I started taking my SSA benefits at 64. I had filed a wrongful termination case against an employer for firing me for a disability. I just went to mediation and they agreed to pay a larger sum of money. Though since I already take social security will I lose my feneits or can I prove to SSA that it was a special payment (form 131) and not lose my ss benefits?
Hi,
It certainly sounds like what you are describing would count as a special payment for Social Security earnings test purposes. It could still create an earnings test problem for you if you started drawing Social Security in the same year that you stopped working for the employer in question, though (https://secure.ssa.gov/apps10/poms.nsf/lnx/0302505030). In any case, you'll likely want to contact Social Security and explain situation to them so that they can take appropriate action.
Best, Jerry