US Social Security💡Basic plus extra and up-to-date information & Lots of URL included💡

I made Youtube video regarding US Social Security.
Here is the video and and all information follow after.

If you have even a rough idea of how much you’ve paid, how to apply, when you can start receiving benefits, and how much you’ll get—your worries may ease a little.

what exactly is Social Security?
1. how much are we actually paying into Social Security?
Medicare Tax
the One Big Beautiful Bill Act (OBBBA)
1. What about State Income Tax?
  1. A quick note about 401(k) plans
When can you start withdrawing your 401(k)?
1. How and when to apply for Social Security benefits?
2. Move abroad and receive Social Security in another country
About Medicare

what exactly is Social Security?

It’s a federally run program managed by the Social Security Administration.

It covers retirement benefits, survivors’ benefits, and disability insurance.

how much are we actually paying into Social Security?

If you’re employed, 6.2% of your salary is automatically deducted.

Your employer also contributes an equal 6.2%, bringing the total to 12.4% in contributions.

If you’re self-employed, you pay the full 12.4% yourself.

Medicare Tax

In addition to Social Security, you’re also paying Medicare tax from your paycheck.

This tax funds health insurance for people age 65 and older, those with disabilities, and individuals meeting specific criteria.

And one day, you too may benefit from this coverage.

how much are we actually paying into Medicare?

The Medicare tax is 1.45% of your salary. Employers match this 1.45%—so together, 2.9% goes toward Medicare.

Self-employed individuals pay the full 2.9% themselves.

So altogether, including Social Security and Medicare, each person contributes 15.3%.

How many years do you need to keep paying?

To qualify for Social Security benefits, you’ll need to accumulate 40 credits.

You can earn up to four credits per year, and the income required to earn one credit varies from year to year.

URL: https://www.ssa.gov/oact/cola/QC.html

For example, in 2024, earning $1,730 will get you one credit.
So, if you’ve worked for around 10 years, you’ll likely have the 40 credits you need.

Don’t worry if you have gaps in your employment history—what matters is that you reach a total of 40 credits over time.

How much will you receive?

The amount you receive depends on two key factors:

Your years of work, and
Your income history

Social Security calculates your benefit using the average of your highest 35 years of earnings.

If you’ve worked more than 35 years, only your top earning years are counted.
If you’ve worked less than 35 years, the missing years are counted as zero.

(We’ll cover the exact calculation in detail later.)

When can you start receiving payments?

As of now, people born in 1960 or later can begin receiving full benefits at age 67.

However, you can start collecting as early as age 62—but your monthly payments will be reduced.

That reduced amount becomes your lifetime benefit, though it’s adjusted annually to keep up with inflation.

One small detail: If your birthday falls on the first day of the month, it’s considered the previous month for benefits calculation purposes.

Key Notes:

The primary recipient’s benefit increases by approximately 8% per year after age 67, up to age 70.
The spousal benefit caps at 50% of the primary’s full retirement benefit (not the increased delayed amount).
If the spouse begins collecting at age 62, the amount is reduced (to around 32.5%).
If the spouse’s own benefit is greater than the spousal benefit, they will receive the higher amount.
Both benefits are adjusted annually for inflation (Cost of Living Adjustments, or COLA).

What if you want full benefits but can’t work until age 67 due to health reasons?

You may be eligible to apply for Social Security Disability Benefits before you reach retirement age.
To qualify, you’ll need a minimum number of work credits, depending on your age at the time of disability:

Under 24: You must have earned 6 credits during the 3 years prior to your disability.
Age 24–31: You need credits equivalent to working half the time between age 21 and your disability onset.
Age 31 and over: You must have earned at least 20 credits in the 10 years just before your disability began.

Disability Criteria To qualify medically

You must be unable to perform substantial gainful activity (SGA) due to your condition.
You must be unable to do your previous job or adjust to a new one.
Your condition must last (or be expected to last) at least one year, or be expected to result in death.

For full details, check the official SSA site.
https://www.ssa.gov/benefits/disability/qualify.html

Once you reach retirement age (67), disability benefits automatically convert into retirement benefits of the same amount.

Can you undo a claim if you change your mind?

Yes—you can withdraw your application within one year after you start receiving benefits.

You’ll need to repay all the money received, and the SSA will treat your claim as if it never happened.

This allows you to delay your retirement again and potentially receive a higher benefit when you reapply later.

How much can a spouse receive?

Spouses may be eligible to receive up to 50% of their partner’s Social Security benefit.

But here’s the catch:

A spouse cannot begin collecting these spousal benefits before the partner has started receiving their own Social Security payments.

Once the partner begins receiving benefits, then the spouse—

if age 62 or older—may begin claiming spousal benefits.
Alternatively, a spouse of any age can claim benefits if they’re caring for a child who is under age 16 or disabled.

Use this tables to estimate the exact amount based on age at the time of claim.

For example, if you begin benefits at age 62, you’d get around 70% of your full retirement amount.
A spousal benefit would then be 32.5% of your partner’s full retirement amount.

if your own Social Security benefit is higher than the spousal benefit, you’ll receive the larger amount.

What if you’re divorced?

You can receive up to 50% of your ex-spouse’s Social Security benefit—if you meet all of these conditions:

You’re 62 or older
You’re not remarried
Your ex-spouse has already started receiving Social Security retirement or disability benefits
You were married to your ex for at least 10 years, and have been divorced for at least 2 years
Your own retirement or disability benefit is less than half of your ex-spouse’s

Good news: applying for this doesn’t notify your ex, and you can do it online.

You’ll need some basic details—like their Social Security number and their parents’ names—for verification.

What if your spouse has passed away?

Survivors may still qualify for Social Security benefits. You may be eligible if you’re:

A widow(er) aged 60 or older, or 50+ if disabled
A divorced spouse under similar age conditions—if the marriage lasted 10+ years and you haven’t remarried
Raising the deceased’s child under age 16 or a disabled child
A child under 18 (or 19 if in full-time school) who is unmarried
A disabled child over 18, who became disabled before age 22A stepchild, adopted child, grandchild, or step-grandchild
A parent age 62 or older who was supported mainly by the deceased

Note: survivor benefits are reduced, not full.

Example: a widow may begin receiving reduced benefits at age 62, and later switch to her own full retirement benefit at age 67—if it’s the higher amount.

How much will you receive each month?

The easiest way is to log in to your my Social Security account on the official SSA website. From there, you can see a personalized estimate of your retirement benefit.

https://www.ssa.gov/myaccount

If you don’t have an account yet, you can create one on the same page using:

Your Social Security number
A U.S. mailing address
A valid email address

There’s also a retirement calculator tool on the SSA site.

You can enter your birth date, estimated future earnings, and expected retirement age to see projected monthly benefits.

https://www.ssa.gov/oact/quickcalc/index.html

Want to understand the formula behind it?

Here’s a simplified version of how the monthly benefit is calculated at full retirement age (67):

Social Security uses your Average Indexed Monthly Earnings (AIME), based on your highest 35 years of earnings, adjusted for inflation.

(You can find this table at Wikipedia: https://en.wikipedia.org/wiki/Average_Indexed_Monthly_Earnings)

Let’s break it down:

Calculate Indexed Annual Earnings For each year you worked, multiply your actual earnings by an index factor to adjust for wage inflation.

Example:

If you earned $3,000 in 1961, and the index factor is 16.3, your inflation-adjusted income becomes $48,905.

Find AIME Add up your indexed earnings from your top 35 years. Divide that sum by 420 months (35 years) to get your average monthly earnings.

Apply the Benefit Formula For someone turning 67 in 2025, the formula is:

Example: If your AIME is $4,000:

90% of the first $1,226 = $1,103.40
32% of the next $2,774 = $887.68
Total monthly benefit = $1,991.08

https://www.ssa.gov/OACT/COLA/bendpoints.html

Keep in mind: everyone’s numbers and scenarios differ. But knowing the structure behind it helps demystify the process and gives you a clearer picture.
You don’t need to do all this math yourself. The SSA site will calculate it for you automatically.

Is Social Security taxable?

As you may know, there are both federal and state income taxes. Federal income tax applies no matter which state you live in.

You may owe federal tax only if you have other substantial income in addition to your Social Security benefits.

This includes wages, self-employment income, interest, dividends, and other taxable income reported on your tax return—including traditional 401(k) withdrawals.

Combined income

Here’s how it’s calculated:

Combined income = All income (including tax-exempt interest) + ½ of your Social Security benefits

If you’re:

Single and have over $25,000 in combined income
Married filing jointly with over $32,000 in combined income

… then up to 85% of your Social Security benefits may be taxable.

the One Big Beautiful Bill Act (OBBBA)

Latest Update (as of July 4, 2025) A new program called the One Big Beautiful Bill Act (OBBBA) went into effect, offering generous tax relief:

Taxpayers aged 65+ can receive an additional $6,000 tax deduction

If your income is below:

$75,000 (individual)
$150,000 (couples)

… then your Social Security benefits are tax-free

However, this deduction phases out:

Over $75,000 (individual) and $150,000 (couples)

It completely disappears at $175,000 and $250,000, respectively

Unfortunately, this is a temporary relief, valid from 2025 to 2028. Let’s hope it gets extended!

What about State Income Tax?

Here’s some good news: Social Security benefits are not taxed in 41 states, plus Washington D.C.

Only 9 states still tax Social Security benefits.

But they generally apply higher income thresholds—so many people remain exempt.

The number of states taxing Social Security has gone down:
In 2016, there were 13 states. Now, just 9 remain. By the time you retire, there might be even fewer!

A quick note about 401(k) plans

With traditional 401(k)s, you don’t pay taxes when contributing—but you do when withdrawing.

However, in some states, even those withdrawals are not taxed.

States with no income tax → 401(k) withdrawals are tax-free

Some states with income tax offer retirement income exemptions, so 401(k) withdrawals may still be non-taxable.

Remember: This applies to state tax only. Traditional 401(k) withdrawals are always subject to federal tax in the year you take the money out.

When can you start withdrawing your 401(k)?

After age 59½, you can withdraw without penalties
After 72½, you’re required to start minimum distributions, or face penalties
Traditional 401(k) withdrawals count as income, and are subject to:
Federal tax, and
State tax, unless you live in a tax-exempt state mentioned earlier

How and when to apply for Social Security benefits?

You should apply about 4 months before you want your benefits to start.

Apply online at the SSA website (link in the description)
Or you can contact or visit your local Social Security office

https://www.ssa.gov/benefits/retirement

Move abroad and receive Social Security in another country

If you plan to move abroad and receive Social Security in another country, you can check the local SSA office contact info on the SSA site.

https://www.ssa.gov/foreign/foreign.htm

About Medicare

Medicare is a health insurance program for those 65 and older.

If you’re not yet receiving Social Security benefits, sign up for Medicare starting 3 months before your 65th birthday.
If you are receiving benefits already, you’ll be automatically notified about enrolling in Medicare when the time comes.

Social Security is a case-by-case system, and everyone’s situation is different.
But I hope this overview helped you feel more confident and less worried by giving you a solid foundation of what to expect.

Thank you!