If you live in the United States and you are collecting a Social Security benefit, you should know that the government could take it away from you. It is necessary to know this information to avoid making mistakes. The benefits are not only for retirement, for that reason many people do not know that they could lose their monthly payments. If you collect a benefit for disability, blindness or some other reason, your benefit could be in jeopardy if you do anything. The Social Security Administration takes these issues very seriously.
Therefore, avoid losing all or part of your benefit, which is also very important. Whether it is because of taxes or some other reason, it is possible to lose part of our Social Security. No one wants that, so it’s best to have all the information available. Avoid making these mistakes if you don’t want to lose your SSA benefit.
Ways to lose your Social Security benefit
There are two basic ways to lose your Social Security benefit and it all depends on what your benefit type is:
- If you are collecting any type of benefit, you can lose it if you go to jail. If you are incarcerated for more than 30 days, you will lose your benefit completely. If you are incarcerated for less than 30 days, you may not lose it. It all depends on the individual case. It is best not to play with fire in this regard.
- If you are collecting Social Security disability benefits (SSDI), you may lose it if you get better. On the health side this is good news for a person, but on the financial side it can be bad. Still, remember that you may have to pay a fine if you have been collecting Social Security illegaly for a long time. It doesn’t matter if the Social Security was due to you or a deceased family member. All illegal collections can land you in jail.
Your benefit can be reduced
We’re not just talking about losing your entire Social Security benefit. It is also possible to lose part of your benefit:
- Taxes: remember that in some cities you can avoid state taxes. Federal taxes are always mandatory. This way, if you live in a state where there are no state taxes for Social Security, you can have a little more money each month.
- Applying for Social Security benefits too early: Applying to the SSA for a retirement benefit at age 62 means you will collect about 30% less. This percentage refers to 100% of the Full Retirement Age (FRA) at age 67. Each year you work longer you will receive a little more money. If you work until age 70, in 2022 you could collect a benefit of up to $4,194 per month.