Archive for the ‘Tax Statements’ Category
Size of Income, 1962 and 2006
Median annual income for married couples and nonmarried persons aged 65 or older has increased markedly since 1962 (the earliest year for which data are available). Even after adjusting for inflation, median income has risen 100% for married couples and 111% for nonmarried persons. A married couple is aged 65 or older if the husband is aged 65 or older or if the husband is aged 54 or younger and the wife is 65 or older.
Receipt of Income, 1962 and 2006
Social Security benefits—the most common source of income for married couples and nonmarried persons aged 65 or older in 1962—are now almost universal. The proportion of the aged population with asset income—the next most common source—is similar to that in 1962. Over the 44-year period, receipt of private pensions has more than tripled, and receipt of government pensions has increased by approximately 50%. The proportion of couples and nonmarried persons aged 65 or older who had earnings was smaller in 2006 than in 1962.
Shares of Aggregate Income, 1962 and 2006
In 1962, Social Security, private and government employee pensions, income from assets, and earnings made up only 84% of the aggregate total income of couples and nonmarried persons aged 65 or older, compared with 97% in 2006. The shares from Social Security, private pensions and government employee pensions have increased since 1962. The shares from earnings and asset income are the same in 2006 as they were in 1962
Relative Importance of Social Security, 2006
In 2006, 89% of married couples and 88% of nonmarried persons aged 65 or older received Social Security benefits. Social Security was the major source of income (providing at least 50% of total income) for 52% of aged beneficiary couples and 72% of aged nonmarried beneficiaries. It was 90% or more of income for 20% of aged beneficiary couples and 41% of aged nonmarried beneficiaries. Total income excludes withdrawals from savings and nonannuitized IRAs or 401(k) plans; it also excludes in-kind support, such as food stamps and housing and energy assistance
Poverty Status Based on Family Income, 2006
The aged poor are those with income below the poverty line. The near poor have income greater than or equal to the poverty line and less than 125% of the poverty line. Nonmarried women and minorities have the highest poverty rates, ranging from 16.8% to 22.7%. Married persons have the lowest poverty rates, with 4.4% poor and 3.3% near poor. Overall, 9.4% are poor and 6.2% are near poor.
Earnings in Covered Employment, 1937–2007
People contribute to Social Security through payroll taxes or self-employment taxes (FICA and SECA), as required by the Federal Insurance Contributions Act. The maximum taxable amount is updated annually on the basis of increases in the average wage. Of the 163 million workers with earnings in Social Security–covered employment in 2007, 6% had earnings that equaled or exceeded the maximum amount subject to taxes, compared with 3% when the program began and a peak of 36% in 1965. About 83% of earnings in covered employment were taxable in 2007, compared with 92% in 1937.
Insured Status, 1970–2007
The percentage of persons aged 20 or older who are insured for benefits has increased over time. To be fully insured, a worker must have at least one work credit (quarter of coverage) for each year elapsed after age 21 (but no earlier than 1950) and before the year in which he or she attains age 62, becomes disabled, or dies. The maximum number of work credits needed to be fully insured is 40. An individual is said to be permanently insured if he or she has earned 40 work credits. To be insured for disability, the worker must be fully insured and have at least 20 work credits during the last 40 calendar quarters. (Requirements for disability-insured status are somewhat different for persons younger than age 31.) Disability benefits are available up to full retirement age (FRA).
- SSA paid benefits to about 54.7 million people in 2007
- Social Security provided at least half the income for 64 percent of the aged in 2006
- Social Security benefits were awarded to about 4.7 million people in 2007
- Women accounted for 56 percent of adult Social Security beneficiaries in 2007
- The average age of disabled-worker beneficiaries was 52.4 in 2007
- Eighty-four percent of SSI recipients received payments because of disability or blindness in 2007
Annual Statistical Supplement
The Annual Statistical Supplement, 2008 is now available in both and PDF.
The Supplement is a major resource for data on the nation’s social insurance and welfare programs. The majority of the statistical tables present information about programs administered by the Social Security Administration—the Old-Age and Survivors Insurance and Disability Insurance programs, known collectively as Social Security, and the Supplemental Security Income program. In addition, data are presented on the major health care programs—Medicare and Medicaid—and income-maintenance programs. The Supplement also includes program summaries and legislative histories that help users of the data understand these programs.
The next complete edition of the Supplement is expected in December 2009. Subsections will be posted on a flow basis as they become available. Data for the edition currently in progress are preliminary and subject to revision until the edition is complete.
- Edition currently in progress:
Annual Statistical Supplement, 2009 - Most recently completed edition:
Annual Statistical Supplement, 2008
Part B (Medical Insurance)
Helps Pay For:
Doctors’ services, outpatient hospital care, and some other medical services that Part A doesn’t cover, such as the services of physical and occupational therapists, and some home health care. Part B helps pay for these covered services and supplies when they are medically necessary. Information about your coverage under Medicare Part B can be found in the Your Medicare Coverage database.
Cost:
Most Medicare beneficiaries will continue to pay the same $96.40 Part B premium amount in 2010. Beneficiaries who currently have the Social Security Administration (SSA) withhold their Part B premium and have incomes of $85,000 or less (or $170,000 or less for joint filers) will not have an increase in their Part B premium for 2010. For additional details, see our FAQ titled: Will my Medicare Part B premium increase in 2010?
For all others, the standard Medicare Part B monthly premium will be $110.50 in 2010, which is a 15% increase over the 2009 premium. The Medicare Part B premium is increasing in 2010 due to possible increases in Part B costs. If your income is above $85,000 (single) or $170,000 (married couple), then your Medicare Part B premium may be higher than $110.50 per month. For additional details, see our FAQ titled: 2010 Part B Premium Amounts for Persons with Higher Income Levels
In some cases this amount may be higher if you didn’t choose Part B when you first became eligible at age 65. The cost of Part B may go up 10% for each 12-month period that you could have had Part B but did not sign up for it, except in special cases. You will have to pay this extra 10% as long as you have Medicare Part B.
Enrolling in Part B is your choice. You can sign up for Part B anytime during a 7-month period that begins 3 months before you turn 65. Please call Social Security at 1-800-772-1213 or visit or call your local Social Security office to sign up. If you choose to have Part B, the premium is usually taken out of your monthly Social Security, Railroad Retirement, or Civil Service Retirement payment. If you don’t get any of the above payments, Medicare sends you a bill for your Part B premium every 3 months. You should get your Medicare premium bill by the 10th of the month. If you don’t get your bill by the 10th, call Social Security at 1-800-772-1213, or your local Social Security office. If you get benefits from the Railroad Retirement Board, call your local RRB office or 1-877-772-5772.
For More Information About Medicare Part B Coverage:
Visit the Your Medicare Coverage database.
Estimates are nearing $1- trillion dollars to overhaul health care with a government funded program. The question for many remains, “who is going to pay for it all.”
Leaders in the House have suggested that those individuals earning more than $250,000 a year and couples with at least $350,000 or more are going to get hammered in tax debt to fund this.
Pelosi (D-San Francisco) suggested that this threshold was too low and needed to be raised to a half million for individuals and $1 million for couples. What are your thoughts? Have we taxed the middle class rich enough or should politicians go for the throat?
How do I make sure my records are accurate?
Each year your employer sends a copy of your W-2 (Wage and Tax Statement) to Social Security. They compare your name and Social Security number on the W-2 with the information in their files. They add the earnings shown on the W-2 to your Social Security record.
It is critical that your name and Social Security number on your Social Security card agree with your employer’s payroll records and W-2 so that they can credit your earnings to your record. It is up to you to make sure that both Social Security’s records and your employer’s records are correct. If your Social Security card is incorrect, contact any Social Security office to make changes. Check your W-2 form to make sure your employer’s record is correct and, if it is not, give your employer the accurate information.
Over Age 25 and Not Receiving Benefits
If you are a worker age 25 and older and not receiving benefits, you receive a Social Security Statement every year that summarizes your earnings. Review this Statement to make sure that all your earnings are included. If your Statement does not include all your earnings, let your employer and your Social Security office know about any incorrect information.