Social Security is rying to think, again

[gcal]

An unexpected deposit for $3400 showed up in my account. A week later, it is still there. Called the SS office to see what was going on.

My account has been reviewed. In their infinite wisdom, they decided that I was only kidding when I told them to start my payments in June, I really wanted them to start in March, when I actually quit work. So, they calculated the extra payments and reduced benefits, and sent the money.

Well, great. Yes, if I invested this money in a good dividend stock, I would be money ahead over the next 9 years. But that first year, I had to give almost all of my ss back because I had made over a certain amount of money. So if this payment is for 3 months of that year, is the IRS going to want its money back? 
Plus leaving me with reduced benefits?

Good freaking grief. I am going to the SS office tomorrow, giving them a check, and telling them to put the damned paperwork back the way I filed it.

 

[Gunny]

Good Luck. I have been trying to get them to quit deducting for medicare for 13 months since I use the VA and have Tricare also. I have spoken to at least 15 different people at several different divisions and every freaking one tells me it's "Handled".. My ass, it's still coming out.

 

[gcal]

Good Luck. I have been trying to get them to quit deducting for medicare for 13 months since I use the VA and have Tricare also. I have spoken to at least 15 different people at several different divisions and every freaking one tells me it's "Handled".. My ass, it's still coming out.

One day, 10 years from now, you will get a big deposit with no explanation. After you sit on hold for 30 minutes waiting for a representative, they will tell you that it is your medicare refund, but that you owe back taxes and late fees.

 

[ccbreder]

The more I hear the more happy I am that I waited until 67 to get my benefit. I went on working for a couple of years, and each year I worked my monthly benefit increased. I avoided the income tax by increasing my 401k.
I thought every one had to have medicare, even with other insurance.

 

[Gunny]

A person can opt out if they have verifiable proof of other insurance or health benefits. I have a 100% disability rating. I had to mail back my ID card and sign my opt out papers.

 

[ccbreder]

Thanks, Gunny.

 

[wayne49]

The more I hear the more happy I am that I waited until 67 to get my benefit. I went on working for a couple of years, and each year I worked my monthly benefit increased. I avoided the income tax by increasing my 401k.
I thought every one had to have medicare, even with other insurance.

This is not official info, just a brief summary from my experience.

There are parts to Medicare. The three main parts:

Part A - Hospitalization. Mandatory. Kicks in at 65 regardless of other insurance or employment. There is no direct charge to the individual for Part A.

Part  B - Doctor visits, Lab tests, etc. This is only one that is affected by other insurance. Direct charge to the individual. Active employer coverage will get you out of Part B & Part D. My retirement plan only has supplemental coverage, so I ended up in Part B.

Part D - Prescriptions. Optional Direct charge to the individual. I am hoping the Algodones plan will allow me to quit this part.

And yes, SSA/CMS screwed up my retirement change. They had some screwy Anthem insurance (not a plan I ever subscribed to) coverage as my primary (instead of Part B) and for six months my providers were getting the run around as I gave Part B as primary and UHC as supplemental. Medicare would deny the claims as not primary. UHC would deny the claims until Medicare processed the claims.

 

[Mobilesport]

One day, 10 years from now, you will get a big deposit with no explanation. After you sit on hold for 30 minutes waiting for a representative, they will tell you that it is your medicare refund, but that you owe back taxes and late fees.

Are you saying the back taxes and late fees are more than the medicare refund?
Thanks

 

[gcal]

The more I hear the more happy I am that I waited until 67 to get my benefit. I went on working for a couple of years, and each year I worked my monthly benefit increased. I avoided the income tax by increasing my 401k.
I thought every one had to have medicare, even with other insurance.

Now, I am not really into conspiracies and I firmly believe that Uncle Sam's employees lay awake all night trying to do me good.  But this makes me wonder. The sweet little chick on the phone told me that the changes were made to my benefits because I had checked a box that indicated that I wanted my benefits to be paid in the best way. But the way they changed it has me breaking even in 9 years, losing $4000 if I live another 10 years, and over $10,000 if  I live on into my 90's. My family either dies before they hit 60 or lives on into their mid 90's, depending on which gene set they get. I am already nearly 70, so I am not checking out early. I wonder who this adjustment was supposed to be "best" for.

 

[TrainChaser]

Our govt does everything the way they want to do it.  What you want or what you say or what box you really checked is of no interest to them.

I have been collecting SS for 3 years.  When I quit my job, I had overestimated (to SS) how much money I was likely to make.  When the year ended, they put $3200 in my bank account because I made less than expected.  The deal was done, and that was my money.  And so it was.

When you are collecting SS, you can make up to $25,000 w/o being taxed on it by the IRS.  If you usually do your own taxes, next year check with your local library and ask if they have SCORE members (I think) volunteering at the local libraries to do relatively simple taxes for you, for free.  

I did this year, because last year I worked a data-entry job for a small non-profit as an 'independent contractor' (about 40 hrs/mo), and I didn't really know how to deal with the 1099 form on my tax returns.  I got the nasty surprise that my federal taxes were DOUBLED for working for myself, increased from 7% to 14%.  I would not have known that if they hadn't explained it to me.

If anyone wants to take advantage of this free service, contact a local library right after the first of the year, ask if they're doing it, and make an appointment.  They book up fast.  They did mine assembly-line style, and the very last person was the one who knew everything, so ask him/her your questions.

 

[ccbreder]

If i retired at 62, i would have collected a much reduced benefit for the rest of my life. And, I would "payback" $1 ss for every $2 i earned. I waited until my full retirement year, and was not penalized but received my full ss payment. I would have paid more income tax, but avoided that by increasing my 401k deposit. I found that each year i worked while receiving ss, increased my monthly benefit as i paid more ss tax.

 

[TrainChaser]

That's very true. They're hoping you die before you turn 65 or 66 (depending on your age). One of my neighbors did; he dropped dead 4 months before he retired at the approved age.

 

[Gunny]

14 months.. They just deposited the contested amount. Small Yay.

 

[gojo]

Paying taxes on your benefits, a little booklet I received.

About 40% percent of all people receiving Social Security benefits have to pay taxes on their benefits. You'll have to pay taxes on your benefits if you file a federal tax return as an individual, and your total income is more than $25,000. If you file a joint return, you'll have to pay taxes if you and your spouse have a total income that is more than $32,000.  If married and filing separate returns, you probably will pay taxes on your benefits.

 

[sushidog]

So let me see if I understand this. Let's say both my DW and I retire at 66 1/2 yrs old, our full retirement age. Let's just say my benefit is $1,500/mo or $18k/yr and my DW's benefit (as she worked her entire life too) is $1,400/mo or $16.8k/yr. Let's say, for the sake of the illustration, we had no other income, our gross income from social security would be $34,800/yr which would mean we must pay federal income tax on our benefits? If so they are encouraging people to retire as early as possible and avoid employment, even part time, to avoid paying taxes on their benefits.

Or do they mean $25,000 for a single and $32,000 for a couple earned in addition to one's social security benefits? That's not the way it sounds though. If so the tax laws sure need to be changed. Does anyone have any experience with this?

Chip

 

[sushidog]

OK I'll answer my own question as I just researched it. From the IRS:

"A quick way to find out if any of your benefits may be taxable is to add one-half of your Social Security benefits to all your other income, including any tax-exempt interest. Next, compare this total to the base amounts below. If your total is more than the base amount for your filing status, then some of your benefits may be taxable. The three base amounts are:
•$25,000 - for single, head of household, qualifying widow or widower with a dependent child or married individuals filing separately who did not live with their spouse at any time during the year

•$32,000 - for married couples filing jointly

•$0 - for married persons filing separately who lived together at any time during the year"

You must add 1/2 of your social security benefits to your other income, so in my previous illustration of a couple drawing $34,800 in social security benefits, half of this amount is $17,400 - $32,000 = $14,600. So in this illustration the couple could have another $14,600 in additional income through wages, pension, etc. and still not have to pay federal income tax.

https://www.irs.gov/uac/newsroom/are-your-social-security-benefits-taxable

Chip

 

[Vacilador]

Gunny,

How do you (I'm asking for advice) get around TriCare's policy to have Medicare?  They seem pretty insistent that without MediCare, they don't pay, here are some examples: http://www.vmwusa.org/index.php/healthcareservices/hcarticles/47-health/1088-medicare

 

[Gunny]

Gunny,

How do you (I'm asking for advice) get around TriCare's policy to have Medicare?  They seem pretty insistent that without MediCare, they don't pay, here are some examples: http://www.vmwusa.org/index.php/healthcareservices/hcarticles/47-health/1088-medicare

I still have Part A which is free, I opted out of anything else because my prescriptions, Primary Care and all the rest are taken care of by the VA , Plus I have Tricare which in my opinion is worthless.

When I got my notification from Social Security that they were going to start deducting from my monthly payment I called Social Security and used the call back feature and spoke to several people and finally got one who knew what forms I needed to sign to opt out. 

To be honest I don't know if the fact I use the VA exclusively and told them so had anything to do with it. I have tried to use Tricare a couple of times to get a second opinion when My heart issues were at their worst and could not get a referral or appointment with a cardiologist who would accept Tricare, the business managers for two MD's told me they were too slow to pay and too difficult to deal with. 

Social Security also told me I could opt back in during certain periods if I chose to. 

I got my notification in March 2015, a month before I hit 65 and last week got a refund for all the past months. 15 months about to wind it's way thru the bureaucracy that is S.S.

If I can be of any help feel free to PM me. I will give my email ... I still have a copy (somewhere) of the form I had to sign. My Best .. Rob

 

[Gunny]

This means the Veteran lose all TriCare benefits. However, the Veteran is still eligible to seek health care with the VA, but this does not apply to the Veteran’s beneficiaries. If the Veteran has beneficiaries (spouse and/or children), they too lose all TriCare benefit coverage.

The above I copied from the link you posted. Since I have not tried to use TriCare recently nor do I want to, from what I read of your link I am now without Tricare. To me no loss, I have no dependents.

I don't know if my being 100% rated had anything to do with it. I am sorry I don't know more but all these new rules and laws have baffled me since they came out. I wish I could help more.

 

[ArtW]

My Mom had Tricare and later, Tricare for life (retirement age Tricare) for her, with no access to VA hospitals, it worked pretty good, soaking up expenses we otherwise would have had to absorb
That was then, though, it might be different now