This is the time of year when recipients of Social Security will receive an annual benefit statement from the Social Security Administration. This year’s benefit statement will show a 1.6% cost of living increase.
Do not throw this statement away! This document is very important should you need to apply for government benefits (i.e., Medicaid, Veterans Benefits, etc.) in the coming year. Acquiring a copy of this statement can be difficult, especially if the Social Security recipient no longer has capacity to request a new copy.
Below is an example of a benefit statement:
Be careful not to confuse the benefit statement with the 1099 from Social Security. The 1099 is necessary for filing tax returns. However, a 1099 shows benefits paid from the previous year. When applying for government benefits, you must provide proof of your current income.