taxes?

The good news is that he probably won't be required to pay SS taxes. The bad news is that the reason will be because he can't get a job without a SSN. You don't get to just opt out of the social ...
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  • 51.6k
19 votes
Accepted

What happens to my Social Security benefits if I work less than 10 years in the U.S?

No. Switzerland is one of the few countries the United States has "totalizaton" agreements with (not to confuse with tax treaties) to work around this kind of thing. You can find the list of the ...
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  • 399
19 votes

Do I need to pay medicare/social security as full-time employee but with a business on the side of which I'm the sole owner/employee?

(Your situation is not unique: lots of people have part-time "sole proprietorship" side jobs.) Any revenue from your mobile app business is... income. Therefore you have to pay tax on it. Even if ...
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  • 49k
18 votes

Opting my child out of SS taxes?

Not getting SSN has nothing to do with his/her liability to pay SS taxes. It just makes the life more complicated and you forgo your own tax benefits that you must have child's SSN to get. To request ...
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  • 131k
18 votes

Scam? Phone call from "Department of Social Security" asking me to call back

Of course you're being conned. Notifications of legal proceedings never come by phone. Never. All such calls are guaranteed to be scams. As for that call coming from the 210 area code, that's very ...
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17 votes
Accepted

What is the purpose of Social Security and Medicare deductions from my paycheck?

These two items (social security and taxes) should have also been withheld from any other positions you held previously. Both these items cover you in the future. Social security when you reach ...
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17 votes

Why might Social Security employee deductions from paycheck vary across pay periods?

Social Security tax only applies to the first $118,500 you earn in a year. See the Social Security Administration's website for more info. You should see a 6.2% increase in after tax earnings now. If ...
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  • 1,230
17 votes

Why Is Social Security Excluded From Retirement Savings Formulas?

Social security has a maximum payout of not greater than $3600 per month ($43,200 per year). That figure requires planning and to be a high earner. The average is approximately $1500 per month ($18,...
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  • 7,845
14 votes
Accepted

can you collect social security if you're over 70 and are employed?

He will be able to collect the full amount. From the Social Security website, emphasis added: If you were born January 2, 1943, through January 1, 1955, , then your full retirement age for ...
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  • 1,230
13 votes

What is the purpose of Social Security and Medicare deductions from my paycheck?

From Socialsecurity.gov on Medicare: Medicare is our country’s health insurance program for people age 65 or older. Certain people younger than age 65 can qualify for Medicare, too, including ...
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  • 10.1k
13 votes
Accepted

I guess I'm American (by birth). I'm Canadian... my investment company is asking an impossible question. I don't have an SSN, what to do? Lie?

In case it helps other "accidental Americans" (this is a common term, in this topic's context, for Canadians or others who are also US citizens by virtue of birth right) who find themselves asking a ...
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  • 446
13 votes

Can I buy Social Security credits?

You cannot buy credits, but work outside the US can count. Norway is one of the countries that work qualifies: https://www.ssa.gov/planners/retire/international.html
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  • 1,147
13 votes

Tax and social security for low income

Your friend will absolutely need to claim that $7,000 of income as income, but it's fine for her to do this on the joint return with her husband. They'll need to file Schedule C and Schedule SE along ...
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  • 687
12 votes
Accepted

What happens If I Overpay Social Security Taxes?

Yes you will get back the extra money at tax time. You are not able to adjust the withholding. Each employer will pay their share, and not get a refund, but at tax time, you'll get back any excess ...
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12 votes
Accepted

Is social security paid biweekly or monthly?

Social Security is paid on a monthly basis. From the program's website: SSI (Supplemental Security Income) Benefits SSI benefits are paid of the 1st of the month. Unless the 1st falls on the weekend ...
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  • 10.2k

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