Michigan Social Security Information
- Michigan residents are eligible for Social Security retirement benefits if they have paid Social Security taxes and accumulated 40 work credits when they were employed. To earn work credits, you have to make more than $1,120 during the year. Once you have made $4,480, you earn four work credits, the maximum annual amount allowed as of 2011. The Social Security Administration determines your benefits amounts based on 35 years of earnings. Your benefits are affected if you have years of little to no income; those are averaged in. Your retirement benefits are paid to you the month after they are due. You receive your entitled benefit amount when you reach retirement age. As of 2011, it is 66 if you're born after 1943 and 67 after 1960. However, you can begin receiving retirement benefits at age 62 and as late as 70.
- Michigan residents who have long-term injuries, impairments or illnesses may be eligible to receive Social Security disability benefits. To qualify, your medical condition must last longer than 12 months and prevent you from doing your current work. The Social Security Administration has a list of impairments that are qualifying medical conditions for disability benefits. If your disability isn't on the list, you have to see a medical provider to certify the severity of your condition. Other requirements include having paid Social Security taxes and accumulating up to 40 work credits. Unlike the retirement program, you can qualify with fewer than 40 work credits if you are disabled at a younger age. For example, you need only six credits to receive disability benefits if you're 24 or younger.
- If you die, the Social Security Administration distributes Survivors benefits to your family. Your spouse, ex-spouse and dependent children are entitled to Survivors payments if you earned 40 work credits. However, you can qualify with less if you died before reaching 40 credits. Your earnings determine how much of your benefit your family is entitled to in Survivors benefits, but their ages determine the size of their checks. For example, your spouse and ex-spouse receive 100 percent of the full benefit rate if the spouse is at full retirement age. The Survivors program retirement age is different than the Retirement program; it is 66 if you're born after 1945 and 67 after 1962. Your spouse receives 71.5 percent if he is between 60 and full retirement age, and 75 percent at any age if he's taking care of your children, who are under 16.
- Michigan beneficiaries who have taxable incomes such as work earnings pay taxes on their Social Security payments. If you have an annual income above $25,000, 50 percent of your Social Security benefits are taxed at normal income tax rates, and up to 85 percent is taxed if your income exceeds $34,000. If you're married, 50 percent of your Social Security benefits are taxed if your household income tops $32,000, and 85 percent is subject to taxation if your income surpasses $44,000.
