Social Security has long been seen as a cornerstone of social mobility.
The program, however, is also a cornerstone for those who are disabled or under age 65.
And the new social security income cap for the elderly and disabled will hit some of those with a lower-than-average income.
The new law takes effect Dec. 1 and sets an income cap on earnings from Social Security benefits.
The cap will be based on a number of factors, including the number of years of service for disabled workers, as well as the percentage of earnings each worker has from Social Service, a program that provides assistance to the disabled and their families.
It will take effect on Jan. 1.
Here are the basics of how you can use Social Security to reach your dreams.1.
What to DoIf you are receiving Social Security payments from Social Services and are currently in the program, you may be eligible for a tax credit for some of the following types of income:• The value of income that exceeds the poverty line for a single person in the household, whichever is less.• The amount of income from self-employment, if the employer provides paid leave, overtime pay, or a combination of those benefits.• Amounts from a retirement savings plan, if one of the participants is receiving benefits from a plan for the retirement of that participant.• Income from a job that pays at least $1,000 a month.• Total compensation from an independent contractor, if that person is paid on an hourly or salary basis.• Additional income from a self-employed person, if income from that person exceeds $2,000.2.
How to Find Social Security Income1.
Check the Social Security Administration’s online online calculator, which shows the monthly amount that can be claimed on a return.
The calculator will give you the amount that you can claim on your tax return, based on your earnings.2