Question: I currently receive my Social Security check by mail. I have received a letter telling me about the debit card Social Security is making available in place of a monthly check mailed to me. I do not want the debit card. I have decided to open a checking account and use direct deposit for my Social Security check. Is it possible in Austin to get a checking account at a financial institution such as a bank or credit union that does not charge any fees?

Answer: Yes. Select a bank or credit union that is convenient for you. It could be in a grocery store where you normally shop. Before you open the account ask the employee for a “free” checking account. An account that charges you no monthly fee, you do not have to maintain a minimum balance in the account, the bank furnishes you free checks, and there is no limit on the number of checks you write or withdrawals you make each month. Also, ask if you receive a statement each month or if there is a charge to check your account balance during the month. Let the bank help you arrange for direct deposit of your check. They will need your Social Security claim number and your Social Security number when you open the account. It may take too months to make the change. Your check will be deposited in the bank on the same day you received it by mail.

Question: My husband died last month. I have never worked and paid Social Security taxes. I have been receiving Social Security as his wife. I am past 67 years old. Are there any additional benefits for me?

Answer: Yes. You will be entitled to a surviving spouse’s benefit (widow’s benefit). Call 1-800-772-1213 to report your husband’s death. Be sure you have his Social Security number by the phone when you call. As of the month of his death your monthly check will be increased to a widow’s benefit; and you will receive the lump sum payment of $255. Do not wait to receive the death certificate before you call. Also, notify the bank when his check was deposited of his death. The Social Security check for the month of his death must be returned. If his check is not returned then your check will be adjusted for any overpayment.

Question: I have just started to work and was told Social Security taxes would be deducted from my paycheck. I have looked at my pay stub and it does not list a Social Security tax deduction. It does, however, have an FICA deduction. What does FICA stand for? Is this the Social Security tax?

Answer: Yes. The FICA deduction on your pay stub is the Social Security tax deduction. FICA stands for Federal Insurance Contribution Act, which refers to the Act passed by Congress in 1935 that established Social Security. The current tax deduction on total wages up to $102,000 in 2008 is 6.2% for Social Security and 1.45% on all wages (no limit) for Medicare Hospital fund – a total of 7.65% your employees matches this amount.

Question: When I reach age 65 this year is it possible for me to apply for Medicare Part A and B coverage? I have never paid Social Security taxes and am not entitled to any Social Security benefits on another worker’s account.

Answer: Yes. You can enroll in both Medicare Part A Hospital; and Medicare Part B; also the Prescription Drug Program Part D at age 65. Since you will not be entitled to premium free hospital insurance (Part A) your monthly premium for the hospital insurance in 2008 is $423 a month. Anyone, regardless of whether they have Social Security can enroll in Part B Medical insurance at age 65 and normally pay the base premium which is $96.40 a month in 2008. People with higher incomes now pay a higher Part B premium. You will be billed for the Premium you owe. Contact Social Security 2 months before you are 65 to file for Medicare Part A and B and discuss Part D the drug program. The Austin Social Security office is located at 1029 Camino La Costa, TX 78752.
Premiums are subject to change every year.

Question: I have a summer job at a restaurant where I will receive tips. My employer told me I will have to pay Social Security taxes on the tips I receive. Is this correct?

Answer: Yes. If you work at a job where you make $20.00 or more per month in tips, the income is covered by Social Security. This means you and your employer are required to pay Social Security and Medicare taxes on the income. When you earn tips you must keep a daily record pf the tips you receive. This includes tips received in cash directly from customers or from other employees and tips added to a credit card charge. If your tip income totals$20 or more in a month you are required to report the amount to your employer. Your employer is responsible for reporting the correct tip and wage information to Social Security and Internal Revenue Service (IRS).