What Are Social Security Benefits?

The first question a lot of people have is: What exactly are Social Security benefits? Most people have heard of them or know someone who receives them but aren't really sure what they are. Basically, these are federal benefits that are given to help provide a partial replacement of income for certain people, including those of old age, those who have had a spouse or qualifying ex-spouse die or someone who has a certain disability. The exact amount of benefits will vary from person to person, and there are some specific guidelines that need to be met in order to actually receive the benefits every month.

Types of Social Security Benefits

The next thing most people wonder is what types of benefits there are. Since this is a federal program, every state will have these available.

The first type is called Social Security Retirement Benefits. These are for those 62 years and older. You can apply three months before you turn 62, and you'll start receiving them on your 62nd birthday. Keep in mind that if you want them to start after this age, you can wait to apply.

There's also Social Security Disability Insurance, or SSDI. These are rewarded to those that have a qualifying disability. The disability needs to be expected to last 12 months or longer. The person must also have enough work credits to qualify for the benefit. The exact amount will vary based on age, but for each quarter a person works and actually pays into Social Security, they will get one work credit.

The next type is called Supplemental Security Income or SSI. If you don't happen to have enough work credits to qualify for SSDI, you could try this program. It's a need-based program, and your income and assets need to be below a certain point. The maximum benefit a person can get is $783 per month, and the maximum amount for a couple is $1,175 per month.

Another type of Social Security is called Disabled Widows and Widower's Benefits. In order to qualify, a person needs to be at least 50 years old and have become disabled a certain amount of time after their spouse passes away. While there isn't any type of income or asset limits, the spouse that died must have earned enough work credits while they were alive. The exact amount received will depend on how much the deceased spouse made while they were working.

Disabled Adult Child Benefits are for children who became disabled before they turned 22 and haven't earned enough income credits. To qualify, their parents must have earned enough credits, and the amount they get will depend on how much their parents were able to earn.

One final type is for Children of Disabled Workers. This happens when a tax-paying worker becomes disabled and starts receiving benefits. The minor children of these people might be able to get a check as well, but the amount will depend on how much the disabled parent made.

When Can I Apply for Social Security Benefits?

When you can apply varies greatly on what kind of benefits you're applying for, but they all have requirements. For example, the benefits for those that are getting ready to retire won't start until they are 62. For SSDI, you have to have a certain amount of work credits earned, and while SSI doesn't have a specific age limit, you want to make sure you have plenty of documentation proving your qualifying disability.

For those trying to receive widow benefits, the applicant has to be at least 50 and have become disabled following a certain amount of time after their spouse's passing. Disabled adult children have to be 22, and their parents need to have earned enough work credits, whereas children of disabled workers can start receiving as soon as their parent starts getting benefits.

How Do I Apply for Social Security Benefits?

It's important to know how to apply for benefits for Social Security. Understanding the process will not only help you fill out everything correctly, but it will also help you be prepared for any outcome that might come up.

In order to actually apply, you can go to the local Social Security administration, go online or call. You want to make sure you have all the required documents and be able to show or send them in when asked. Once you complete the application process, the administration will use this information with a formula to come up with your monthly benefit. They will then send you paperwork saying you're approved and letting you know the monthly amount as well as when it will come. Keep in mind that if you aren't approved, you can apply again.

What I Need to Apply for Social Security Benefits?

While it depends on the type of benefits you're applying for, they'll all have certain required documents that will need to be sent with your application. If you don't send these in, it could cause delays or possibly even result in your application being denied. Listed below are the various documents you might need:

• Proof of citizenship
• Original birth certificate
• Copy of your W-2 or previous year's tax return
• Documentation if you served in the military before 1968
• Social Security number of you, your children and your deceased spouse(for survivor's benefits)
• Marriage or divorce certificate(for survivor's benefits)
• Death certificate of your spouse(for survivor's benefits)
• Deceased record of earnings or W-2(for survivor's benefits)
• Medical documentation proving qualifying disability

How Do I Find My Estimated Social Security Benefits?

While the actual determination will come from the administration, there are some things you can do to try and get a rough estimate. Keep in mind that this number might be different than what you’ll actually receive, so it's a good idea to only use this as a general guide. The administration could determine you'll receive more or less than what you calculated. Another thing to keep in mind is that the disability benefit types have a cap, so these calculations will help with retirement benefits.

First, you'll want to see if you qualify for retirement benefits. If you do, you'll then want to adjust all your annual earnings to account for inflation. Once you do that, look at your earnings and find the top 35 years of highest inflation. Next, calculate your average indexed monthly earnings or AIME. The next step is to figure out your primary insurance amount, or PIA. Finally, adjust your claiming age and plug everything into the calculation. Since these calculations can be complicated, it's a good idea to talk with a professional or let the administration do it.

How Do You Qualify for Spousal Benefits From Social Security?

Both current and ex-spouses can qualify for benefits from Social Security. If you're an ex-spouse, you need to have been married for 10 years and neither one of you can be remarried. You must be at least age 62 to file, but waiting until 67 is recommended. For current spouses to receive benefits, they have to wait until their spouse actually files and starts receiving, while an ex-spouse can file at any time as long as the ex is at least 62 years old.

Can Foreign Spouses Receive U.S. Social Security?

In most cases, a foreign spouse can get benefits from Social Security. There are some requirements in order for it to happen, such as the foreign spouse must be full retirement age and have lived in the country for at least five years. If they are a resident or citizen of certain countries, they don't have any additional requirements. They can usually also get survivor’s benefits as long as they meet the requirements.

What Type of Income Affects Social Security Benefits?

There are certain types of income that affect benefits from Social Security. For the most part, the two types of income that will affect benefits are earned income from a traditional job and earned income from self-employment.

How Does Workers’ Compensation Affect Social Security Retirement Benefits?

Depending on how much workers’ compensation you earn, there's a possibility that your monthly amount will be affected. The exact terms are up to the administration, but the workers’ compensation and the benefits from Social Security can't exceed 80% of what you would've made while you were working.

Who Is Entitled to Social Security Benefits of a Deceased Person?

When a Social Security recipient dies, certain people can receive remaining benefits. These people need to be considered as qualifying individuals, but they should be able to receive the benefits. A qualifying individual is usually a current or former spouse and a child. Keep in mind that you can't just automatically get the benefits; you'll have to meet certain requirements to be eligible.

Will the Sale of Property Affect My Social Security Benefits?

The good news is that any sale of a property won't reduce your benefits. Keep in mind, though, that your benefits could be taxed as a result of the capital gains from the sale.

Will an Inheritance Affect My Social Security Benefits?

Similarly to the sale of a property, an inheritance shouldn't affect your Social Security benefits because it's not considered an earned income.

Now that you have some more information on these benefits and the process of applying, you should have a better understanding of things. If you're still confused and feel like you need some help, you could always talk with a professional who has experience in this area. They should be able to answer any questions you have and possibly help you through the application process. Keep in mind that you may have to apply more than once before the Social Security board approves you.

We have an experienced team of professionals that can assist you through every part of the disability process, from applying for benefits, to conducting a hearing before an Administrative Law Judge, to appeals in the Federal Courts. Improve your likelihood of getting your application accepted with our help!