Your annual earnings Set the amount you will receive social Security In retirement. But incorrect or omitted earnings can miss you with thousands of dollars in retirement benefits. Making mistakes on individual employees and taking action to rectify them.
Here’s how to find and fix Social Security errors:
- Check your social security statement.
- Wait for your statement to be updated.
- Prepare for common problems.
- Collect proof of your earnings.
- Contact the Social Security Administration.
What is Social Security Income Record?
Your social security income record lists all income under your name and social security number that has been reported to the Social Security Administration. This earnings record will eventually be used to calculate your Social Security payments. You can break your social security income report from year to year on your annual social security statement. Periodically reviewing your Social Security income information is important because missing earnings can result in lower Social Security payments.
Check your social security statement
Social Security Administration no longer produces paper Social security statement Anyone under the age of 60. But activists 18 years of age or older can check their details online. My social security account. Your social security statement will list your earnings, which were charged by Social Security for each year of your career. You can check these income against your tax return or W-2 form to ensure that they were recorded correctly.
“I advise people to check their Social Security statements every year as part of their annual financial checkup,” says Dana Enspach, a certified financial planner and CEO of Sensible Money in Scottsdale, Arizona.
Wait for your statement to be updated
Your social security statement may take one or two years to earn. “It takes a while to make your way through the system,” says Mike Piper, a Certified Public Accountant and author of “Social Security Made,” so don’t have to worry because your earnings aren’t visible yet from last year is.” Simple. “If there is an incorrect earning for this year or the previous year, your record has not yet been updated and the problem may resolve itself.
Prepare for common problems
The Social Security Administration states that most wages are automatically credited to workers without incident, but errors are not unheard of. Social Security income is sometimes misreported by employers. Wrong name or wrong Social Security Number The system can be entered by the employer or employee. Problems can also arise if you change your name on marriage or divorce and do not inform the Social Security Administration.
Collect proof of your income
Make sure you do the paperwork that determines your salary. Acceptable earning documents may include the W-2 form, yours tax return Or a payment stub. If you do not have a written document of your work history, write the name of your employer, the dates you worked and how much you have earned.
Contact the Social Security Administration
Once you have collected the appropriate documents, call the Social Security Administration at 1-800-772-1213. “If you detect an error in listed income, the first thing to do is to collect documents that show proof of the correct amount,” Unspec says. “Then schedule an appointment with your local social security office.” SSA can contact your employers to verify earnings information.
High earners cannot cover all of their income
There is a cap on earnings used by Social Security to calculate earnings and payments. Those who earn more than the taxable maximum, which is $ 142,800 in 2021, will not pay Social Security tax on that additional income or that amount will be divided among their Social Security payments. The maximum taxable amount of earnings changes each year and has increased over time. For example, the maximum taxable in 2000 was $ 76,200.
What if my employer has not reported my earnings to Social Security?
Your Social security payment Your career is calculated based on 35 years in which you earn the most. If an employer does not properly report one year of earnings to the Social Security Administration, your future payments may be reduced by approximately $ 100 per month, according to a statement from the Social Security Administration. In a lifetime, a year without salary can cost you thousands of dollars in retirement benefits or payments to family members.