Ways You Can Lose Your Social Security Benefits

Through Social Security Disability Insurance (SSDI), Social Security serves mostly older retirees.

Supplemental Security Income (SSI) provides extra assistance to disabled or blind individuals with limited resources.

In 2021, the Social Security Administration (SSA) paid $1 trillion to 65 million monthly beneficiaries.

The things you do or don't do can affect your share of the pie if you collect benefits or plan to in the near future. 

Find out how your Social Security benefits can be lost in the following paragraphs.

You'll receive 99.4% of your full retirement payment if you claim at 66 and 11 months,

By claiming early, you forfeit up to 30% of your benefits

But the full retirement age is 67. You will receive just 86.7% of your benefits if you claim at 65. 

You can apply as young as 62, but if you don't withdraw your claim within a year, you'll only receive 70% of your full payment for life.

If you claim early and earn too much money, you'll get less Upon reaching full retirement age, there is no income test for receiving full benefits. 

Continuing to earn income while claiming Social Security will result in your Social Security check shrinking. 

As of 2022, you can earn up to $19,560 without seeing your benefits reduced. After that, the SSA will withhold $1 from 

Your earnings for every $2 over the threshold. Later this year, you will be able to earn up to $51,960

if you reach full retirement age. Every $3 earned after that is withheld by the Social Security Administration.

You Can Lose Some of Your Benefits to Taxes

As a single filer or joint filer, you can expect the IRS to take up to 85% of your Social Security benefits. 

As income, Social Security benefits are also taxed in twelve states.

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