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The time of dreams
Beyond waiting as long as possible to age 70 to claim Social Security or claim spousal benefits to maximize payments, there is a simple step workers can take to get the benefits they worked for. : Check their income statements with the Social Security Administration.
Each year, your employer sends a copy of your salary and tax return, or W-2, to the administration. The income shown on these statements is used to determine whether you will receive benefits and, if so, the amount of those benefits.
If an employer doesn’t correctly report just one year of your earnings, it could cost you tens of thousands of dollars in benefits over your lifetime. Among other reasons, income may not appear on your record because your employer reported it using the wrong name or Social Security number; you were married, divorced or changed your name and did not report it to the administration; or because you worked with a social security number that did not belong to you.
You can view your social security statement, check your income, and get estimates of future benefits by creating a my social security account on the administration’s website. Check that your account shows the exact amount you have earned each year and the correct name and date of birth.
It is useful to check at least once a year, as you could lose your tax or income statements over time or an employer could shut down or move out, making it more difficult to identify proof of your income.
Normally, you cannot correct your earnings after three years, three months, and 15 days from the end of the tax year in which your wages were paid. However, you can correct your file after this period in certain circumstances. For more information on when you can correct your income statement, see the administration’s website.
“Check it out every year if you can, and at least every three years,” because in many cases it will be much more difficult to resolve outside of that window, says Audrey Blanke, financial planner at Baird in Milwaukee. She has been told several times in seminars and conversations with clients of errors discovered in income statements, she says.
If you spot an error in your income statement, try to collect proof of any missing or incorrect income, such as a W-2 form, tax return, or pay stub. If you are unable to retrieve these documents, try to remember the name of your employer, the dates you worked there and how much you earned. You may be able to correct your income record online, but you can also contact the Social Security Administration online or at 800-772-1213 to work on correcting your record.
Individual entrepreneurs and business owners need to ensure their payrolls are reported accurately, and those who divorce and change their names should carefully check for errors, says Stephen Tally, COO at Leo Wealth, a wealth management company based in Iselin, New Jersey. solidify.
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