Original article on the U.S. social security system

The U.S. federal government provides two major retirement benefits for retirees: the Social Security Pension (SSI) and the Medical Insurance Program (MIP), known as Medicare, which should be understood by anyone living in the U.S.

Social Security Tax

The government requires everyone who works or earns income from a business to pay a Social Security Tax, known as FICA.

Social Security Tax

The government requires everyone who works or earns income from a business to pay a Social Security tax, or FICA, which is divided into a pension tax and a Medicare tax. The former, at 6.2 percent of income, is subject to an annual cap, which is $6,045 this year, meaning that only $97,500 of income is subject to the pension tax; the latter, at 1.45 percent of income, is not subject to a cap. These taxes are clearly spelled out on the W-2 form. Each year, about two months before your birthday, you'll receive a statement from the Social Security Administration listing the income on which you pay Social Security taxes each year and the number of work credits you've earned.

The 7.65% paid by the employed is only half of the social security tax, and the employer has to pay the other half for you, i.e., two taxes*** of 15.3% of the income; SELF EMPLOYED is required to pay all of the tax, i.e., 15.3% of the net income, which is called the "Self-Employment Tax", and the ceiling of the Self-Employment Tax is the same as the employed. The upper limit of the Self-Employment Tax is the same as that of an employed person.

Working Points

When you pay the Social Security tax, you can earn "points". You can earn one point for $1,000 in income, up to a maximum of four points per year, so you only need to earn $4,000 a year to earn the full four points. There is no limit to the number of points that can be earned per quarter, so even if you work for only one month, you can earn up to four points per year as long as you earn enough.

The general retirement benefit requires a taxpayer to have 40 points to qualify, so he or she must have worked for 10 years, but there are exceptions. The first exception is that a taxpayer's spouse, even if he or she has never worked, can receive half of the taxpayer's pension in the future (this half of the pension is additional and does not affect the amount of the taxpayer's own pension); a divorced ex-spouse, if the marriage lasted 10 years or more, is also eligible for half of the ex-spouse's pension if he or she has not remarried.

There are also two special cases in which a taxpayer can receive retirement benefits even if he or she has fewer than 40 points: first, if the taxpayer dies, even if he or she has fewer than 40 points, his or her spouse and children can receive the benefits; and second, if the taxpayer is unable to work due to a physical disability, he or she may be eligible to receive a "disability benefit".

Pension amount

The amount of your pension depends on how long you have worked and how much tax you have paid. The government calculates the amount of your pension based on your highest earning period of 35 years.

How can I predict how much I'll get in the future? Every year, two months before your birthday, the government sends you an annual report that lists your past earnings and an estimate of your future pension. It is okay if your earnings for the past year are not included in the report, because earnings are usually not included until more than a year later. In addition, if you have not earned 40 points, you will not have an estimated pension amount.

Another way to estimate your pension is to go directly to the Social Security Administration's Web site: www.ssa.gov然后点按 to access the "CHOOSE A BENEFIT CALCULATOR" section, where you will find three ways to estimate your future Social Security pension.

The first estimation method is the simplest, as long as you put in your age and total income this year, the Social Security Administration will estimate your previous and future income to estimate how much pension you can get in the future; however, this method is only a rough estimation.

The second method of estimation is to input your past income and other data into the Internet, and then the Internet will immediately estimate your future income for you, and then estimate the amount of pension you will receive in the future. This method is the same as the calculation on the statement you receive each year.

The third and most accurate method is to download a program from the internet to do the calculation.

Besides waiting for the government to send you an annual report, you can also go to the Social Security Administration's Web site and enter your information, or you can request a copy of SSA Form 7004 from the agency or download it online.

Retirement age

The earliest age at which you can receive a pension is 62, but early receipt of a pension can result in a lifetime discount, depending on how close you are to the Full Retirement Age (FRA). The so-called "Full Retirement Age" used to be 65, but has now been raised so that readers over 50 to 61 can avoid the discount at 66, while readers in their forties can "fully retire" only at 67.

There's one more thing to consider when taking an early pension, and that's the fact that earnings from continuing to work before 'full retirement age' can affect the amount of the pension. If you work for more than $12,690, your pension will be reduced by $1 for every $2 you earn above that.

Folks who have worked for 10 years or more will be eligible for Social Security retirement benefits at age 62, but the amount will be reduced by about 25 percent over the course of their lives. Should I take my Social Security pension early or not?

Personal financial need is, of course, the first consideration. The second consideration is longevity, because the longer you live, the more disadvantageous it will be to take an early retirement pension. However, no one can predict how long you will live, and you can only make an estimate based on your personal health or even your family's longevity data. The third consideration is whether you will continue to work until you reach the "full retirement age" (usually around 66). Before this age, if you work for more than $12,690, it will start to affect your Social Security Pension, reducing it by $1 for every $2 you earn above this limit, but after you reach the "full retirement age", there is no such problem.

There is a little-known rule that if you have taken your Social Security Pension early and regret it when you reach the "full retirement age", you can get your normal pension amount by returning the early pension to the government, without any interest or penalty. Therefore, some people think that they should withdraw their pensions, invest the money and return the principal amount to the government in the future. However, whether this is beneficial depends not only on the performance of the investment, but also on whether it exceeds the income limit mentioned above.

Decoding 'Social Security Retirement'

Last issue explained the basics of the Social Security Retirement System, and in this issue we examine some more specific topics, all related to your Social Security benefits.

Social Security Retirement Annual Report

Every year, about two months before your birthday, you receive an annual report from the Social Security Administration, which lists your salary for the year on the right, and on the left, the number of Quarter Points you have earned. If you have 40 quarter points or more, the SSA will list your pension amount. The first figure is the amount of your early retirement pension at age 62, and the other is the amount of your pension when you reach full retirement age.

Some people are under the mistaken impression that because they have already earned these pensions, they will receive this amount even if they stop working now. Others think that because they continue to work and pay Social Security taxes, their pensions should go up every year, so they are puzzled when they see a decrease in their pensions from last year.

The point is that these pension amounts are estimates, and they assume that you work until you retire and that you earn about the same amount each year as you did on average over the past two years. If you earn a little less than that this year, your pension figure will fall, and of course if you stop working from now on, your estimated annual pension will fall each year.

Up.

Early retirement?

For those who have worked for 10 years or more, you'll be eligible for Social Security retirement benefits at age 62, but your benefits will be reduced by about 25 percent over the course of your life. Should I take my Social Security pension early?

Personal financial need is, of course, the first consideration. The second consideration is longevity, because the longer you live, the more disadvantageous it will be to take an early retirement pension. However, no one can predict how long you will live, and you can only make an estimate based on your personal health or even your family's longevity data. The third consideration is whether you will continue to work until you reach the "full retirement age" (usually around 66). Before that age, if you work for more than $12,690, it will start to affect the amount of your Social Security pension, reducing it by $1 for every $2 you earn above that limit.

Spouses and Social Security benefits

Folks who don't have enough CREDIT to qualify for Social Security benefits can get Social Security benefits, including pensions and Medicare, on the basis of their spouses, who have 40 CREDIT points. Medicare.

As long as you have been married for at least ten years, you can still get half of your ex-spouse's Social Security pension even after a divorce, as long as you have not remarried. This benefit is available even if your ex-spouse is still alive, or even if he or she has remarried, as long as you have not remarried. If your ex-spouse has passed away, you can still get your pension at age 60, which is two years earlier than the normal age of 62.

As long as one spouse is eligible, the other spouse can get Medicare. The ineligible spouse, however, must be 65 to receive Medicare. Assuming that the eligible spouse is under 65, but the other ineligible spouse is already 65, can this spouse get health insurance on his or her own first?

The answer is: Not necessarily, depending on whether the eligible spouse is over age 62. If he or she is under 62, then the other ineligible spouse, even if he or she is already 65, will not be able to get health insurance. However, if the eligible spouse is 62 or older, then the ineligible spouse can begin to get health insurance, including Part A hospitalization insurance and Part B doctor's visit insurance, at age 65.

"Survivors Benefit" to marry for nine months

SOCIAL SECURITY (SOCIAL SECURITY) RETIREMENT SYSTEM, there is a "Survivors Benefit" (SURVIVORS BENEFIT) program, so that people who have always been enrolled in the social security insurance, even if they have not worked for ten years, in the event of the unfortunate death of a family member can also immediately get social security benefits, including Children under the age of 18 can receive monthly cash benefits, and if the spouse has to stay at home to take care of the children, he or she can also receive cash benefits, and even parents who are dependent on the deceased, as long as they are 62 years old or older, can also receive cash benefits.

But in order to receive these benefits, the couple must have been married for at least nine months, unless the death was accidental. Recently, I saw a family where the couple had never been formally married and had several children at home. Unfortunately, the husband passed away due to illness, and he had only gone through the marriage formalities a few months before his death, which was less than nine months, so the survivors would most likely not be able to get the Survivors' Benefit.

There are a few exceptions to the rule that survivors can receive benefits if they were married for less than nine months, that is, if the couple had children of their own. If the child is from a previous marriage, the couple must go through the formal adoption process in order to receive survivor's benefits after less than nine months of marriage.

Social Security Pension Tax Issues

Is the Social Security Pension taxable?

If all or most of your income is from Social Security pensions, they are not taxed at all. Even if you have other income on top of your pension, it doesn't necessarily mean that your Social Security pension will be taxed. Even if you do, only part of your pension will be taxed as income on your tax return for the year.

To work out whether your pension is taxable, you need to add half of your pension to your other income. If you are a married couple*** filing a tax return together, the whole of your pension will be exempt from tax if it is less than $32,000; and if you are a single person, you won't have to pay tax at all on your pension, as long as it is not more than $25,000.

If the amount is more than $25,000, part of the pension will be taxed as income. Married*** filing the same tax return, if the amount is more than $32,000 but not more than $44,000, half of the maximum social security pension will be taxed as income, and if the amount is more than $44,000, 85% of the social security pension may be taxed. For a single person, if the amount is more than $34,000, 85% of the pension may be taxable.

Understanding the Social Security Retirement System

The last two installments of this column have been about the Social Security Retirement System, but here's some more information that may be less familiar to you.

Is the retirement fund asset protected?

If a retired person has a lawsuit or a debt, or if there is another economic crisis, or if he or she is sued, or even if he or she has to declare bankruptcy, will his or her pension be protected? Most retirement plans offered by companies, including 401(k) plans, are covered by federal retirement law (ERISA) and are not available to creditors, i.e., they are protected. The U.S. Supreme Court ruled in 1992 and 2004 that pensions are clearly protected from creditors in the event of bankruptcy. In a recent Supreme Court decision, individual retirement accounts (IRAs) were also protected on the grounds that such savings accounts are related to the age of the debtor, and that it would be unfair to require a debtor to use retirement savings to repay a debt because of the penalties for withdrawals made before the age of 60.

Are Social Security pensions also guaranteed? The Old Age Pension (SSI) is absolutely guaranteed. According to Section 207 of the Social Security Act, the Social Security Pension (SOCIAL SECURITY) is also guaranteed against creditors, but there are a few exceptions to this guarantee, including: arrears of "child support" or divorce alimony, arrears of IRS taxes, and arrears of debts owed to other parts of the federal government, etc. Therefore, even though the SOCIAL SECURITY Pension has asset protection, the degree of protection is slightly less than that of the Social Security Pension. Therefore, although Social Security pensions also have asset protection, the level of protection is slightly less than other pensions.

Foreigners and the Social Security Tax

Most people living in the U.S., whether they are working or doing business, have to pay FICA, or the Self-employment Tax, which is half of what an employer and half of what an employee pays, and half of what a self-employed person pays.

This tax is a way to save for future retirement benefits, but some people working in the U.S. on non-immigrant visas will not be retiring in the U.S. in the future, so do they need to pay the tax? If they have paid, can they get the benefits back before they leave the U.S. in the future?

According to U.S. Tax Code Sections 3101 and 3111, all workers in the U.S. are required to pay FICA or Self-employment Tax, but there are several types of temporary visas that clearly state that they are not subject to the FICA tax; these include international students with F1 and M1 visas, exchange scholars with J1 visas, and those on Q1 visas for cultural exchanges. Other than these temporary visas, workers with H1, L1, or TN visas are required to pay FICA and will not be able to recoup the benefits in the future.

The tax law also mentions that some foreign nationals, who are sent to work in the U.S. by a foreign company and who have to continue to pay FICA-like taxes in a foreign country, can prove that they are exempt from the FICA tax; however, at present, only residents of the 18 countries that have agreements with the U.S. are allowed to utilize this tax law, including the U.K. and Canada, but Hong Kong, China and Taiwan do not have such an agreement.

International students are exempt from social security tax when they work

Some readers with an F-1 VISA, although they are not allowed to work during the week, may be able to work under special circumstances, such as during a post-graduation internship, where they will receive a paycheck.

For these student-visa holders, employers do not have to pay Social Security (FICA), MEDICARE, or Unemployment Insurance (FUTA) taxes, although they do have to withhold federal and state income taxes as usual. Since employers are usually not that familiar with the tax regulations regarding international students. Some companies hire H-1B visa holders who are not permanent residents but are taxed the same as regular U.S. taxpayers. Employers may assume that F-1 visa holders are taxed the same, so you should be proactive in reminding your employer of this.

If an employer has withheld taxes for an international student that should not have been withheld, how can I get them back? Either the employer or the employee can file an IRS Form 843, along with proof of visa documentation and documents such as a W-2 showing that FICA and FUTA taxes were withheld, and send it to the IRS to get the taxes back.

The above exemption from FICA and FUTA tax withholding applies not only to international students on F-1 visas, but also to those on J-1, M-1 or Q-1 visas.

Residence abroad and Social Security pensions

If you decide to move abroad after retirement, for example, to Hong Kong or China, can you continue to receive Social Security pensions abroad, assuming that you have at least 40 quarter credits?

If you're a U.S. citizen, you can ask the government to send your pension to a foreign address on a monthly basis even if you're living overseas for a long period of time, as long as you're not residing in Cuba or North Korea. The government can send your pension to a bank account in Hong Kong or Japan by automatic transfer if the bank account is located in Hong Kong or Japan, but not if the account is located in another Asian country.

If you are not a U.S. citizen, you may not be able to access your Social Security retirement benefits overseas. There are some exceptions to this rule. There are some countries that allow citizens to receive Social Security pensions even if they live overseas for an extended period of time, but this does not include citizens of China, Hong Kong, Macau, and Taiwan. Therefore, even if a citizen of China, Hong Kong, Macau or Taiwan has permanent residency in the U.S. (green card) and has worked in the U.S. for more than 10 years, the Social Security program stops when you are away from the U.S. for more than six months. In fact, as long as you leave the U.S. border for 30 consecutive days, you are already considered to have left the U.S., and will return to the U.S. in the future to reside in the U.S. for at least 30 consecutive days before returning to the United States.

Is the Social Security system safe?

We've explained the Social Security Retirement System (SSRS) in three installments, and you may have wondered whether the system will still be in place when you retire.

You may often read that the Social Security system is going broke, but that's not a myth. Because Americans are living longer, the number of people retiring is growing, the number of people working in the next generation isn't, and the Social Security fund is paying out more than the tax revenues it takes in, the government is looking for ways to deal with that. President George W. Bush has proposed to partially privatize Social Security pensions so that people can invest the money, but there is so much opposition that it is extremely difficult to overhaul the system.

But because so many Americans rely on this retirement benefit, no politician has dared to propose its elimination, and even changes to it have had to be made quietly.

The government has been gradually raising the "full retirement" age to 67 for a 30 year old this year, and I believe this age will be pushed up to 70 or more in the future

The situation is different in different countries. I'm sure this will be pushed up to 70 or more in the future.