What does social security pay for

We often need to obtain additional information from the person before we can award Social Security benefits. Age 62 or older, or disabled or blind; and. For applications filed December 1, , or later, you must either be a U. We measure work in "work credits". You can earn up to four work credits per year based on your annual earnings. We pay monthly benefits to people with limited income and resources who are disabled, blind, or age 65 or older. Blind or disabled children may also get SSI.

Unlike Social Security benefits, SSI benefits are not based on your prior work or a family member's prior work. SSI is financed by general funds of the U. Spousal and Survivor Benefits. Social Security Benefits and Taxes. Key Takeaways Social Security benefits provide partial replacement income for qualified retirees and disabled individuals, as well as for their spouses, children, and survivors. An individual must pay into the Social Security program during their working years and accrue 40 credits in order to qualify for benefits.

The benefit amount someone receives is based on their earnings history, the year they were born, and the age when they start to claim Social Security. Spouses who don't work or haven't amassed the requisite number of credits can receive benefits based on their spouse's work record. Benefits may be taxed depending on one's income and tax filing status. Article Sources. Investopedia requires writers to use primary sources to support their work.

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Social Security Definition Social Security is a federally run insurance program that provides benefits to many American retirees, their survivors, and workers who become disabled. Treasury account that funds Social Security benefits paid to retired workers and their survivors. What Is a Payroll Tax? A payroll tax is a percentage withheld from an employee's salary and paid to a government to fund public programs.

Learn more about payroll taxes here. What Is the Social Security Act? Share using email. Keep in mind Social Security sets a cap on how much of your income it takes into account in figuring your benefit. Updated June 8, When should I file to get the maximum Social Security benefit? Will my Social Security benefit decrease if the Medicare premium increases? Family Caregiving. Leaving AARP.

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