Payroll taxes not needed for immediate benefit payment remain in the Social Security trust funds.

Social Security is not only a retirement and disability insurance program. Social Security protects the dependents and survivors of retired, disabled or deceased workers. The FICA payroll taxes paid by workers who do not live to retirement age or who do not recover their own contributions make possible Social Security's wide range of family benefits.

Almost four million young or disabled adult children receive monthly benefits as dependents of retired, disabled or deceased workers. Nearly three million retirement-age spouses and five million widows who have not earned their own benefit receive a check based on the working spouse's earnings. Numerous wives and widows and some husbands and widowers who have earned their own benefit receive partial spouse and survivor benefits because their own benefit is less than the benefit they are entitled to receive as a spouse or surviving spouse. In addition, approximately 220,000 dependent parents of deceased workers receive Social Security retirement benefits.

Other than a benefit to a care-giving parent of a young dependent child or a disabled adult child entitled to benefits, Social Security does not provide a caregiver benefit.

A surviving disabled adult child is entitled to receive a benefit equal to 75 percent of the wage earner's Primary Insurance Amount (PIA). A PIA is the monthly benefit a wage earner receives if he or she begins Social Security retirement benefits in the month full retirement age is reached. If you retired earlier or later, call the Social Security Administration at 1-800-772-1213 and ask for your Primary Insurance Amount. That will enable you to determine how much your daughter will receive on your son's behalf when she becomes his guardian.

Your uncle's wife is not receiving a Social Security spouse benefit because Congress in 1983 enacted legislation restricting benefits to foreign nationals. Unless a husband and wife have lived together within the United States for five years, a foreign national spouse living outside the United States is ineligible for a Social Security spouse benefit. If she were eligible for Social Security, she would be eligible for Medicare, but Medicare does not pay for care outside the United States.

If your uncle's wife resided in the United States, she would be eligible for both Social Security and Medicare.

Free Social Security earnings credits are provided for any veteran who served from 1939 through 1956 if military service credits increase monthly checks. When a claim is filed, it is normal practice for the Social Security Administration to ask about military service and, if applicable, request a copy of the veteran's discharge certificate. If you are unsure if you provided a copy of your discharge certificate when you applied for benefits, call the Social Security Administration at 1-800-772-1213 and ask. If necessary, the tele-service representative will make an appointment for you at your local office.

Generally, military service credits for years before 1951 do not increase a claimant's monthly check. If pre-1951 credits are used, an older, lower benefit formula also must be used. Changes in law enacted in 1950, effective in 1951, provided a new, more generous formula than the computation method enacted in 1939.

Social Security has always been accounted for separately. The National Committee and other advocates were successful in gaining approval of legislation removing Social Security trust funds from the general revenue account over ten years ago. That, however, did not stop the Congress from considering annual Social Security surpluses when attempting to hide general revenue deficits.

Social Security Trust Fund reserves are invested in special issue, interest-bearing, U. S. Treasury bonds. Both the principal and interest are credited to the Trust Funds. Once loaned to the government, they can be used for any authorized government purpose. There is nothing inherently wrong with this system. U. S. Government bonds are considered one of the safest forms of investment.

Social Security IOUs have not been paid back because, thus far, those funds have not been needed. FICA tax contributions of current workers are more than sufficient to pay benefits to current retirees. That is why the reserves are expected to continue rising for another 19 years. Reasonable, small changes can be made in Social Security to keep the system sound throughout the 21st century.

Annual Social Security cost-of-living adjustments are based on the full Social Security monthly entitlement before the Medicare premium is withheld.

Social Security monthly benefits are based on average earnings over the number of years of work the law requires the Social Security Administration to count. Before they are averaged, old earnings are indexed to bring them up to date. Indexing increases the dollar value for averaging purposes. Workers born in 1929 or later receive benefits based on their 35 highest indexed earning years. Workers born earlier require fewer years of earnings in determining the benefit amount. For example, if you were born in 1925, your monthly Benefit is based on your 31 years of highest earnings.

Once the monthly benefit amount is determined, monthly benefits increase due to new earnings only if a year of new earnings exceeds one of the years of earnings used in determining the initial benefit. An automatic recomputation takes place each year when new earnings are credited to a retiree's earnings record. If a year of new earnings exceeds a year of earnings used in determining the initial benefit, benefits are increased. The increase generally takes place in November, but the benefit increase is retroactive to the previous January.

You may obtain a print-out of your actual and indexed earnings by calling the Social Security Administration at 1-800-772-1213 and requesting one. Then you will know whether a year of new earnings should result in an increase in your monthly benefit.

Social Security payroll taxes are imposed only on earnings-never on other sources of income.

Eligibility for a monthly Social Security benefit and premium-free Medicare Hospital Insurance requires 40 calendar quarters (ten years) of Social Security work credits. If I understand your email correctly (here edited), the Social Security Administration advised you that you have 33 credits. It is possible that is incomplete. Unless you have already applied for a benefit and submitted a certified copy of your DD214 military discharge certificate, your four years of Korean War service are not yet credited to your earnings record.

Members of the Armed Forces began paying FICA taxes in 1957. Anyone who served in the military from 1939 through 1956, however, is entitled to free Social Security work credits for service during those years if adding those credits would allow benefits to be paid or would increase the benefit payable.

With the removal of the Social Security earnings limitation applicable to persons over full retirement age, you may already have sufficient work credits and could begin receiving benefits immediately without regard to your current earnings. Apply at the U. S. Consul or Embassy nearest to your residence in Japan.

While you continue working in Japan, you will receive a monthly benefit determined by the basic Social Security computation method. Once you begin receiving an annuity from work that was not subject to Social Security, your Social Security benefit must be redetermined under the Windfall Elimination provision. Windfall Elimination provides a reduced benefit. For specific information about this provision and how it will affect your Social Security benefit, go online to the Social Security Administration at http://www.ssa.gov/. Click on publications and select the issue brief entitled A Pension From Work Not Covered By Social Security.

Social Security is an insurance program covering workers and their dependents. Had your sister earned Social Security work credits equal to one-fourth of the years between age 21 and the year of her death, she would have been insured. Her husband would have received a $255 lump sum death benefit and her children would have been eligible for cash benefits through age 18-through age 19 if still in high school. With as little as one year of work in the paid labor force, your sister was not insured for benefits.

As of September 30, 2000, over 45,300,000 individuals were receiving monthly Social Security benefits. For specific information go on line to the web site of the Chief Actuary of Social Security. The address is http://www.ssa.gov.oact/.

Click on Beneficiary Data and then access Data Bases. You will find a count and breakdown of the various categories of beneficiaries.

If your father-in-law and his fiancée choose to marry, there will be no change whatsoever in either of their Social Security benefits.

Marriage or remarriage never affects a worker's own Social Security benefit. Marriage after age 60 (50 if disabled) never affects a widow or widower's right to a survivor benefit based on a prior marriage.

It is not true. Children fathered by U. S. citizen men, but born outside of marriage, must be legitimized before being eligible for benefits. Even if legitimized, dependent children are entitled to benefits only upon the retirement, death or disability of the parent.

Foreign national spouses or adopted children living outside the United States are ineligible for Social Security benefits unless they have lived in the United States for at least five years in the status that accords them the benefit. Foreign nationals living within the United States must present proof of legal residence before benefits are payable.

Contact the Social Security Administration at 1-800-772-1213 or visit your local Social Security office. A Social Security representative can tell you whether you are eligible to receive a non-work Social Security account number or what documentation you must present to be issued a number.

Can you tell me if I will have to pay taxes on what I earned plus what I received from Social Security or just on my total earnings from my job?

For specific information about taxation of Social Security or other retirement benefits, call the Internal Revenue Service at 1-800-829-3676 and request a copy of Publication 17, Tax Guide for Individuals. If you prefer, you can download the publication from the IRS web site. The address is http://www.irs.gov.