Will incorrect 2004 earnings ($16K vs $105K) affect my Social Security benefits in 2025? No W2 due to company bankruptcy

Yes, that error will absolutely make a significant difference in your benefits! The earnings from 2004 are indeed indexed for inflation in the benefit calculation, but the indexing is applied to whatever amount is in your record. So if your record shows $16,000 instead of $105,000, you're losing the indexed value of $89,000 in your calculation, which is substantial. The good news is that you CAN correct this with your tax return and pay stubs. SSA Form SSA-7008 "Request for Correction of Earnings Record" is what you need. Submit it with your tax return copy and whatever pay stubs you have that show your correct earnings. You'll need to mail or bring these to your local office. Don't delay on this! There's technically a time limit to correct earnings (3 years, 3 months, 15 days after the year ends), but SSA often makes exceptions when you have proof.

The same exact thing happened to me with 2006 earnings!! My record showed like 24k less than I actually made. I got it fixed last year but took almost 6 months. tax return was enough tho, didnt have my w2 either

They're NEVER going to fix it!!! I've been fighting with SSA for 3 YEARS about missing earnings from 2005. Sent in everything - tax forms, pay stubs, even a letter from my former boss. Every time I call they say it's "being processed" but NOTHING CHANGES!!! The whole system is designed to pay us LESS than we deserve!!

This could definitely impact your benefit amount. For context, your Social Security retirement benefit is based on your highest 35 years of indexed earnings. The difference between $16,000 and $105,000 for one year could potentially reduce your monthly benefit by $100-300 depending on your overall earnings history. To correct this, you'll need to file Form SSA-7008. Since you don't have a W2, your tax return is crucial evidence. Make sure you have your Form 1040 and any Schedules showing the income. The pay stubs will help substantiate your claim as well. If possible, also get a statement from your former employer's HR department or former colleagues in management positions who can verify your employment and salary. Sometimes you can also contact the IRS directly for wage and income transcripts that might help your case.

Adding some specific numbers here to help you understand the impact: For 2004 earnings, the indexing factor for 2025 retirement would be approximately 1.55 (based on historical indexing patterns). So: - At $16,000 × 1.55 = $24,800 indexed value - At $105,000 × 1.55 = $162,750 indexed value That's a difference of $137,950 in indexed earnings for just that one year. When averaged into your 35-year calculation, that single year could affect your monthly benefit by approximately $328 per month or $3,936 per year for the rest of your life. Definitely worth correcting! And tax returns with pay stubs should be sufficient. Make an appointment at your local office rather than just mailing it in - you'll get faster service.

To clarify for everyone: Yes, SSA only counts your highest 35 years of indexed earnings. However, $105,000 in 2004 (indexed) would almost certainly be among those top 35 years for most workers. $16,000 might not make the cut, which means it could be replaced by a lower-earning year if corrected. Also important: The 3-year, 3-month, 15-day time limit for corrections can be waived if you have sufficient proof, which it sounds like you do. Tax returns are considered strong evidence by SSA, especially when supported by partial pay stubs.

One more tip - if you have your tax transcripts, get the "Wage and Income Transcript" specifically from the IRS. This shows all reported income forms including W-2s, even from decades ago. You can request this online at IRS.gov or using Form 4506-T. This official document can be VERY persuasive with SSA since it comes directly from another government agency. When you submit your correction request, also include a clear calculation showing the financial impact on your benefits (as outlined by another poster). This helps emphasize the importance of your case.

Thank you everyone for the helpful advice! I'm definitely going to pursue this correction right away. I'll try to get the wage transcript from the IRS, gather my tax returns and pay stubs, and make an appointment at my local SSA office. The potential $300+ monthly difference is definitely worth fighting for, especially considering that's thousands of dollars every year for the rest of my life. I'll look into Claimyr too if I have trouble getting through on the phone. Does anyone know if there's a specific department at SSA that handles earnings corrections that I should ask for when I call?

my neighbor had something similar happen and it took TWO YEARS to fix!!! and then they had the nerve to say they "expedited" it!!! 🤬