Guide to
Social Security Benefits

Part 4

What You Need To Know After You Sign Up For Social Security

• What You Need To Report To Us

• If You Disagree With A Decision We Make

• How Your Earnings Affect Your Benefits

• Your Benefits May Be Taxable

• When Somebody Needs Help Managing Benefits

After you've signed up for retirement, disability, survivors, Medicare, or SSI benefits, your involvement with Social Security is just beginning. This section of the report provides a brief overview of a few things you need to know about your benefits and how they work.

When you start getting Social Security, we send you a report addition, we produce a variety of publications that explain other facts you need to know about Social Security and SSI. If you need more information, call or visit Social Security to tell us your situation. There is probably a pamphlet or fact sheet we can send you that will answer your questions.

What You Need To Report To Us

People who get Social Security should let us know when something happens that might affect their benefits. Here are some examples:

• If they move;

• If they get married or divorced;

• If their name changes;

• If their income or earnings change;

• If a child is born or adopted;

• If a beneficiary is imprisoned;

• If they leave the United States;

• If a beneficiary dies.

If You Disagree With A Decision We Make

Whenever we make a decision that affects your eligibility for Social Security or SSI benefits, we send you a letter that explains our decision. If you disagree with our decision, you have the right to appeal it. In other words, you can ask us to review your case. If our decision was wrong, we will change it.

For More Information: To learn more about the appeals process, call or visit any Social Security office to ask for a copy of the fact sheet called The Appeals Process (Publication No. 05-10041). In addition, you have the right to be represented by a qualified person of your choice when dealing with Social Security. For more information, ask us for a copy of the fact sheet, Social Security And Your Right To Representation (Publication No. 05-10075).

How Your Earnings Affect Your Benefits

There is a provision in the law that limits the amount of money you can earn and still collect all your Social Security benefits. This provision affects people under the age of 70 who collect Social Security retirement, dependents, or survivors benefits. (Earnings in or after the month you reach age 70 won't affect your Social Security benefits.) People who work and collect disability or SSI benefits have different earnings requirements and should report all their income to Social Security.

We count only the earnings you make from a job or your net profit if you're self-employed. This includes compensation such as bonuses, commissions, and vacation pay. It does not include such items as pensions, annuities, investment income, interest, Social Security, veterans, or other government benefits.

For More Information: If you would like to learn more about the Social Security earnings limits and how they affect you, call or visit any Social Security office to ask for a free copy of How Work Affects Your Social Security Benefits (Publication No. 05-10069).

Your Benefits May Be Taxable

Some people who get Social Security will have to pay taxes on their benefits. You will be affected only if you have substantial income in addition to your Social Security benefits.

For More Information: 
If you would like more information about the taxation of your Social Security benefits, there are some IRS publications that will help you. Call or visit IRS to ask for a copy of Publication 554, Tax Information for Older Americans, and Publication 915, Social Security Benefits And Equivalent Railroad Retirement Benefits.

When Somebody Needs Help Managing Benefits

Sometimes, people who receive Social Security or SSI are not able to handle their own financial affairs. In those cases, and after a careful investigation, we appoint a relative, a friend, or another interested party to handle their Social Security matters. We call that person a "representative payee." All Social Security or SSI benefits due are made payable in the representative payee's name on behalf of the beneficiary. Here's An Important Point: If you have "power of attorney" for someone, that does not automatically qualify you to be his or her representative payee.

If you are a representative payee, you have important responsibilities:

• You must use the Social Security or SSI benefits for the personal care and well-being of the beneficiary. Any excess funds must be saved on the beneficiary's behalf.

• You must keep Social Security informed of any events that might affect the beneficiary's eligibility for benefits. For example, you should tell us if the beneficiary moves or gets a job. And, of course, you should tell us when the beneficiary dies.

• You must file a periodic accounting report with Social Security that shows how you spent or saved the benefits you were paid.

For More Information: 
If you would like to learn more about receiving benefits on behalf of another individual call or visit any Social Security office to ask for a copy of the brochure, A Guide For Representative Payees (Publication No. 05-10076).