Social Security Flashcards
Created to provide for United States citizens general welfare who are 65 years of age and older. Enabled individual states to make more adequate provisions for furnishing financial assistance to the aged, blind, dependent and crippled children, maternal and child welfare, public health, and to establish more adequate provisions for the administration of their unemployment compensation laws, to establish a Social Security Board, to raise revenue and provide a basic floor of protection to all working Americans against the financial problems brought on by death, disability, and aging.
Social Security Act of 1935
Period following the death of a family breadwinner, during which no Social Security benefits are available to the surviving spouse.
Blackout Period
Determining factors between being classified as fully insured or currently ensured.
Once a person is fully insured, death benefits are extended to their family (survivorship benefits)
4 quarters in each year, 40 is fully ensured
Social Security Credits
In regards to Social Security, status of limited eligibility that provides only death benefits.
Currently insured
When Social Security uses both medical disability criteria and non-medical criteria to determine whether you qualify for Social Security disability (SSDI, the program based on work credits) or Supplemental Security Income (SSI, the low-income program)
Disability Benefit Qualifications
Taxes used to fund the Social Security program. If they are not contributing, they are not eligible for benefits
FICA Taxes (Federal Income Contributions Act)
Status of complete eligibility for the full range of Social Security benefits; death benefits, retirement benefits, disability benefits, and Medicare benefits.
= 40 quarters
Fully Insured
An individual has paid FICA contributions for at least 40 quarters (not required to be consecutive)
Fully and Permanently Insured
Commonly referred to as Social Security.
Old Age, Survivor, and Disability Insurance (OASDI)
Benefit (before rounding down to the next lower whole dollar) a person would receive if they elects to begin receiving retirement benefits at the normal retirement age.
Primary Insurance Account
Basic unit for determine whether a worker is insured under the Social Security program.
Quarter of Coverage
These benefits are only available to covered workers who are fully insured upon retirement, and these benefits are paid monthly.
Normal age = 100%
Early retirement = 80%
Retirement Benefits
Social Security benefits are subject to federal income tax if the beneficiary files an individual tax return and their annual income is greater than $25,000. Joint filers will pay federal income tax on Social Security benefits if their income is greater than $32,000
Taxation of Social Security Benefits
