|
||||||||
Readers' Mail: Did Eliminating Social Security Earnings Restrictions Eliminate My Debt? I don't know how many of your members have had to work past 65 and into their 70's, but I was one of them. Since my Social Security benefits were very low (I am a Notch baby), I had to continue to work. During one year I made more than the $7,000 allowed and I now still pay $25 per month until 2007 to repay the benefits that should have been withheld. When I called Social Security about this they told me that was the way it is. Now that the earnings restrictions law has been abolished does the repayment of this type of debt still continue?-P.G. Walnut Creek, CA New legislation allows Social Security recipients over the age of 65 to earn as much as they want to without a reduction in their Social Security benefits. The law became effective January 1, 2000. Because your repayment schedule is based on excess earnings for a year prior to January 1, 2000, you will still be responsible for the scheduled repayment, because you received more benefits during that year than you were entitled to according to law. However, you are entitled to a recalculation of your benefit. If your benefits were withheld because your earnings were more than allowed, Social Security will recalculate your benefits to take into account those months in which you received no benefits or reduced benefits. Your benefit will also be recalculated to take into account any income you make after starting Social Security benefits. If the income increases your overall average earnings, your benefit may increase. Recalculations should be done automatically, but you may want to check with your local Social Security office to find out if the recalculation was done in your case.-Editor Editor's note: The Social Security Earnings Restriction rules continue to apply to Social Security recipients under age 65. If you earn more than $10,080 in 2000 Social Security will deduct $1 for every $2 in excess earnings. Although Social Security gets information from employer reports and your W2, the responsibility for reporting earnings rests with you. Failure to report may lead to you receiving more benefits than you are entitled to. You can be penalized by a deduction from your benefits, a fine, and even imprisonment. This article first appeared in Volume 5, Issue 10 of "The Social Security and Medicare Advisor" newsletter (October/2000). To receive future editions of "The Advisor" in its special, free e-mail version, please click here. | ||||||||
|
|
||||||||
