The Social Security Administration (SSA) may request reports of earnings and estimated earnings from beneficiaries during or after the close of a taxable year.
This article discusses the implications and consequences of failing to comply with these requests as per sections § 404.455 and § 404.456.
Section 1: Request for Report During the Taxable Year
(a) The SSA may request beneficiaries to estimate their earnings for the current and next taxable year, as well as furnish other information about their earnings. If a beneficiary fails to comply with the request, the following consequences may occur:
- It may be reasonably expected that deductions will be imposed on the beneficiary’s benefits under the provisions described in § 404.415.
- The SSA may use the preceding year’s estimated or reported earnings to suspend payment of benefits for the current or next taxable year.
Section 2: Request for Report After Close of Taxable Year
(b) The SSA may request a beneficiary to report their earnings for the closed taxable year, as well as provide any other information about their earnings. If the beneficiary fails to comply, the following consequences may occur:
- The beneficiary’s benefits may be subject to deductions as described in § 404.415 for each month of the taxable year or specific months specified by the SSA.
Example: Jane’s Earnings Report Request and Consequences of Non-compliance
Jane is a Social Security beneficiary who receives retirement benefits. In June 2023, the Social Security Administration (SSA) requests that she estimate her earnings for the current and next taxable year, as well as provide any other relevant information about her earnings.
Scenario 1: Jane Complies with the Request
Jane promptly submits the requested earnings estimates and additional information to the SSA. As a result, the SSA is able to accurately assess her eligibility for continued benefits and adjust her payments accordingly, ensuring she receives the correct amount of benefits without any interruptions.
Scenario 2: Jane Fails to Comply with the Request
If Jane fails to comply with the SSA’s request for her earnings estimates, there will be consequences:
- The SSA may reasonably expect that deductions will be imposed on Jane’s benefits under the provisions described in § 404.415, due to her non-compliance.
- The SSA may use Jane’s previous year’s earnings estimates or reported earnings to suspend her benefit payments for the current or next taxable year. This could result in Jane experiencing financial hardship due to the unexpected suspension of her benefits.
In summary, it is essential for Jane, as a Social Security beneficiary, to comply with the SSA’s request for earnings reports and estimations to avoid potential deductions or suspension of her benefits. By providing the required information, she can ensure her entitled benefits are received without interruption.
Conclusion: It is crucial for beneficiaries to comply with the SSA’s requests for earnings reports and estimations to avoid potential deductions or suspension of benefits. Being proactive in providing the necessary information can help ensure that beneficiaries receive their entitled benefits without interruption.
https://www.ssa.gov/OP_Home/cfr20/404/404-0455.htm
At Hugo Fierro & Michael Perez, we take great pride in our comprehensive understanding and proficiency in advising clients on the nuanced aspects of Social Security disability claims. Our dedicated team is thoroughly prepared to furnish valuable insights and support in navigating the intricacies of your individual case.