Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 1.3 percent in 2021, the Social Security Administration announced today.

The 1.3 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2021.  Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2020.  (Note: some people receive both Social Security and SSI benefits).  The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

Some other adjustments that take effect in January of each year are based on the increase in average wages.  Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $142,800 from $137,700.  

Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount.  Most people who receive Social Security payments will be able to view their COLA notice online through their personal my Social Security account.  People may create or access their my Social Security account online at www.socialsecurity.gov/myaccount.     

Information about Medicare changes for 2021, when announced, will be available at www.medicare.gov.  For Social Security beneficiaries receiving Medicare, Social Security will not be able to compute their new benefit amount until after the Medicare premium amounts for 2021 are announced.  Final 2021 benefit amounts will be communicated to beneficiaries in December through the mailed COLA notice and my Social Security’s Message Center.

The Social Security Act provides for how the COLA is calculated.  To read more, please visit www.socialsecurity.gov/cola.

By: Vonda VanTil, Social Security Public Affairs Specialist

One of the greatest gifts you can give a grandchild is the gift of financial literacy. Helping them save money early in life and showing them how to make wise spending decisions goes a long way toward a bright financial future. As they get older, they may want to save for special purchases or their college education. You can encourage them when they get their first job to begin saving for the future, including their retirement.

Planning for the Future with my Social Security

When you celebrate their graduation from high school, you can also remind them to set up a my Social Security account. They need to be age 18 or older, have a U. S. mailing address and a valid email address, and have a Social Security number. Even though their retirement is many years away, you can explain the importance of reviewing their earnings record each year since Social Security uses the record of earnings to compute their future benefits. As they start their first major job and begin saving, they’ll be able to monitor the growth of the estimates of benefits available to them. You can access my Social Security at www.socialsecurity.gov/myaccount.

Share How Social Security Works

You can share your knowledge about Social Security with your young savers by explaining how the program works and how it has worked for you. About 96 percent of all Americans are covered by Social Security. Nearly all working people pay Social Security taxes and about 61 million receive monthly Social Security benefits. Encourage them to watch our Social Security 101 video at www.socialsecurity.gov/multimedia/webinars/social_security_101.html.

Share Your Retirement Stories

Social Security replaces about 40 percent of an average worker’s income, but financial planners suggest that most retirees need about 70 percent to live comfortably in retirement. Americans need more than Social Security to achieve that comfortable retirement. They need private pensions, savings, and investments. That means starting to save early and monitoring your Social Security record for accuracy. The best place anyone of any age can visit for quick, easy information about Social Security is www.socialsecurity.gov.

Vonda VanTil is the Public Affairs Specialist for West Michigan.  You can write her c/o Social Security Administration, 3045 Knapp NE, Grand Rapids MI 49525 or via email at vonda.vantil@ssa.gov 

(BPT) – Life changes often mean tax changes. Whether it’s getting married, buying or selling a home, moving abroad or having a baby, misunderstanding the tax and financial implications of these life changes can lead to taxpayers making mistakes or leaving money on the table.

Depending on your situation, there are new tax implications that will impact your benefits, tax bill and how you file. If you experienced a life change in 2016, here is a list of tax implications and how they will affect you.

Marriage

Many couples close the book on their “wedding to-dos” once the last thank you card has been sent, but looking at your new tax situation is an important first step in your married life. There are some instances when getting married can have negative implications for a couple’s tax situation. Once you’re married you must file either as married filing jointly or married filing separately. In some cases, a couple where one spouse earns most of the household income will benefit because their overall tax bracket may decrease. However, a couple with two high earners may find they face a higher tax rate than if each paid tax only on their own income and added the taxes paid.

However, there are some ways to protect against potential negative tax implications. After your marriage is official, update your W-4 with your employer to account for your new marital status. If you’re self-employed or a small business owner, make sure to adjust your quarterly estimated tax payments.

Buying a house

Purchasing a home may open the door to more deductions through itemizing if you weren’t already doing so. Once you become a homeowner, you can deduct many of your home-related costs, including your qualified home mortgage interest, points paid on a loan secured by your home, real estate taxes and private mortgage insurance premiums paid on or before Dec. 31, 2016. If you choose not to itemize, you may benefit from other tax advantages such as penalty-free IRA withdrawals if you are a first-time homebuyer under the age of 59 and a half, or residential energy credits for purchases of certain energy efficient property.

New homebuyers should be on the lookout for Form 1098 Mortgage Interest Statement, which is used to report mortgage interest. This form can help you identify these deductions when completing your Form 1040.

Moving abroad

Are you excited to move abroad, but have no idea what will happen to your taxes and how to file? Many Americans living and working overseas will not owe tax to the IRS because of the foreign earned income exclusion and foreign tax credit. However, even if you qualify for those benefits, you have to file a U.S. tax return each year if you received income over the normal filing threshold.

It is also important to understand your Social Security coverage before moving abroad. Knowing whether your earnings overseas will be subjected to Social Security taxes in the U.S. or the country you are residing in will be an important factor when analyzing the economics of your move.

Having a baby

A new baby means you may be able to take advantage of tax breaks, including the Child Tax Credit (CTC). The CTC is worth up to $1,000 for each qualifying child younger than 17, a portion of which may be refundable as the Additional Child Tax Credit (ACTC) depending on your income. A tax preparer can help you understand the qualifications to determine whether a child is considered qualified for purposes of the CTC. Some of those qualifications include but are not limited to their relationship and residency.

You may also qualify for the Earned Income Tax Credit (EITC) which is a benefit for working people with low to moderate income that reduces the amount of taxes you owe. However, it’s important to note that due to the new “Protecting Americans from Tax Hikes ACT” or PATH Act, this year the IRS is required to hold any refund from those claiming the EITC and ACTC until at least Feb. 15. This delay will be widely felt by tax filers who typically file as soon as the IRS accepts e-filed returns and who normally expect to receive their refund by late January.

To learn more about this new tax law change, how it may delay tax refunds in January and February, and H&R Block’s free solution to this delay, visit www.hrblock.com/refundadvance or make an appointment with a tax professional.

By: Vonda VanTil, Social Security Public Affairs Specialist

Saving for the future is a vital part of ensuring a secure retirement. American Savings Education Council and America Saves coordinate the annual America Saves Week. Started in 2007, the week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status.

For years, Social Security has collaborated with America Saves Week to promote our shared mission of helping millions of people save for their future. This year, America Saves Week begins on February 27, but people like you are striving to save every day.

Visit www.myRA.gov if you do not have retirement savings as part of your job. myRA is a retirement savings account from the Department of the Treasury designed to help you put aside money for your retirement. You can invest in the fund according to your budget, putting you in control of your financial prospects.

Social Security’s “People Like Me” website has tailor-made information for preparing for your future. Our richly diverse country is made up of countless backgrounds, ethnicities, and nationalities, yet we all want the same thing — a secure future. You can see many of the diverse people we serve at www.socialsecurity.gov/people.

Younger people need to know, the earlier you start saving, the more your money can grow. Our website for young workers at www.socialsecurity.gov/people/youngpeople/saving.html has many resources that can help you secure today and tomorrow.

Veterans and wounded warriors, as well as their families, sometimes face unique obstacles when saving for their future. Our website has life-changing information at www.socialsecurity.gov/people/veterans.

After more than 80 years of success, we know that Social Security will always be there for you. Securing your today and tomorrow will always be our priority.

Vonda VanTil is the Public Affairs Specialist for West Michigan.  You can write her c/o Social Security Administration, 3045 Knapp NE, Grand Rapids MI 49525 or via email at vonda.vantil@ssa.gov  

By: Vonda VanTil, Social Security Public Affairs Specialist

Becoming disabled and unable to work is a very stressful time in one’s life. There are so many questions and unknowns when you have to transition out of the workforce due to medical issues. While an employer may offer short or long-term disability, most people faced with a disability will file for benefits with Social Security.

If you’re facing life with a disability and don’t know where to start, we encourage you to visit www.socialsecurity.gov/disabilityssi. After reading about Social Security disability, if you’re ready to file, you can do that online as well.

When applying, be prepared to answer a number of questions including:

•  When your conditions became disabling:
•  Dates you last worked;
•  The names, addresses, phone numbers, and dates of visits to your doctors;
•  The names of medications that you take and medical tests you’ve had; and
•  Marital information.

In addition, if you plan on applying for Supplemental Security Income (SSI) disability payments, for people with low income who haven’t paid enough in Social Security taxes to be covered, you will answer questions about:

•  Your current living arrangement, including who lives there and household expenses;
•  All sources of income for you and your spouse, if applicable; and
•  The amount of your resources, including bank account balances, vehicles, and other investments.

You can view our disability starter kit at www.socialsecurity.gov/disability/disability_starter_kits.htm.

Remember, we are there when you might be faced with one of the hardest obstacles of your life. Social Security helps secure today and tomorrow with critical benefits for people with severe disabilities, not just during retirement. Learn more at www.socialsecurity.gov.

Vonda VanTil is the Public Affairs Specialist for West Michigan.  You can write her c/o Social Security Administration, 3045 Knapp NE, Grand Rapids MI 49525 or via email at vonda.vantil@ssa.gov  

By: Vonda VanTil, Social Security Public Affairs Specialist

When most people begin their career, retirement is the farthest thing from their mind. Instead, they focus on trying to purchase a home, start a family, or perhaps save money for travel. Retirement seems so far away for many younger people that they delay putting aside money. However, it’s very important to save for the future — if you want to enjoy it.

An employer-sponsored retirement plan or 401(k) can be a useful way to set aside funds for retirement, especially if your employer offers matching funds on what you invest. If you don’t work for an employer that offers this type of plan, there are many other plans designed to help you save for retirement.

From solo 401(k)s to traditional and Roth IRAs, there are programs designed to fit a multitude of budgets. The earlier you start to save, the more funds you’ll have ready for retirement.

In addition to traditional programs, the U.S. Department of the Treasury now offers a retirement savings option called myRA. There’s no minimum to open the account, you can contribute what you can afford, and you can withdraw funds with ease. To learn more about myRA, visit www.myra.gov.

And, as always, there is Social Security, which is funded by taxes you pay while you work. To get estimates of future benefits and check your earnings record for accuracy, you can create a my Social Security account at www.socialsecurity.gov/myaccount.

Prepare for your future and start saving and planning—today!

Vonda VanTil is the Public Affairs Specialist for West Michigan.  You can write her c/o Social Security Administration, 3045 Knapp NE, Grand Rapids MI 49525 or via email at vonda.vantil@ssa.gov  

LANSING, Mich. – Michiganders who recently received a letter incorrectly saying their Medicare Part B premiums would no longer be subsidized need not worry about reductions in their Social Security checks due to this error.

A Michigan Department of Health and Human Services technical system error caused the Social Security Administration to erroneously send the letter to about 12,000 seniors and people with disabilities around the state who receive Medicare. They are among nearly 250,000 people in Michigan enrolled in the Medicare Savings Program, which helps pay Medicare premiums, coinsurance and deductibles.

“We want to make sure that people who received the incorrect letter understand that they won’t see a reduction in their Social Security checks because of this error,” said Chris Priest, deputy director of Medical Services for MDHHS. “We quickly corrected the mistake before any checks went out and are working now with our federal partners. MDHHS understands the worries that this faulty information caused seniors and other residents. We apologize for the confusion caused by the system error.”

MDHHS has implemented a technical correction and submitted updated information to the federal government. The Centers for Medicare and Medicaid Services is working with the Social Security Administration to update the information. MDHHS is closely monitoring the situation and working to ensure Social Security checks are correct.

In addition to the 12,000 incorrect notices, about 3,000 people who are no longer eligible for the Medicare Savings Program were sent notices stating that they will no longer receive that benefit. These are notices MDHHS sends to anyone who is no longer eligible due to losing Medicaid eligibility or because changes in income or assets made them ineligible for the Medicare Savings Program. These individuals would have received a notice from both Social Security Administration and MDHHS. Individuals who incorrectly received notices would have been notified by the Social Security Administration only.

The Social Security Administration will be sending corrected notices to Medicare recipients affected by the error. There is no need for these individuals to take any action. Anyone who has questions can contact their MDHHS caseworker.

Question: Will my son be eligible to receive benefits on his retired father’s record while going to college?

Answer: No. At one time, Social Security did pay benefits to eligible college students. But the law changed in 1981. We now pay benefits only to students taking courses at grade 12 or below. Normally, benefits stop when children reach age 18 unless they are disabled. However, if children are still full-time students at a secondary (or elementary) school at age 18, benefits generally can continue until they graduate or until two months after they reach age 19, whichever is first. If your child is still going to be in school at age 19, you’ll want to visit www.socialsecurity.gov/schools.

Question: When a person who has worked and paid Social Security taxes dies, are benefits payable on that person’s record?
Answer: Social Security survivor’s benefits can be paid to:

• A widow or widower — unreduced benefits at full retirement age, or reduced benefits as early as age 60;

• A disabled widow or widower — as early as age 50;

• A widow or widower at any age if he or she takes care of the deceased’s child who is under age 16 or disabled, and receiving Social Security benefits;

• Unmarried children under 18, or up to age 19 if they are attending high school full time. Under certain circumstances, benefits can be paid to stepchildren, grandchildren or adopted children;

• Children at any age who were disabled before age 22 and remain disabled; and

• Dependent parents age 62 or older.

Even if you are divorced, you still may qualify for survivor’s benefits. For more information, go to www.socialsecurity.gov.

Question: I want to make sure I have enough credits to receive Social Security retirement benefits when I need them. How can I get a record of my Social Security earnings?

Answer: The best way for you to check whether you have earned enough credits (40 total, equaling 10 years of work) is to open a free my Social Security account at www.socialsecurity.gov/myaccount to review your Social Security Statement.

Once you create an account, you can:Keep track of your earnings to make sure your benefit is calculated correctly. The amount of your payment is based on your lifetime earnings;

*Get an estimate of your future benefits if you are still working;

*Get a replacement 1099 or 1042S.

*Get a letter with proof of your benefits if you currently receive them; and

*Manage your benefits:

*Change your address; and

*Start or change your direct deposit.

Accessing my Social Security is quick, convenient, and secure, and you can do it from the comfort of your home.

In some states, you can even request a replacement Social Security card online using my Social Security. Currently available in some areas in the United States, it’s an easy, convenient, and secure way to request a replacement card online. To find out where we offer this service, visit www.socialsecurity.gov/ssnumber.

By Stephanie Holland, Social Security Public Affairs Specialist

Over half a million people who live outside the United States receive some kind of Social Security benefit, including retired and disabled workers, as well as spouses, widows, widowers, and children.

If you’re a U.S. citizen, you may receive your Social Security payments outside the United States as long as you are eligible. When we say you are “outside the United States,” we mean you’re not in one of the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands, or American Samoa. Once you’ve been outside the United States for at least 30 days in a row, we consider you to be outside the country.

If you are traveling outside the U.S. for an extended amount of time, it’s important that you tell Social Security the date you plan to leave and the date you plan to come back, no matter how long you expect your travel to last. Then we can let you know whether your Supplemental Security Income (SSI) will be affected.

You can use this online tool to find out if you can continue to receive your Social Security benefits if you are outside the United States or are planning to go outside the United States at www.socialsecurity.gov/international/payments_outsideUS.html.

This tool will help you find out if your retirement, disability, or survivor’s payments will continue as long as you are eligible, stop after six consecutive calendar months, or if certain country specific restrictions apply.

When you live outside the United States, periodically we’ll send you a questionnaire. Your answers will help us figure out if you still are eligible for benefits. Return the questionnaire to the office that sent it as soon as possible. If you don’t, your payments will stop.

You can also read the publication titled Your Payments While You Are Outside the United States at www.socialsecurity.gov/pubs.

Social Security is with you through life’s journey, even if that journey takes you outside the United States.

Stephanie Holland is the Public Affairs Specialist for West Michigan.  You can write her c/o Social Security Administration, 455 Bond St Benton Harbor MI 49022 or via email at stephanie.holland@ssa.gov  

By Stephanie Holland, Social Security Public Affairs

It’s leap year and that means one thing—you can add one extra calendar day to your February schedule. Many people are preparing for the upcoming elections. Others might be getting a jump on spring-cleaning. What will you do with your extra day?

You could use a few of your extra minutes to check out what Social Security offers   www.socialsecurity.gov/onlineservices. There, you can:

Apply for retirement, disability, and other benefits;

Get your Social Security Statement;

Appeal a recent medical decision about your disability claim;

Find out if you qualify for benefits;

If you’re planning or preparing for retirement, you can spend a fraction of your extra 24 hours at my Social Security. In as little as 15 minutes, you can create a safe and secure my Social Security account. More than 21 million Americans already have accounts. Sign up today at www.socialsecurity.gov/myaccount. With a my Social Security account, you can:

Obtain an instant, estimate of your future Social Security benefits;

Verify the accuracy of your earnings record — your future benefit amounts are based on your earnings record;

Change your address and phone number, if you receive monthly Social Security benefits;

Sign up for or change direct deposit of your Social Security benefits;

Get a replacement SSA-1099 or SSA-1042S for tax season; and

Obtain a record of the Social Security and Medicare taxes you’ve paid.

If you have a little time to spare, you can always check out our blog, Social Security Matters, at blog.socialsecurity.gov. There, you will find guest posts by Social Security experts, in-depth articles, and answers to many of your questions about retirement, benefits, and healthcare. Each post is tagged by topic so you can easily search for what matters most to you.

Leaping from webpage to webpage, you can easily see that Social Security has you covered all year long, not just on that extra day in February. Remember, you can access our homepage that links to our wide array of online services any day of the — socialsecurity.gov.

Stephanie Holland is the Public Affairs Specialist for West Michigan.  You can write her c/o Social Security Administration, 455 Bond St, Benton Harbor MI 49022 or via email at stephanie.holland@ssa.gov

Available through a my Social Security Account

The Social Security Administration introduced the expansion of online services for residents of Michigan available through its my Social Security portal at www.socialsecurity.gov/myaccount. Carolyn W. Colvin, Acting Commissioner of Social Security, announced that residents of Michigan can use the portal for many replacement Social Security number (SSN) card requests. This will allow people to replace their SSN card from the comfort of their home or office, without the need to travel to a Social Security office.

“I’m thrilled about this newest online feature to the agency’s my Social Security portal and the added convenience we are providing residents of Michigan,” Acting Commissioner Colvin said. “We continue to provide world-class customer service to the public by making it safe, fast and easy for people to do business with us online and have a positive government experience. I look forward to expanding this service option across the country.”

The agency plans to conduct a gradual roll out of this service; Michigan is one of four states, plus the District of Columbia, where this option is initially available. Throughout 2016, the agency will continue to expand the service option to other states and plans to offer this to half of the nation’s population by the end of the year. This service will mean shorter wait times for the public in the more than 1,200 Social Security offices across the country and allows staff more time to work with customers who have extensive service needs.

U.S. citizens age 18 or older and who are residents of Michigan can obtain a replacement SSN card online by creating a my Social Security account. In addition, they must have a U.S. domestic mailing address, not require a change to their record (such as a name change), and have a valid driver’s license, or state identification card in some participating states.

my Social Security is a secure online hub for doing business with Social Security, and more than 22 million people have created an account. In addition to Michigan residents replacing their SSN card through the portal, current Social Security beneficiaries can manage their account—change an address, adjust direct deposit, obtain a benefit verification letter, or request a replacement SSA-1099. Medicare beneficiaries can request a replacement Medicare card without waiting for a replacement form in the mail. Account holders still in the workforce can verify their earnings and obtain estimates of future benefits.

For more information about this new online service, visit www.socialsecurity.gov/ssnumber .

By: Stephanie Holland, Social Security Public Affairs Specialist

There’s been an awakening. Have you felt it? 

This winter, Americans of all generations are awakening to the newest film in the Star Wars franchise, Star Wars: The Force Awakens. Many readers probably remember seeing the first Star Wars film in theaters in 1977. Audiences watched with fascination at the advanced technology used by the Jedi and Sith in a galaxy far, far away.

We still don’t have interstellar travel, personal robots, or holographic communication, but we now use technology in our daily lives that would have seemed like science fiction in 1977. At that time, it would still be years until the modern Internet and smart phones would be part of our lives. Now, many of us can’t imagine life without such technology.

Many people who need to do business with Social Security are finding an awakening of sorts in how easy it is to use our online services. We continually expand our online services to reflect changing customer needs, and to provide you with world-class service. Our online services are convenient and secure, and allow you to conduct much of your business with us from the comfort of your home, office, or space freighter.

You can open a free personal online my Social Security account at www.socialsecurity.gov/myaccount, where you can keep track of your annual earnings and verify them. Why is that important?  Because your future benefits are based on your annual earnings. With your account, you can also get an estimate of your future benefits if you are still working; or, if you currently receive benefits, you can use your account to manage your benefits, and get an instant letter with proof of your benefits. You can also request a Medicare card replacement.

“The force is calling to you. Just let it in.” This winter, check out our online services and join the millions of other Americans who have already awakened their own personal my Social Security accounts. A my Social Security account is a force to be reckoned with. And you don’t need to be a Jedi to have one.

Learn more at www.socialsecurity.gov. Once you go online, this force will be with you … always.

Stephanie Holland is the Public Affairs Specialist for West Michigan.  You can write her c/o Social Security Administration, 455 Bond St, Benton Harbor MI 49022 or via email at stephanie.holland@ssa.gov