Three Things That Could Lower Your Social Security Check

There’s been a lot of talk lately about Social Security benefit checks going up next year because of inflation. We will know for sure in October when the annual Social Security cost-of-living adjustment (COLA) is announced. But did you know that there are also several factors that can reduce the amount of money you receive each month? Yahoo! Finance discovered your monthly Social Security check could be lower than you expected due to:

1. Medicare premiums — While there is no cost for Medicare Part A coverage, the premium to purchase Medicare Part B is taken from your Social Security check. Depending upon your income, it could be quite a sizeable amount. That’s something to consider if you are thinking about going back to work.
2. Creditor debts — Your Social Security check could be reduced if you owe money to the IRS for back taxes. Defaulted student loans or unpaid alimony could also result in reductions. However, the first $750 of your Social Security check is protected by law and cannot be garnished.   
3. Work wages — If you collect Social Security but are still working – and have not yet hit full retirement age (FRA) – Social Security will deduct $1 from your benefit check for every $2 you earn above the specified limit. Once you reach FRA, the deductions stop. Like with Medicare premiums, this is something important to take this into consideration if you are thinking about going back to work.

Retirees would not need to think about going back to work if Congress would enact the Social Security Expansion Act. It would provide retirees with a $200 monthly benefits boost, along with establishing a fairer cost-of-living adjustment and shoring up the long-term solvency of Social Security. The Seniors Trust is a strong supporter of this bill.