Most people don’t know this, but I wanted to make sure that you know that it’s our responsibility to report your life changes to the Social Security Admin. It can save you… or someone that you care about lot’s of problems later on.
For example, I’ve heard of cases where clients failed to report a remarriage and later had to repay all of the divorced-spouse benefits they received and were not entitled to. And for clients receiving SS benefits before their full retirement age (FRA), it is very important that they provide earnings (wages, commissions, etc.) estimates for the earnings test.
The actual earnings will be reported by the employer at the end of the year, but to avoid under-withholding, clients should provide accurate estimates in advance. You might get away with over-payments for a while, but the truth will eventually come out, and could result in a large debt to SSA.
The SSA says this: You do have some responsibilities to report information to the Social Security agency. It is important to understand that you need to ensure all your reportings are true and accurate so that you don’t have any over-payments as a result, or even make a false claim where you could lose your benefits altogether.
There are a number of other circumstances that you will need to report information to the Social Security office so that you can ensure you receive your payments. Failure to do so with some of these circumstances can prolong payments, reduce your earnings, or eliminate them if not properly disclosed.
These “life changes” would include the following:
- Estimated earnings change
- Change of address
- If you change direct deposit bank accounts
- If a person is not able to manage funds (dementia)
- If you receive a pension from non-covered work
- If you get married or divorced
- If you change your name
- If you get benefits because you are caring for a child
- If someone adopts a child who is receiving benefits
- If you become a “parent” after you begin to receive benefits
- If you have an outstanding warrant for your arrest
- If you are convicted of a criminal offense
- If you have committed a crime and are confined to an institution
- If you violate a condition of parole or probation
- If you leave the United States to live elsewhere
- If your citizen status changes
- If a beneficiary dies
- If you are receiving Social Security and Railroad Retirement benefits