Question: After I signed up for direct deposit for my social Security check do I have to stay with the same bank?

 

Answer: No.  You can use direct deposit at any federally-insured bank, savings and loan on credit union.  If you move your account call Social Security’s toll free number, 1-800-772-1213 and a representative will change your direct deposit information.  Or you can go to your new financial institution and have then call for you because Social Security will need your new account number and the institution number to make the change.  Make sure the check is going to the new account before you close the old account.

 

Question:  In 2008 how old does a person have to be to receive full retirement benefits for Social Security?

 

Answer: In 2008 the age to receive full retirement Social Security monthly benefits is 66.  The month you reach full retirement age you can work, earn any amount and receive your full retirement benefit.  The earnings on and after the month you reach full retirement age will not reduce your Social Security benefit.

 

Question:  I received my first Social Security check in 2007.  Now I have heard that I may have to pay income tax on my Social Security Check.  Is this true?

 

Answer:  Yes.  Couples where the combined income is between $32,000 and $44,000 and individuals with incomes between $25,000 and $34,000 may have to pay federal income tax on up to 50% of their benefits.  Couples where the combined income exceeds $44,000 and individuals whose income is more than $34,000 may have to pay taxes on up to 85% of their benefits.  For those where the income is below these levels, Social Security benefits are not taxed.  To figure if taxes are owed, income is defined as adjusted gross income as reported on form 1040, plus one half of the total Social Security benefits received for the year, plus nontaxable interest.  The taxes are due along with other taxes that have to be paid when filing their federal tax return.  For information about this tax do not contact the Social Security office.  Call Internal Revenue Services at 1-800-829-3676.

 

Question: Are the men and women who are now in the military service paying Social Security taxes on their salaries?

 

Answer:  Yes. Military Service performed beginning January 1, 1957 is covered by Social Security basic pay for active duty or active duty for training is wages.  Inactive duty for training including week-end drills is wages and has Social Security deducted as of January 1, 1988.  Under certain circumstances members of the Uniformed Service may be given non-contributory wage credits.  Gratuitous military wage “credits” are granted for military service performed before 1957.  A veteran who was on active duty in the military or naval forces pf the U.S. in September 15 1940- and before January 1, 1957 may be eligible for wage credits of $ 160 for each month of active duty.  These credits from September 15, 1940 to January 1, 1957 will not be on the wage statement you receive each year from Social Security.  You will need to contact the Social Security office with your Discharge Certificate of DD-214 to discuss with these wage credits.

Question: I recently heard that if I didn’t take my Social Security benefit at full retirement, I can receive a percentage increase in my monthly benefit up to age 70.  Is that true?

 

Answer: Yes.  If you choose to delay receiving retirement benefit beyond your full retirement age, you have two options.

1. You can work and full retirement benefit no matter how much you earn.

2.  You can decide not to collect your retirement benefit until age 70 and then get a higher benefit.

The “Delayed Retirement Credit” increases your Social Security benefit by a certain percentage depending on the year you reach full retirement.  No credits are granted after age 70.  For more information about how the Delayed Retirement Credits may affect your retirement planning call Social Security for help in estimating the amount of increase in your benefit.

 

Question:  I have received my “Medicare and You 2008” hand book.  Who do I call to get my copy?

 

Answer: Call Social Security at 1-800-772-1213.  Have your Medicare card by the phone when you call.  Also, have the Representative check your mailing address.  If you have moved and did not notify Social Security of your new address that is probably the reason you did not receive your copy.