TN 2 (03-08)
GN 05001.012 Benefits Paid
All benefits actually paid or credited, including benefits paid in error, are treated as “paid”.
2. Equivalents of Payment
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.
3. Workers’ Compensation (WC) Offset
Congress requires that Social Security include WC offset in benefits paid.
4. Payments Not Made
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.
5. Facility-of-Payment Provision
For tax purposes, disregard this provision. For an explanation of the provision, see “Facility-of-Payment” (GN 02603.075).
Benefits are paid by:
issuance of a check;
electronic funds transfer (direct deposit), or
Withholding, for example WC Offset.