Ever since SSA started offering Social Security accounts in 2012, the information and tools that people can access through their individual accounts have grown, making these accounts a very valuable resource for anyone who hopes to collect Social Security someday—in other words, everyone who works or is married to someone who works. And now that SSA is considering implementing certain anti-fraud strategies, it will be more important than ever for people to open and maintain their own Social Security account. This will enable them to verify their identity online and apply for benefits directly through the portal rather than waiting on hold for a telephone representative to take the application or traveling to a field office for an in-person appointment.
Under new anti-fraud measures, anyone applying for benefits or changing their direct-deposit information will need to do it through their Social Security account. If they are unable to do so, they would need to provide the necessary documentation in person at a field office. Now that most field offices are not taking walk-ins, this would require waiting on hold for a representative to make an appointment, and then traveling to the nearest field office to show the required documentation. I have to say that anyone who mistrusts the Internet for the purpose of verifying identity will just have to get over it. This is the way it’s done now, and it really should cut down on fraud compared to relying on human telephone representatives to verify identity.
This latest initiative reaffirms the fact that everyone needs to open a Social Security account at ssa.gov/myaccount.
Benefits of having a Social Security account
In addition to greater ease in verifying identity and applying for benefits, there are additional benefits to having an online Social Security account. By having an account clients can:
Download their latest statement. This, of course, is the first step in doing Savvy scenario planning for your client. They can either download a copy of their statement and send the PDF to you, or they can refer to their benefit estimate and give you the amount they are projected to receive if they file at their full retirement age. This is their PIA, which you will enter into the Savvy Software. The software will adjust for claiming age and COLAs based on the client’s projected filing date.
Use the Retirement Estimator. The benefit estimates shown on the statement presume continued earnings to claiming age. If a client plans to retire before claiming Social Security, the Retirement Estimator will allow them to see what their benefit would be if they were to stop working earlier. The Retirement Estimator taps into their existing earnings record, so all they have to do is enter projected earnings going forward (e.g., $0). Since this tool is accessible only through an individual’s Social Security account, you would not be able to run it for them, but you can help walk them through it. Be sure to have your clients enter a retirement date that corresponds to their FRA, otherwise the tool will assume they want to apply for benefits at 62 and the benefit estimate will incorporate the reduction for early claiming. The Savvy Software needs the FRA estimate and will make any adjustments for early claiming.
Check their earnings record. The statement shows annual earnings but it now batches earlier earnings by decade. By scrolling down to the bottom of the page on the Social Security online account, clients can access their complete year-by-year earnings. If there are any errors or discrepancies, they can contact SSA about correcting their earnings record. New earnings are reported each year, usually between March and October. It’s a good idea for clients to check in each year to make sure their newly reported earnings are correct. SSA gets this information directly from the W-2s that go to the IRS, so errors are rare. But if a client is self-employed, SSA uses net Schedule C income as reported on the client’s tax return. This is where errors sometimes occur, especially if a client gets an extension on their filing date.
Get a benefit verification letter. Clients who are already receiving Social Security can access their full benefit information via their account including the gross amount and any withholdings for Medicare or taxes. If they need to provide income verification for a loan application or other purpose, they can download their latest benefit verification letter showing all the information.
Get 1099s. For clients receiving benefits, each year’s SSA-1099 is posted on their Social Security account going back to 2019.
How to establish a Social Security account
SSA has adopted strict and effective cybersecurity measures for online Social Security accounts, so your clients need not worry about entering their personal information. Once they do it and the account is set up, interacting with SSA will be very easy as many functions such as address and direct-deposit changes can be done online. Once identity is verified, the account will tap into the information SSA has on file for them allowing people to see their personal earnings and benefit information and also update SSA’s records with any changes on their end.
Prior to 2021, setting up a Social Security account was simply a matter of establishing a username and password and answering a number of questions in an attempt to verify identity. SSA had teamed up with the credit reporting agencies to ask questions only clients would know the answer to, such as the street they lived on five years ago and to which bank they send their mortgage payments. This was not ideal, as clients often did not remember previous residences or otherwise were unable to answer the questions. Once the account was set up, clients would access it by entering their username and password—also not ideal because passwords can be stolen. Fraudsters could go in and change direct-deposit information and have their victims’ Social Security checks sent to them.
So SSA has switched to more effective identity verification methods paired with two-factor authentication for logging in. The two credentialing methods are Login.gov and ID.me. Anyone who has previously opened a Social Security account with a username and password can still access their account for the time being, but this login method will soon be retired, so everyone is encouraged to switch over to one of the other methods before that happens.
The main method for logging in is now Login.gov. Some clients may already have ID.me accounts for other government uses; if so, they can keep them and use them for their Social Security account. Anyone outside the U.S. would use ID.me. But most people will be starting from scratch with Login.gov, which is a U.S. government sign-in service that provides a simple, secure, and private way for the public to access government websites. Supported web browsers are Google Chrome, Microsoft Edge, and Apple Safari. Before starting, clients should make sure they have the latest version of their browser; if they have any technical difficulties signing up, clearing their cache and cookies may resolve the problem. Here are instructions for clearing cache and cookies for Chrome, Edge, and Safari.
Related: SSA Sign-In Process to Change Soon
To start, clients can refer to Login.gov instructions. They’ll need to enter their email address, wait for a verification link, and then create a username and create a strong password. In addition, they’ll need to set up a second layer of security such as face or touch unlock, an authentication application such as Google Authenticator or 1Password, or a physical security key. However, the easiest two-factor authentication method (which I use but which SSA says is not the most secure) is to simply have a code sent to your telephone via text message.
Once the Login.gov account is set up, SSA does require a photo ID to verify identity. Clients can simply take a picture of their driver’s license or passport and upload it to the site.
Most clients should have no trouble creating their Social Security account. It takes a little bit of time initially, but will save time in the long run and is very secure. Make this part of your checklist for all clients regardless of age.
Source: Horsesmouth, LLC
Horsesmouth, LLC is not affiliated with Lane Hipple or any of its affiliates.