#1 Reason: An Offset Could Affect Your Social Security Check
One potential reason why you received a smaller Social Security check this month could be an offset. An offset can minimize your Social Security check when someone to whom you owe an amount of money makes a claim against your benefits. Below you will notice a few examples of debts that could actually result in an unwanted offset:
- Defaulted student loans
- Unpaid alimony or child support obligations
- Back taxes
Note that the Social Security Administration regulations (SSA) protect the first $750 in the benefits you get. However, when the debt will be proved and clarified that it actually belongs to you, SSA will minimize your benefits each month by a certain amount of money until what you owe gets paid.
Once you get rid of an offset for debt—or you reach your normal retirement age (In the U.S., full retirement age is currently 66 years and two months for those born after 1955 and will gradually increase to 67 for those born after 1960.) if the decrease is due to early benefits—you’ll get your full benefit amount. For the moment, you have to deal with this unpleasant shortfall.
