Social security (updated for correction on computation of benefits)
Hi Terry my question is I started drawing Social Security in 2005 I waited six months after my birthday. I continued working and paying into Social Security. They used to send me every year after taxes that they didn’t pay me enough in my Social Security they did that for about maybe three or four years. And then they stop and 2010 I started working again and paying into Social Security. But I never got any incentive back for the years I worked I just wanna know is where is my Social Security that I pay every month or every week going. Should I be reimbursed for some of that. Thank you very much
Terry Says
First, I hope you started collecting at your full retirement age — so you weren’t penalized. And by my rough calculations that was age 65 in 2005 — so now you are about 82 and still working! Congratulations!!!
They recalculate your benefits every year based on current earnings. When the Social Security Administration computes your benefits they will use your highest 35 years of earnings and if you don’t have 35 years of earnings they will use $0 for those years to compute your monthly benefit amount. These zeros will significantly impact your Average Indexed Monthly Earnings (AIME) and in turn reduce your monthly benefit.
How does someone earn a quarter of coverage? People often ask if they can just pay the tax and purchase a quarter of coverage. You can only earn a quarter of coverage by working for someone or through self-employment. In 2019, you will earn a quarter of coverage for every $1,360 of wages or net profit you earn. It doesn’t matter how quickly or how long it takes to earn the $1,360. You can only earn a maximum of 4 quarters of coverage in a year.
If you want to see exactly what earnings are used in your calculation, go to this website and open a secure account at SS: https://www.ssa.gov/myaccount/
