QUESTION: I am receiving Social Security benefits and I recently went back to work. Do I have to pay Social Security (FICA) taxes on my income?ANSWER: Yes. By law, your employer must withhold FICA taxes from your paycheck. Although you are retired, you do receive credit for those new earnings. Each year Social Security automatically credits the new earnings and refigures your monthly benefit. If your new earnings are higher than in any earlier year used to calculate your current benefit, your monthly benefit could increase.

QUESTION: How are my retirement benefits calculated?ANSWER: Your Social Security benefits are based on earnings averaged over your lifetime. Your actual earnings are first adjusted or "indexed" to account for changes in average wages since the year the earnings were received. Then we calculate your average monthly indexed earnings during the 35 years in which you earned the most. We apply a formula to these earnings and arrive at your basic benefit. This is the amount you would receive at your full retirement age. For some, that is age 65. However, beginning with people born in 1938 or later, that age gradually increases until it reaches 67 for people born after 1959. You can calculate your estimated benefit by using our Retirement Estimator, which offers estimates based on your Social Security earnings. Also, you can find your estimate on the annual Social Security Statement we send you about three months before your birthday each year.

QUESTION: If I call Social Security's toll-free number, can a Social Security representative take my application for extra help with the costs related to my Medicare prescription drug plan over the phone?ANSWER: For the fastest service, apply online at www.socialsecurity.gov/prescriptionhelp. However, if you call Social Security at 1-800-772-1213 and an interviewer is available, he or she may be able to take your application over the phone. If an interviewer is not immediately available, you can schedule a telephone appointment. Learn more about Social Security by visiting our Web site at www.socialsecurity.gov or calling us at 1-800-772-1213 (TTY 1-800-325-0778). For more information about the Medicare prescription drug program, visit www.medicare.gov or call 1-800-MEDICARE (1-800-633-4227; TTY 1-877-486-2048).