TN 2 (03-08)
All benefits actually paid or credited, including benefits paid in error, are treated
Included in “benefits paid” are the amounts withheld to satisfy financial obligations
of the beneficiary, such as:
Supplemental Medical Insurance (SMI) premiums;
Medicare Advantage premiums (Part C);
Medicare Prescription Drug premiums (Part D);
recovery of an overpayment;
unpaid maritime tax;
nonresident alien tax.
Congress requires that Social Security include WC offset in benefits paid.
Benefits withheld for the following reasons are not considered “benefits paid.”
Suspensions and deductions under annual earnings test and foreign work test;
no child in care;
Vocational Rehabilitation referral refusal;
Windfall Elimination Provision;
public disability offset;
Government Pension Offset;
SGA by a blind DI beneficiary;
penal confinement; and
non-attendance by a student.
For tax purposes, disregard this provision. For an explanation of the provision, see
Benefits are paid by:
issuance of a check;
electronic funds transfer (direct deposit), or
Withholding, for example WC Offset.