I was recently approved for Social Security Disability. The SSA earning print-out I had received when I applied showed zero earnings for 2005. I was sure that I was employed that year, so I wrote to the IRS for a tax return transcript, but they had no data because this was over 30 years ago. I did not pursue the matter further. Yesterday, I cleaned out my files and located my paper Federal and State tax returns for 2005 along with the W-2 for that employer. The W-2 was professionally printed and showed withholding for Social Security, Medicare, Federal taxes and State taxes. I got my tax refund that year and was not notified of any problem. I Googled the employer name and found a few news stories indicating that the CEO was arrested for pocketing federal tax withholding in 2009. There is no mention of a violation in 2005 or of Social Security taxes, but it is reasonable to conclude that the employer stole my Social Security withholding.

I worked for crooked employer in 2005 only and had no other employers in 2005.

How can I get Social Security Admin to recalculate my benefit amount -- retroactively? Is it too late? I didn't catch this years ago and my benefit amount was already calculated and is being paid out. Again, I have documents, but no IRS transcript.

Thanks.

Hi,

Yes, Social Security should recalculate your benefit to include the missing earnings. A W-2 form is considered primary evidence of wages (https://secure.ssa.gov/apps10/poms.nsf/lnx/0301403010), and you can be credited with the earnings even if your employer failed to properly report them. If your disability claim was awarded within the past 4 years, there should be no issue with the recalculation being done retroactively. Determinations can be reopened for up to 4 years if new and material evidence is discovered (https://secure.ssa.gov/apps10/poms.nsf/lnx/0204010030), such as the W-2 form you found.

Ideally, you should take your copy of the W-2 form to a Social Security office in person, and make a formal request for a recalculation of your benefit amount. This could alternatively be accomplished by mail or fax, but I would recommend a personal visit if at all possible.

Keep in mind that your disability benefit is calculated based on a variable number of inflation adjusted earnings years, which depends on your age at the time you became disabled. The missing earnings will only increase your disability benefit if they are high enough to replace one of the years previously used in computing your benefit amount.

Best, Jerry