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Miami Herald
14-07-2025
- Business
- Miami Herald
Social Security Payments Up to $5,108 Going Out This Week: What to Know
Millions of Americans are set to receive social security payments this week. The Social Security Administration (SSA) has published a document online containing the key dates that recipients should mark on their calendars. Some can expect to receive up to $5,108. Beneficiaries have been divided into three groups in order to stagger their benefits over three payment dates this month because of the sheer scale of distributing the money. The first group received their July funds when they were issued last week. The second group will be paid on Wednesday, while the third group will be paid on July 23. The SSA issues payouts each month to more than 70 million Americans. The funds include retirement payments, as well as disability and survivor benefits. Payments are sent out once a month in the form of a single lump sum for most recipients. But due to the high number of beneficiaries, not all payments are issued on the same day. Recipients whose birthday falls on the 1st to the 10th of any month were scheduled to receive their benefits on the second Wednesday of July, which means they were paid last week on July 9. Those whose birthday falls between the 11th to the 20th will be paid this week —on Wednesday, July 16. The remaining group of beneficiaries, whose birthday falls on the 21st through to the 31st, will be paid next week on July 23. In recent months, there have been concerns that the SSA could be affected by President Donald Trump's attempts to slash budgets across the federal government, with tech mogul Elon Musk, being drafted in to run a newly created Department of Government Efficiency (DOGE) until he stepped down in May. Former President Joe Biden accused the pair of "taking a hatchet" to the social security system, which the White House and the SSA denied. Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, previously told Newsweek: "From a customer service standpoint, it does appear the Social Security Administration is feeling pressure at the moment, as layoffs have meant more work to do for a smaller staff of employees. The distribution of benefits has yet to see any negative effects, but with other aspects of the administration falling behind, it's easy to see why there are concerns future payments could be Americans will tolerate missed payments or slower customer service for a program they paid into for decades." Social security beneficiaries should receive their payments on the dates outlined above. Anyone who does not receive their payment on the scheduled date should wait three working days before contacting the SSA, the agency says, noting that Saturdays, Sundays and public holidays do not count as working days. Related Articles Social Security Warning Issued as Agency Moves 1,000 StaffersNew Plan Proposed To Save Social SecuritySocial Security Update: Payout Shift Triggers Drop in Personal Income 2025 NEWSWEEK DIGITAL LLC.
USA Today
17-06-2025
- Business
- USA Today
An aggressive Social Security garnishment is underway. Here's how you can avoid it
An aggressive Social Security garnishment is underway. Here's how you can avoid it President Donald Trump's administration is aiming to claw back overpayments from Social Security beneficiaries. Show Caption Hide Caption Biden criticizes Trump administration's handling of Social Security Social Security overhaul sparks criticism from Biden over service disruptions, layoffs and automation as Trump defends changes as efficiency. Straight Arrow News In May, nearly 53 million retired workers brought home a Social Security check, with the average payout making history by cresting $2,000 for the first time ever. Though this is a relatively modest amount of monthly income, it's imperative to the financial well-being of most aging Americans. For more than 20 years, national survey-taker Gallup has polled retirees annually to gauge their reliance on Social Security income. Without fail, 80% to 90% of retirees have consistently responded that their monthly check was a necessity, in some capacity, to make ends meet. For beneficiaries, nothing is more important than knowing how much they're going to receive each month and having their payout keep pace with the inflationary pressures they're contending with on a year-to-year basis. But based on a new policy recently implemented under President Donald Trump, more than 1 million beneficiaries can expect their Social Security checks to shrink by up to 50%. With so many beneficiaries reliant on Social Security income to cover their expenses, this is income some can't afford to lose. The Trump administration aims to claw back Social Security overpayments Since Trump took office for his nonconsecutive second term, he's overseen a number of critical changes to America's leading retirement program. This includes beefing up personal identification methods, signing an executive order to eliminate paper Social Security checks, and creating the Department of Government Efficiency (DOGE), which encouraged the Social Security Administration (SSA) to slash 7,000 jobs and shutter some of its locations to reduce its administrative expenses. But what's making headlines above all else are the two Social Security garnishments that the Trump administration has improved. For instance, by "sometime this summer," a 15% monthly garnishment is expected to be reinstated for the roughly 452,000 delinquent federal student loan borrowers who are currently receiving a Social Security benefit. Federal student loan payments ceased in March 2020 during the height of the pandemic and haven't recommenced. Between 2017 and 2023, the number of federal student loan borrowers aged 62 and above surged by 59% to roughly 2.7 million, based on data from the Consumer Financial Protection Bureau. But a 15% monthly garnishment is peanuts compared to the 50% garnishment rate that's currently underway for beneficiaries who were overpaid. Keep in mind that "beneficiaries" encompass retired workers, survivors of deceased workers and workers with disabilities. Under the Joe Biden administration, Social Security clawbacks for overpayments were reduced to 10% per check, which is down from the 100% clawback rate that existed when President Barack Obama was in office, as well as during Donald Trump's first term. Based on statements from then-acting SSA Commissioner Kilolo Kijakazi in 2023, the agency overpaid more than 1 million beneficiaries in fiscal 2022 (the federal government's fiscal year ends on Sept. 30) and over 980,000 recipients in fiscal 2023. With the garnishment rate slashed to just 10% under President Biden and having no new overpayment data published since fiscal 2023, it's likely safe to assume that more than 1,000,000 beneficiaries are still making good on their overpayments. Beneficiaries may be able to legally avoid or reduce their Social Security garnishment Social Security overpayments can occur for a number of reasons. Sometimes, these errors are entirely the fault of the SSA and result in beneficiaries receiving too much per month. But they can also be caused by a recipient not updating their income. For example, non-blind workers with disabilities can earn up to $1,620 per month in wages and salary without having their long-term Social Security disability benefit stopped in 2025. If a worker with disabilities began collecting $3,000 in monthly income and didn't report this income change to the SSA, their federal tax filing would show they received Social Security disability benefits they weren't due, thusly resulting in an eventual clawback from the SSA. For the more than 1,000,000 beneficiaries who've received a letter from the SSA informing them they've been overpaid, there are options. The most desirable of these options is to request and be approved for an overpayment waiver (Form SSA-632BK, "Request for Waiver of Overpayment Recovery"). If the overpayment wasn't your fault and repaying the added benefits you received would lead to financial hardship — you'll often need to supply documentation of your income and qualified expenses — there's the possibility that the SSA will grant your request and waive your need to refund the overpayment. Along these same lines, beneficiaries can also file Form SSA-561, which is officially known as a "Request for Reconsideration." This route is taken by beneficiaries who don't agree with the SSA's decision that they've been overpaid and essentially want to appeal, as well as those who admit they've been overpaid but don't agree with the amount presented by the SSA. If your appeal is granted, you won't have to refund a dime to America's leading retirement program. Your appeal may also reduce how much you'll have to repay. The third option available to beneficiaries who've received a notice informing them of eventual clawbacks due to overpayment is to negotiate a different payment rate. Going this route is an admission that you've been overpaid but that removing 50% from your check on a monthly basis would create a financial hardship. Filing Form SSA-634 ("Request for Change in Overpayment Recovery Rate") with the SSA requires you to explain your financial situation, which includes documentation of your income and qualified expenses. Though the SSA typically aims to recover an overpayment within 12 months, some payment plans extend payments up to 60 months (five years) out. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $23,760 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
USA Today
08-06-2025
- Business
- USA Today
4 Social Security changes Washington could make to prevent benefit cuts
4 Social Security changes Washington could make to prevent benefit cuts Show Caption Hide Caption Biden criticizes Trump administration's handling of Social Security Social Security overhaul sparks criticism from Biden over service disruptions, layoffs and automation as Trump defends changes as efficiency. Straight Arrow News Social Security is an important source of income for millions of Americans, but the program has a serious financial problem. Costs have increased faster than revenues in recent years because the aging population is growing more quickly than the working population. As a result, the trust fund, the financial account that pays benefits, is on track to be depleted within a decade. Specifically, the Congressional Budget Office estimates the trust fund will be exhausted in 2034. That would eliminate one source of revenue (i.e., interest earned on trust fund reserves), and the remaining tax revenues would only cover 77% of scheduled payments. That means a 23% benefit cut would be necessary in 2035. Fortunately, the lawmakers in Washington have several years to find a better solution. Here are four Social Security changes that could prevent deep, across-the-board benefit cuts. 1. Apply the Social Security payroll tax to income above $400,000 Social Security is primarily funded by a dedicated payroll tax, which takes 6.2% of wages from workers and employers. But some income is exempt from the payroll tax. Specifically, the maximum taxable earnings limit is $176,100 in 2025. Income above that threshold is not taxed by Social Security. Importantly, the Social Security program is projected to run a $23 trillion deficit over the next 75 years as it's strained by shifting demographics. But the deficit could be slashed by applying the payroll tax to more income. For instance, including income above $400,000 would eliminate 60% of the 75-year funding shortfall, says the University of Maryland. 2. Gradually increase the Social Security payroll tax rate to 6.5% over six years Under current law, the Social Security payroll tax rate is 6.2% for workers and their employers. But gradually raising that figure would eliminate a portion of the long-term deficit. For example, increasing thetax rate by 0.05% annually over a six-year period would eliminate 15% of the 75-year funding shortfall, according to the University of Maryland. Now that I've discussed two possible changes, let's step back and look at the big picture. There are basically three ways to resolve Social Security's financial problems: (1) increase revenue, (2) reduce costs or (3) some combination of the first two options. The changes discussed so far would increase revenue, but the next two changes would cut benefits. However, they are more subtle cuts than the 23% across-the-board reduction that would follow trust fund depletion. 3. Gradually increase full retirement age to 68 by 2033 Workers are eligible for retirement benefits at age 62, but they are not entitled to their full benefit — also called the primary insurance amount (PIA) — until full retirement age (FRA). Anyone that claims before full retirement age receives a smaller payout, meaning they get less than 100% of their PIA. FRA is currently defined as 67 years old for workers born in 1960 or later, but raising the figure would reduce the long-term deficit. For instance, increasing FRA to 68 years old by 2033, meaning it would apply to workers born in 1965 or later, would eliminate 15% of the 75-year funding shortfall, according to the University of Maryland. 4. Reduce benefits for retired workers with income in the top 20% Social Security benefits are determined as percentages of two bend points. Specifically, income from the 35 highest-paid years of work is adjusted for inflation and converted to a monthly figure called the average indexed monthly earnings (AIME) amount. The AIME is then run through a formula that uses two bend points to determine the PIA for each worker. Modifying the second (highest) bend point would eliminate a portion of the long-term deficit by reducing benefits for high earners. For instance, the University of Maryland estimates that reducing benefits for individuals with income in the top 20% could reduce the 75-year funding deficit by 11%. Here's the big picture: The four changes I've discussed would eliminate 101% of Social Security's $23 trillion funding shortfall, which would prevent across-the-board benefit cuts in 2035. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $23,760 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
USA Today
16-05-2025
- Business
- USA Today
5 Social Security tasks you probably didn't know you could do online
5 Social Security tasks you probably didn't know you could do online Show Caption Hide Caption Biden criticizes Trump administration's handling of Social Security Social Security overhaul sparks criticism from Biden over service disruptions, layoffs and automation as Trump defends changes as efficiency. Straight Arrow News There have been a lot of Social Security changes so far in 2025, and that can leave you feeling pretty nervous if you depend on your checks to cover your basic expenses. Some of the changes have sent people flooding the Social Security Administration's phone lines. As a result, average call wait times are now around 90 minutes — and that's just to get someone on the phone. If you have to apply for benefits, you'll have to schedule an appointment and wait weeks for a spot. Then, you'll wait a few more weeks for application approval. That's probably not a headache you want to deal with. Fortunately, you can complete a lot of important Social Security tasks online, including the following five things. And best of all, you'll never find yourself on hold. 1. Apply for benefits The Social Security Administration enables you to apply for retirement and spousal benefits online. You can also apply for Social Security disability benefits through the online form and possibly Supplemental Security Income (SSI) benefits if you apply for these at the same time as your disability benefits. However, you cannot sign up for survivors benefits or SSI for low-income seniors without calling the Social Security Administration or visiting a field office. It's worth noting that you may not have to sign up for survivors benefits at all if you're already receiving spousal benefits on your partner's work record at the time of their death. The online application forms enable you to save your progress and return to them at a later date if need be. Once you've submitted your application, you can check its status online. You can also appeal a denial through the same system. 2. Get personalized benefit estimates Those who aren't already on Social Security can use the benefit estimator tool located in their my Social Security account to see what kind of checks they could qualify for at various claiming ages. You can do this for retirement benefits as well as for spousal benefits. However, to estimate your spousal benefit, you'll need to know your spouse's birth date and the benefit they qualify for at their full retirement age (FRA) — 67 for most of today's workers. They'll probably need to open a my Social Security account of their own to figure this out. The benefit estimator tool also lets you test out different future income projections so you can see how a raise might affect your benefits. All this information can be helpful when determining the best age to apply for checks. 3. Get proof you receive benefits — or proof you don't Loan applications often require proof of your income. Certain programs, like housing assistance, often do, too. If you're receiving Social Security checks, these count as a part of your monthly income. You can print a benefit verification letter through your my Social Security account. Or if you're not receiving checks yet, you can print a letter proving that you don't currently receive Social Security. 4. Update account information When you move, it's important to update your address with the Social Security Administration to ensure it sends all future communications to the right place. You can quickly do this through your my Social Security account. You can also update your direct deposit information here. This used to take up to 30 days to process. But the Social Security Administration has recently changed the rule so these changes will now only take one business day. The option to change your direct deposit information this way is only available to beneficiaries residing in the U.S., though. If you live in another country, you will need to contact the Social Security Administration directly to make that change. 5. Identify someone to manage your benefits for you If you're worried that illness might leave you unable to manage your benefits on your own, you can designate a trusted person to take over that responsibility in your my Social Security account. This won't give the person the authority to take charge of your benefits right away. The Social Security Administration will only contact the person if you become unable to manage your benefits on your own. And you're free to change the person you want to manage your benefits for you at any time. If you're not comfortable making these changes online, you still have the option to call the Social Security Administration or make an in-person appointment at a field office. Just be prepared to wait a little longer if you go this route. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $ 22,924 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
Axios
04-05-2025
- Politics
- Axios
Trump's total government deportation push
The Trump administration is tapping multiple agencies for a whole-of-government campaign to achieve its goal of deporting millions. Why it matters: Controversial tactics — ensnaring even legal U.S. residents and citizens — have raised alarm and triggered court battles over executive power. Zoom in: The administration's playbook pulls several levers within the government beyond the Department of Homeland Security (DHS), which oversees Immigration and Customs Enforcement (ICE). Internal Revenue Service The Internal Revenue Service (IRS) reached an agreement with DHS to share the tax information of undocumented immigrants with authorities. "DHS can legally request return information relating to individuals under criminal investigation, and the IRS must provide it," per the agreement. Sharing the information could speed up immigration enforcement but may push undocumented immigrants to avoid paying taxes and turn to the informal economy. Department of Justice The DOJ is engaged in a number of headline-grabbing lawsuits over deportations. After admitting Kilmar Armando Abrego Garcia was erroneously deported, the DOJ is still pursuing the case to keep him in El Salvador. The administration invoked the Aliens Enemies Act to deport alleged Venezuelan gang members to El Salvador, defying a federal judge's court order. A federal judge Thursday ruled it unlawful. Mahmoud Khalil, a legal U.S. resident and a leader of Columbia's pro-Palestinian protests, is in ICE custody as the DOJ builds its deportation case against him. Social Security Social Security is also now an immigration enforcement tool. Hundreds of thousands of immigrants in the U.S. with "temporary parole" status — granted through various Biden-era programs — have received Social Security numbers to work. The Department of Homeland Security identified more than 6,300 of them who are on the FBI terrorist watch list, or with FBI criminal records, an official told Axios. Department of Housing and Urban Development HUD Secretary Scott Turner said last month that federal housing assistance will no longer be granted to undocumented immigrants or to " sanctuary cities" The department partnered with DHS to help identify undocumented immigrants living in publicly subsidized housing. Department of Transportation Transportation Secretary Sean Duffy said Wednesday that cities and states that give undocumented immigrants driver's licenses and those that are "sanctuary cities" will not receive federal funding. U.S. Postal Service The U.S. Postal Inspection Service, the USPS' law enforcement arm, has quietly started to cooperate with federal immigration officials in order to find undocumented immigrants, the Washington Post reported this week.
