Social Security FAQs

Social Security is a complex topic. While you may understand the basics (like when to file and what family benefits you’re entitled to), you might still wonder how to claim benefits, manage taxes associated with Social Security and more. At Adviser Investments, we field Social Security questions from clients daily. Here are some of those most frequently asked questions along with our answers.

1. How do I file for Social Security? You can apply online, via phone at (800) 772-1213 or at the nearest Social Security office. If you prefer an in-person meeting, make an appointment beforehand to save time and frustration.
2. Do I have to pay taxes on my Social Security benefits? Generally, yes—but at a reduced rate. If your total income is between $25,000 and $34,000 (or $32,000 to $44,000 for a married couple filing jointly), then up to 50% of the benefits you receive from Social Security are taxable. If your total income falls below those levels, you do not pay taxes on your Social Security income. And if you are fortunate enough to surpass those thresholds, then 85% of your benefits are taxable. Note that this applies only to federal taxes—although 12 states apply their own taxes to Social Security benefits.
3. Does work overseas count toward my Social Security? In many cases, yes. More than two dozen countries (including the U.K., Australia and Japan) have agreements with the U.S. allowing you to accrue Social Security credits for your time working abroad. Additionally, these agreements prevent you from facing a potentially nasty double-taxation situation.
4. What are Supplemental Security Income (SSI) benefits and do I qualify for them? SSI is a separate program administered by the Social Security Administration that aids adults with disabilities and children with little to no income or assets. To qualify, you must be disabled, blind or at least 65 with limited (as determined by several different means tests) income and resources. If you or a loved one may be eligible for SSI, we often recommend setting up a special needs trustAn estate-planning tool that allows beneficiaries with a disability or additional needs to retain assets while still receiving government benefits like Medicare or Supplemental Security Income, even if the inherited amount puts them over those programs' income limits. to set funds aside. These trustsA legal document that functions as an instruction manual to how you want your money managed and spent in your later years as well as how your assets should be distributed after your death. Assets placed in a trust are generally safe from creditors and can be sold by the trustee in short order, avoiding the lengthy and costly probate process. are exempt from certain means tests and can allow the beneficiary to still receive federal aid like SSI.
5. What will my benefits be? The amount you’ll receive depends on your date of birth, earnings history and the age at which you apply for benefits. Start with this benefits calculator for a quick estimate. One thing we do know is that current Social Security and SSI beneficiaries will receive a 5.9% cost-of-living increase for 2022.

Social Security is a significant source of income for many Americans, and the rules governing it are confusing. We’re proud to say that we have some terrific expertise on the subject and are happy to share it. If you have questions about your specific situation, please contact your wealth management team to receive a personalized breakdown.

About Adviser Investments

Adviser is a full-service wealth management firm, offering investment management, financial and tax planning, managed individual bond portfolios, and 401(k) advisory services. We’ve been helping individuals, trusts, institutions and foundations since 1994. Adviser Investments and its subsidiaries have over 5,000 clients across the country and over $8 billion in assets under management. Our portfolios encompass actively managed funds, ETFsA type of security which allows investors to indirectly invest in an underlying basket of financial instruments (these may include stocks, bonds, commodities or other types of instruments). Shares in an ETF are publicly traded on an exchange, and the price of an ETF’s shares will fluctuate throughout the trading day (traditional mutual funds trade only once a day). For example, one popular ETF tracks the companies in the S&P 500, so buying a share of the ETF gets an investor exposure to all 500 companies in the index., socially responsible investments and tactical asset allocation strategies, and we’re experts on Fidelity and Vanguard mutual funds. We take pride in being The Adviser You Can Talk To. To see a full list of our awards and recognitions, click here, and for more information, please visit www.adviserinvestments.com or call 800-492-6868.