Social Security Benefits A Guide For Veterans
If you are a veteran who is disabled, you might be eligible to receive Social Security disability benefits regardless of the nature of your disability.
You can receive Social Security disability benefits at the same time you are receiving Veterans Administration benefits.
While both are government benefit programs, they work very differently. You can have pending applications for both kinds of disability benefits Social Security and VA at the same time. The income you receive from one program does not impact your benefits from the other program, as neither is income-based.
How Does Your Work Qualify You For Social Security
To qualify for benefits, you must have worked and paid Social Security taxes for a certain length of time. You can earn one credit for each $1,410 that you earn up to a maximum of 4 credits each year. In other words, in 2020, you would earn 4 credits as long as your income is over $5640. .
The Social Security Administration says that “the amount needed to get credit for your work goes up each year. The number of credits you need to qualify for Social Security benefits depends on your age and the type of benefit for which you are eligible.
No one needs more than 10 years of work in total .
When To Consider Social Security: A Complete Guide
The earnings of individuals serving in the army on active duty have been covered since 1957 under Social Security. Since 1988, Social Security has also covered duty service, which has been inactive in the armed forces reserves. In this article, we have provided essential info that should be known by military personnel regarding the benefits they will get from Social Security.
Paying Social Security And Medicare Taxes
While you happen to be employed in the military , Social Security taxes must be paid by you just like the civilian employees. Those taxes will be deducted from what you are being paid, and the U.S. government will pay you an equal amount. The tax rate, in the year 1999, happens to be 7.65% up to as much as $72,600. In case you earn in excess of that, you go on paying the taxs Medicare portion on the remainder of what you earn.
When Should You Take Social Security Benefits?
Many individuals take social Security benefits once they are entitled to do that, and for many Americans, it is 62 years of age. However, it does not imply that you should take these benefits immediately since you can receive them.
Delaying while taking these benefits can lead to higher payments. Although you can start getting these benefits when you are 62 years old, it will be advisable to delay the start date for getting
the payments if feasible.
How your work qualifies you for Social Security
Social Security Extra Earnings
When you are eligible for Medicare
Contacting Social Security
You May Like: Athens Ga Social Security Office
Will Your Social Security Benefits Be Taxed
The government has established income thresholds to determine who pays taxes on benefits and those who will not. If half of your Social Security income, investment earnings, pension payments, tax-exempt interest and other wages surpass the threshold, you may find yourself owing taxes on benefits. The thresholds are determined by your filing status and may result in you owing taxes on 50% 85% of your benefits.
Special Veterans Benefits: Who Qualifies
There are 9.4 million military veterans receiving Social Security benefits, which means that almost one out of every four adult Social Security beneficiaries has served in the United States. Two out of every five recipients either are veterans or reside with family members who are veterans. Veteran recipients are overwhelmingly male compared with all adult Social Security beneficiaries who are more evenly split between males and females. Fourteen percent of veterans receiving Social Security benefits have income below 150 percent of poverty, while 25 percent of all adult Social Security beneficiaries are below this level. Military veterans constitute an important subgroup of beneficiaries of the Old-Age, Survivors, and Disability Insurance program. The number of veterans who receive Social Security benefits grew steadily from the late 1960s through the mid-1990s but has since leveled off.
Don’t Miss: Do I Pay Taxes On Social Security After Age 66
How Military Service Affects Social Security Benefits
If you served in the military between 1940 and 2001, then you should be eligible for additional earnings credits, which should be factored into your lifetime earnings that are used to calculate your Social Security Benefits.
How much this will impact your Social Security Benefits will depend on when and how long you served in the military. We will break these down by service era, and follow up with additional tips on how you can increase your Social Security Income.
We Are With Those Who Need A Helping Hand
The Supplemental Security Income program is a program that provides income support to people with disabilities, people age 65 or older, or blind, who have low income and resources. U.S. Treasury general funds, not the Social Security trust funds, pay for SSI.
If you or someone you know may be eligible for SSI, visit to learn more and apply.
Don’t Miss: Who Benefits From Social Security
Benefits For Children With Disabilities
A child under age 18 may have a disability, but we donât need to consider the childâs disability when deciding if he or she qualifies for benefits as a dependent. The childâs benefits normally stop at age 18 unless they are a full-time student in an elementary or high school or have a qualifying disability.
Children who were receiving benefits as a minor child on a parents Social Security record may be eligible to continue receiving benefits on that parents record upon reaching age 18 if they have a qualifying disability.
Is There A Difference Between A Veteran And A Combat Veteran
How Do Combat Veteran Benefits Differ For Non-Combat Veterans? The most significant difference for combat veteran benefits over non-combat veterans is a priority group. Veterans with combat service records rank higher in priority. This means they qualify for more medical coverage and enhanced eligibility enrollment.
Recommended Reading: Does Pennsylvania Tax Social Security
Service From 1978 Through 2001
For every $300 in active duty basic pay, you are credited with an additional $100 in earnings up to a maximum of $1,200 a year. If you enlisted after Sep. 7, 1980, and didn’t complete at least 24 months of active duty or your full tour, you may not be able to receive the additional earnings. Check with Social Security for details.
Social Security Normal Age Of Retirement
Until 2002, the normal retirement age for everyone was at the age of 65. According to the Social Security Administration, the normal retirement age is the age a which beneficiaries receive full Social Security Benefits. The list below shows the normal retirement age based on the year you were born.
- 1937 or earlier 65 years of age
- 1938 65 and 2 months
- 1939 65 and 4 months
- 1940 65 and 6 months
- 1941 65 and 8 months
- 1942- 65 and 10 months
- 1943-1954 66 years of age
- 1955 66 and 2 months
- 1956 66 and 4 months
- 1957 66 and 6 months
- 1958 66 and 8 months
- 1959 66 and 10 months
- 1960 or later 67 years of age
Recommended Reading: Social Security Office Coconut Creek
How Much Is The Vietnam Veterans Pension
Calculate Your 2022 Maximum Annual Pension Rate
|Veteran with no dependents||Maximum Annual Pension Rate|
|If you dont qualify for Housebound or Aid and Attendance benefits||$14,753|
|If you qualify for Housebound benefits||$18,029|
|If you qualify for Aid and Attendance benefits||$24,610|
Ssi/ssdi And Va Disability Benefits
Veterans may be eligible for Supplemental Security Income or Social Security Disability Insurance , in conjunction with, or as an alternative to VA disability payments. They may also use the Medicaid and Medicare health benefits that come with SSI/SSDI to supplement VA health services.
The definition of disability and application process is different for SSA and VA disability benefits, and Veterans may begin receiving SSA benefits while they are waiting on a VA benefit decision.
Read Also: Social Security Office Corpus Christi Tx
Watch For Five Changes In 2023
More than 70 million people depend on one of Social Securitys benefit programs, so annual changes to the program and its payouts are always highly anticipated.
But substantially higher benefit checks have been a rarity in recent years.
With inflation soaring in 2022, the extra money will help seniors and others make ends meet.
Service From 1940 Through 1956
If you were in the military during this period, including attendance at a service academy, you did not pay Social Security taxes. However, your Social Security record may be credited with $160 a month in earnings for military service from Sep. 16, 1940, through Dec. 31, 1956, under the following circumstances:
- You were honorably discharged after 90 or more days of service, or you were released because of a disability or injury received in the line of duty or
- You are still on active duty or
- You are applying for survivors benefits and the veteran died while on active duty.
Contacting Social Security
- “TTY” 800-325-0778.
Read Also: 1800 Number For Social Security
What Special Social Security Benefits Do Veterans Receive
Its a little-known fact, but earnings for active duty military service or active duty training are covered under Social Security and have been since 1957. One of the special benefits military members receive is that it is possible to receive both Social Security benefits and military retirement benefits.
According to the Social Security Administration, there is generally no reduction of Social Security benefits because one receives military retirement benefits, as well. This means you can receive two benefit checks at the same time each month. You will receive your Social Security benefit based on your earnings and the age you begin to start receiving benefits just like everyone else.
The SSA states that under certain circumstances, special earnings can be credited to your military pay record for Social Security purposes. Those extra earnings are for periods of active duty or active duty for training. These extra earnings may help you qualify for Social Security or actually increase the amount of your Social Security benefit.
In addition to retirement benefits, the SSA will also pay survivors benefits to veteran families when they pass away. Veterans can also get benefits for themselves and their families if they develop a disability. If you developed a disability while on active military service after October 1, 2001, you can visit Wounded Warriors to find out how to expedite the processing of your disability claim.
Other Income That Could Reduce Your Ssdi Payment
Any disability benefits you receive from a private long-term disability insurance policy wonât affect your SSDI benefits. Nor will SSI or VA benefits impact your SSDI amount. But government-regulated disability benefits, such as workersâ comp or temporary state disability benefits, can affect your SSDI benefits. Hereâs how that works: If the amount in SSDI plus the amount from government-regulated disability benefits is more than 80% of the amount you earned before you became disabled, the SSDI or other benefits will be reduced.
Before Inez became disabled, her average earnings were $5,000 per month. Inez, her spouse, and her two children would be eligible to receive a total of $3,000 a month in Social Security disability benefits. But Inez also receives $2,000 a month from workersâ compensation.
The total amount of benefits Inez and her family would receive$5,000is more than 80% of her average earnings. So, her familyâs Social Security benefits will be reduced by $1,000, from $3,000 to $2,000. That way, the $2,000 a month from workersâ comp and the $2,000 in disability benefits means they will receive a total of $4,000 per month, which is 80% of the earnings figure of $5,000.
The following types of government benefits could lower your SSDI payment:
- workersâ comp payments
- civil service disability benefits, and
- state or local government retirement benefits based on disability.
You May Like: When Did They Start Taxing Social Security
When Should You Take Social Security Benefits
Many people take Social Security benefits as soon as they are eligible to begin receiving them, which for many Americans is age 62. But just because you can begin receiving Social Security benefits doesnt mean you should take them right away.
For example, you can increase your Social Security payments by delaying when you receive them. Here are a few things to think about concerning when to begin receiving Social Security Benefits.
Delaying when you take Social Security Benefits can result in higher payments. In general, you can begin receiving Social Security Benefits at age 62, but in many cases, its worth delaying your start date for receiving Social Security payments if possible.
This is because the Social Security Administration uses a sliding scale based on the year of your birth to determine your normal retirement age and the amount of money you will receive. Taking Social Security Benefits at age 62 may cause you to only be eligible to receive a partial payment.
No Limits On Unearned Income And Assets
A person collecting SSDI can have any amount of assets and any amount of income from investments, interest, or a spouseâs income. These are all types of âunearned income.â You can have an unlimited amount of unearned income. Unearned income includes:
- interest income
- unemployment benefits, and
- cash or gifts from friends and relatives.
Any type of gifts, even expensive ones, doesnât affect SSDI benefits at all. You donât have to report them to the SSA as income.
Also Check: Social Security Phone Number Pa
How To Increase Your Social Security Benefits
The Social Security System offers a great benefit for taxpayers who paid into the system over the years. Unfortunately, it can be a little confusing if you havent had time to do a little research into available Social Security Benefits. This should not discourage recipients from learning as much as possible about the benefits which they are entitled to receive. Failure to understand the system could cost you money at a time when you can least afford the loss.
Here we look at tips to increase social security benefits and make it easier in retirement years.
Covered Earnings: Your Past Income
Your past earnings must be covered under the Social Security program to count towards the SSDI benefits youâll receive. âCovered earningsâ are wages youâve received from jobs that paid into Social Security.
If youâve received a paycheck that had money withheld for âSocial Security taxesâ or âFICA,â the wages you made at that job are covered earnings and will count toward calculating your benefit amount. Most wages and salaries are covered earnings.
If youâve worked for yourself and paid self-employment taxes to the IRS for business income or freelance income, those taxes count just like FICA taxes.
You May Like: 10 Year Social Security Employment History
We Wouldnt Miss Your Retirement Party
When most people think of Social Security, they think of retirement benefits with good reason. But we are more than retirement benefits we offer many online tools to help you plan for your future.
to verify your earnings and see an estimate of future benefits throughout your career and into retirement.
With a mySocial Security account, you can estimate your future benefits at different ages when you may want to start receiving benefits.
The Social Security Administration Announces That You May Not Receive An Ssi Payment If This Requirement Is Met
The United States benefit payment schedule is now published. Thanks to this calendar, all Social Security beneficiaries know when they will receive their benefits. In this way, they can plan their financial situation to avoid problems in the long and short term. The benefit you get depends on your maximum wage during your time as an American worker.
Not only that, but years worked, retirement age and other factors also play a role. To get the $3,345 benefit, you must have applied for Social Security at Full Retirement Age, that is, at age 67. This is the only way to reach this monthly cash figure. More time worked means a better retirement benefit.
In addition to that, you can also look for extra money from other . You can work while receiving ZUS. However, you have to be careful about the number of hours you work if you dont want to pay taxes. You can also sell things you dont need anymore, move into a smaller house, and even sell your car.
Most importantly, youre in a stable situation where you dont have anything you dont need. If you are struggling to make a living solely on Social Security, you simply have to look for possible solutions through an external source of income. It is a good idea to speak to an attorney or advisor to avoid any tax problems related to the extra income.
Recommended Reading: Social Security Offices In San Antonio
Cbos Adjusted Sample Compared With Data Linked To Administrative Records 2013
Source: Congressional Budget Office, using data from the ACS and from C. Adam Bee and Joshua W. Mitchell, Do Older Americans Have More Income Than We Think? Working Paper SEHSD-WP2017-39 , Appendix Table 7, .
To create its sample, CBO imputed retirement-plan income to some ACS respondents. The ACS asks respondents to report income from defined benefit and defined contribution plans from companies, unions, federal, state, and local governments individual retirement accounts Keogh plans and any other type of pension, retirement account, or annuity.
For the Census sample, Bee and Mitchell linked ACS data with IRS Form 1099-Rs, which record gross distributions that were made from employer-sponsored plans and individual retirement accounts and that were permanently withdrawn from tax-preferred retirement plans. Bee and Mitchell excluded certain kinds of distributions that the authors did not consider income, primarily direct rollovers and conversions, which move money from one tax-preferred retirement plan to another.
ACS = American Community Survey IRS = Internal Revenue Service.