(FinancialHealth.net) – Every year, millions of U.S. residents will apply for Social Security benefits. While the process may seem easy, there are some traps that anyone who’s filling out their application should watch out for.
Here are issues you should keep in mind if you plan to file:
- Consider how taxes are going to impact your benefits. For example, say you’re married, have other income coming in and file jointly. If the combination is between $32,000 to $44,000, your pay might be taxed as much as 50%.
- Ensure you’re covered by Social Security. Ideally, you will know this well in advance. People who may not get the benefits are some local, state and federal employees. Also, people who have not worked long enough to get the required credits and people who haven’t paid Social Security taxes.
- Working may impact your benefits. Be sure you know the earnings limitations. If married, the limitations only impact the person claiming, not their spouse.
For other tips and tricks, Retirement Hustle has some advice:
Educating yourself as much as you can before you file for benefits is the best way to protect your financial future. When you apply, you can always call and speak to a Social Security Administration customer service representative. They’ll give you any additional information you may need.
~Here’s to Your Financial Health!
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