Social Security and

1
Chapter 11

• Social Security and
• Social Security Benefits

2
Social Security and Social Security Benefits

• Overview of the Social Security System
• Retirement benefit
• Disability benefit
• Family benefit
• Survivors benefits
• Medicare
• Supplemental Security Income (SSI)

3
Social Security Taxes and Contributions

• OASI Trust Fund
• DI Trust Fund
• HI Trust Fund
• SMI Trust Fund

4
Social Security Benefits Eligibility and
Calculations

• Covered workers and insured status
• Social Security beneficiaries
• The Social Security Statement
• Form SSA-7005
• The Retirement Benefit Calculation

5
Taxation of Social Security Benefits

• For persons with substantial income in addition
  to Social Security benefits, up to 85 of their
  annual benefits may be subject to federal income
  tax.
• Modified Adjusted Gross Income on the 1040
  federal tax return, the sum of adjusted gross
  income, nontaxable interest, foreign-earned
  income, and ½ of Social Security benefits.

6
Other Social Security Benefits

• Disability benefits and disability insured
• Family benefits
• Survivors benefits

7
The Maximum Family Benefit

• The Maximum Family Benefit is the limit on the
  amount of monthly Social Security benefits that
  may be paid to a family.

8
Medicare Benefits

• Medicare is a federal health insurance plan for
  people who are 65 and older, whether retired or
  still working
• There are two parts to Medicare
• Hospital Insurance (Part A)
• Medical Insurance (Part B)

9
Other Social Security Issues

• Effect of marriage or divorce on benefits
• Change of name
• Leaving the United States