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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12686
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I received a letter from Social Security Administration

Customer Question

I received a letter from Social Security Administration asking if I show making $26,675.00 last year (2016), which I did not. I am using my deceased husband's benefit and it is approximately around $1760. a month and I only used from March till December 2016. I am retired and live on his social security and I also have a pension. When I am over 65 I will switch over to my social security which is going to be around $2500 a month is that what they are talking about.?
JA: What confuses you?
Customer: I did not make $26,675.00 from Social Security last year so where did they get the above figure I only make around $15,840. I am retired so they also want me to mark up every month I worked which I retired last year in March, are they strictly asking pension from former employee ?
JA: Because employment law varies from place to place, can you tell me what state this is in?
Customer: California
JA: Has anything been filed or reported?
Customer: I went to the SSA when I filed to get my husband's benefits they know I am only receiving his benfits plus tax time I received the 1099 Form, which I filed along with my pension.
JA: Anything else you want the lawyer to know before I connect you?
Customer: No just want to make sure when I send the letter back they know I only made $17,560.00 in Social Security Benefits. I did not work from April till December 2016.
Submitted: 2 months ago.
Category: Tax
Expert:  Lane replied 2 months ago.

Hi. My name's Lane.

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I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice on three continents since 1986.

Bear with me a moment and I’ll provide my initial response, and then we can go from there if you have further questions on this.

Expert:  Lane replied 2 months ago.

No, all they're looking for there is your EARNED income, NOT the pension, NOT the Social Security ONLY your part time work.

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What they're looking at is whether you earned more than the annual limit (EARNED more, which means w-2 wages or self-employment income). If you EARNED over the annual limit they will reduce your Social Security benefit by $1 for every two dollars you earned over the limit.

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For 2016 that was $15,720/yr. ... ($1,310/mo.)

Expert:  Lane replied 2 months ago.

By the way, once you turn age 66 (Full retirement age for those born between 1943 and 1954), there is no longer a reduction AND if you DID earn over the limit and some of your benefit may be reduced, your benefit will be refigured after full retirement age to put that reduction back into your benefit.

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Please let me know if you have ANY questions at all, before rating me.

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

I hope that you’ll rate me based on my accuracy and thoroughness, rather than any good news/bad news content.

That’s the only way JustAnswer.com will compensate me for the work here.

Thanks,

Lane

Customer: replied 2 months ago.
I only earned $17,560.00 in benefits according to my form 1099. I says also that mark off months that I did not earn more than $1,310.00 a month. I retired in March and I put retired from March to December.
Do I leave Jan and Feb blank because I earned more than $1,310.00 for Jan and Feb in 2016.
Expert:  Lane replied 2 months ago.

That's right.

Expert:  Lane replied 2 months ago.

I want to make sure that I'm being clear here. What I think they're asking about is ONLY the EARNED income, the part time work.

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I'm going to make an offer for a phone consult (I'll do so for the smallest amount allowed, $5) so that we can talk this through.

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I'd also like to give you my email, so that I can be sure your dealing with the right income request form (if you simply post here your personal information can be read by other users here)