5 Unexpected Ways You Could Lose Your Social Security Benefits

For millions of Americans, Social Security is a lifesaver that ensures financial stability in retirement. Nonetheless, there are a few less well-known situations that can result in a loss of benefits.

It is essential that you comprehend these circumstances in order to guarantee your eligibility and prevent any financial surprises.

In order to provide you the tools to take proactive measures to safeguard your retirement income, this article will examine five unexpected ways that you could lose your Social Security payments.

After receiving disability benefits, you go back to work

Disability benefits may be terminated by the Social Security Administration if the beneficiary goes back to work and makes enough money to be considered engaging in “substantial gainful activity.”

That amount of monthly income for 2024 is typically $1,550, but it is $2,590 for blind people.

Payments stop in the month that the evidence indicates if officials find that the recipient’s employment has rendered them ineligible for disability benefits. The month the benefit is ended and the next two months are when the recipient is entitled to a payout.

On the other hand, you might be eligible to resume receiving disability benefits if your income drops. Furthermore, claimants might be able to take part in a trial work period without losing their benefits right away.

You’re behind bars

If you are found guilty of a felony and given a sentence that includes more than 30 days in jail or prison, your Social Security benefits will be terminated. Benefits, however, will be in effect for as long as a spouse or children are eligible.

Resuming benefits is possible the month after your release.

While you are incarcerated, your SSI benefits will also be suspended. The month you are freed can be the start of this payment. On the other hand, your SSI benefits will stop if you are detained for 12 months or more, and you will have to reapply after you are released.

Your condition gets better and you obtain disability compensation

In addition, disability benefits may be stopped if the underlying medical condition gets better.

In the event that officials determine that a person’s medical condition improves and they are no longer eligible for disability payments, the decision takes effect in the month that the evidence indicates or the month that the recipient receives written notice, whichever comes first.

The beneficiary is entitled to a reimbursement in the month when the benefit is terminated as well as the two months that follow if payments are halted.

However, if the recipient’s health improves and they participate in a vocational rehabilitation program or something similar, your disability benefits might still be paid.

Remarriage

You may file a claim for benefits on your ex-spouse’s record if you are single, at least sixty-two years old, and divorced from a person who qualifies for Social Security or disability payments and with whom you were married for a minimum of ten years. But if you get married again, you’ll forfeit those perks as an ex-spouse.

Benefits from your former spouse won’t necessarily end permanently. You may once more get benefits on your ex-spouse’s record in the event that your second marriage terminates due to a divorce, death, or annulment.

Remarrying won’t impact your Social Security benefits, of course, if you’re qualified to get them on your own account. Nevertheless, Social Security will only cover the greater of benefits you have claimed on your own account or those to which you are entitled on an ex-spouse’s account—not both.

You put in work while you’re early retired

Only a fraction of your entire retirement benefit—up to 70%, depending on when you file—will be paid to you if you apply for Social Security benefits early.

Additionally, Social Security has policies in place to discourage early filing followed by a return to employment. Overpaying yourself at work can lower or even eliminate your Social Security payout.

If an early filer makes too much money, Social Security penalizes them as follows:

For every $2 you make above $22,320 annually, $1 of your Social Security check is withheld if you are under full retirement age for the entirety of 2024.
For every $3 you earn over $59,520 until the month you achieve retirement age, $1 of your monthly payout is withheld if you reach full retirement age in 2024.

Your Social Security payout could be totally eliminated if your income is too high. In addition, you will keep paying Medicare and Social Security taxes on your income.

To Conclude

For millions of Americans, Social Security is a lifeline, but it’s important to know the several scenarios that could result in benefit loss. You can take proactive measures to safeguard your retirement income and guarantee a stable financial future by being aware of these variables.

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