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Experts at Maximize My Social Security have answered more than 10,000 questions about Social Security over many years. Search for your questions and answers here.
Why Do We Need To Report Pensions To Social Security?
This year's Social Security Benefit letter indicates that if we receive pension for work in which we did not pay Social Security taxes, we have to let the know.
Pension does not have to pay Social Security tax, why we have to report to them?
Hi. Pensions based on a person's earnings that were exempt from Social Security taxes can cause a person's Social Security benefit rate to be reduced. That's due to the Windfall Elimination Provision (WEP), and the Government Pension Offset (GPO) provision. For more information on these provisions, refer to the following publications: https://www.ssa.gov/pubs/EN-05-10045.pdf & https://www.ssa.gov/pubs/EN-05-10007.pdf.
The only type of pensions that Social Security need to know about are pensions based on your own earnings that weren't subject to Social Security taxes. If you always paid Social Security taxes on your earnings, then any pension you receive isn't likely to affect your Social Security benefits.
Best, Jerry
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Posted:
January 3, 2022