Three Ways You Could Lose Your Social Security Benefits
More than 70 million Americans receive Social Security benefits, with the vast majority receiving retirement benefits. For many retirees, this is their sole source of retirement income. But Social Security is not something to take for granted. A MoneyWise article points out that you could lose your benefits if you do one of these three things:
- Don’t pay taxes. While the IRS can’t garnish wages if you are no longer earning a paycheck, it can withhold a portion of your monthly Social Security benefits under the Federal Payment Levy Program for failing to pay taxes. The government can garnish up to 15 percent of each monthly benefit check until your tax debt is fully paid.
- Go to prison. Incarceration is a government benefit in that you are receiving food and housing. Because of this, your Social Security benefits will be suspended if you are in prison for 30 days or longer. Your benefits will be reinstated after you are released from jail.
- Earn too much. You can receive Social Security and have a job at the same time. However, if you have not reached full retirement age, a portion of your benefits will be withheld if you exceed the earnings test limit, which is currently $22,320. However, the article points out, “that money isn’t forfeited forever — it’s added back into your monthly benefit once you reach full retirement age.”
The Seniors Trust is committed to improving the financial well-being of America’s retirees through the passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and will ensure the long-term solvency of the Social Security program.
