Ask Mary Jane
Social Security General Archive

Q. Other than age at the time of retirement, how is the amount you receive in benefits determined?

A. Social Security benefits are based on an average of virtually a full work life of earnings from which FICA payroll contributions have been withheld. When you apply for benefits, the Social Security Administration will index your old earnings to bring them up to date. From your lifetime indexed earnings, the 35 highest years of earnings will be selected. If you have more than 35 years of Social Security earnings, the lowest years will be disregarded; if you have fewer than 35 years, some zero years will be included in the calculation. Your benefit (known as your Primary Insurance Amount or PIA) will be determined from the monthly indexed average. The Primary Insurance Amount is the benefit payable if you begin benefits in the month you reach full retirement age. The benefit payable is reduced for months of early retirement or increased for deferred retirement.

Go on line to www.socialsecurity.gov and click on Calculate Your Own Benefit for a more detailed example of how a benefit is determined.

Q. I will be 66 in 18 months; my wife will be 42 at that time. We have two children, ages 5 and seven. Can you guesstimate what benefits would be for us at my full retirement age and at age 70? If I pass away, what would the benefit be to my wife and children? Assume maximum Social Security tax contributed over 30 years.

A. Your most recent Social Security Statement provides the answer to your questions. If you begin your benefits the month you reach full retirement age, the combined benefits to you and your family will be the maximum family benefit shown on your Statement. You will receive your own benefit. The difference between your benefit and the family maximum will be divided equally between your wife and children. When the youngest child reaches age 16, the benefit to your wife will cease and the difference will be divided between the two children. The children's benefits will continue to age 18; 19 if still in high school. The final child on the rolls will receive 50 percent of your full-retirement-age benefit.

Beginning with the month you reach full retirement age, there is no longer an earnings limitation. Benefits are payable regardless of earnings. Benefits to dependents are always based on the full-retirement-age benefit so there is no advantage to deferring your own benefit once the earnings limitation is no longer a factor. Your best option would be to file for benefits for yourself and family as of January of the year you will become full retirement age. Advise the Social Security Administration of your anticipated annual earnings and they will determine how many months of benefits you can receive before the month you reach full retirement age. If you wish your benefit to grow to the age-70 amount, suspend your own benefit the month it becomes payable. Your wife's and children's benefits would continue and your own benefit would earn delayed retirement credits until the month you reach age 70 or until the month you ask that your benefits be put into pay status.

The response to your second question is essentially the same. If there are more than two surviving dependents, the family maximum is the amount payable. Each surviving dependent is entitled to 75 percent of your full benefit. Because three times 75 exceeds the family maximum, each would receive one-third of the amount payable. When the youngest child reaches age 16, your wife's benefit would cease and each child would receive 75 percent of your full benefit until he or she came off the benefit rolls.

Q. I will be turning 62 years old this coming August. I want to apply for my Social Security benefits. What paper work do I need to fill out and where can I get the paper work I need?

A. Call 1-800-772-1213 or call your local Social Security office and request an appointment to apply for your Social Security retirement benefits. If you prefer, you can begin the application process on line. Go to www.socialsecurity.gov . Click on Qualify and Apply.

You will need your Social Security account number, birth certificate and, if you are a veteran, your DD214 discharge certificate. If you are married and/or have young dependent children, you will need your marriage certificate and your dependents' birth certificates. Your local Social Security office can advise you where those documents can be obtained.

Q. My husband just started his Social Security retirement benefit. I am age 45. If something happens to him, will I receive his benefits and how much?

A. Unless you have young, dependent children in your care, you will not be eligible for a Social Security benefit until you reach retirement age. A Social Security spouse benefit is payable at age 62 and a widow benefit at age 60. A disabled widow can begin benefits as early as age 50.

Q. I know that Medicare is deducted from your Social Security check at age 65. If I retire at 62, is Medicare deducted also?

A. You may begin your Social Security retirement benefit early, but you will have to wait until the month you reach age 65 for Medicare to begin. If you are already receiving Social Security benefits at that time, you will receive information about Medicare about three months before your birthday. The first Medicare premium will be deducted from the payment for the month before you reach 65. Medicare coverage will begin on the first day of the month you are 65.

Q. I am 65 and started drawing Social Security; my wife is drawing too. My question is: what are the rules for drawing money out of my IRA? I want to take out around $6,000 to pay credit cards off. How will this affect me? Will I lose my monthly benefits? How about paying taxes on $6,000?

A. Withdrawals from your 401K plan or liquidation of any other retirement assets will not affect your Social Security benefits. The Social Security annual earnings limitation considers only earnings from employment or self-employment. Pensions, interest, dividends, capital gains or other retirement savings are not earnings from new work related activity.

Call the Internal Revenue Service 1-800-829-3676 for tax information.

Q. I just received notice of over payment of S.S. benefits. Can you explain what this is all about? I've continued to work and pay into Social Security. Shouldn't my benefits increase?

A. The most frequent cause of a Social Security overpayment notice is excess earnings. Until full retirement age, Social Security law imposes an earnings limitation on persons receiving benefits. In effect, the limitation is a rough measure as to whether the applicant for retirement benefits has actually retired. In the first year of retirement, a monthly retirement test is used. In 2007, the monthly test is $1,080. Once benefits begin, no benefit whatsoever is payable if monthly earnings exceed the monthly limit. Even in the first year of retirement, the annual earnings limitation can be used if it permits more months of benefits to be paid. In 2007, the annual limitation is $12,960. Each $2 in earnings over the limit requires the Social Security Administration is to withhold $1 in benefits.

Excess benefits must be repaid either by a refund or by a reduction in future benefits. When post-retirement earnings are substantially over the limit, it sometimes makes better sense to withdraw a Social Security benefit application, repay all benefits received to date and resubmit a new application when ready to leave the work force. If that is your situation you may wish to discuss this option with your local Social Security office claims representative.

An automatic recalculation takes place each year when new earnings are credited to a retiree's earnings record. If a year of new earnings exceeds a year of indexed earnings used in determining the initial benefit, monthly benefits increase. The increase takes place in November, but the benefit increase is retroactive to the previous January.

Q. I am currently receiving Social Security benefits as a widow. I was born in 1943 so I am trying to figure out if full retirement age for me is 66 or 65 and 8 months that I read about for the surviving spouse by year of birth.

A. The increase in age of full retirement is different for a widow than it is for a wage earner. Essentially, it lags two years behind. Born in 1943, your full retirement age for widow benefits is 65 years and eight months. Full retirement age is 66 for a benefit based on your own Social Security earnings record.

Q. My grandson lost his Social Security card. How do I go about getting him a new card?

A. Your grandson can be issued a new Social Security card at your local Social Security office. He will need to file a new application for a card and provide proof of his identity and U. S. citizenship or legal resident status. If you are applying on his behalf, in addition to proof of his identity and citizenship or legality, you will need proof of your identity.

Go to http://www.socialsecurity.gov/ss5doc/ for a detailed listing of the types of documents accepted as proof of identity. You can either download the application form or call the Social Security Administration at 1-800-772-1213 or call or visit your local Social Security office to request an application.

Q. I am single and will be eligible to receive SS as of next January. Will I have to pay income tax on this?

A. All Social Security benefits are subject to Federal income taxation. Whether any tax is due depends on other income. For specific information on taxation of Social Security benefits, call the Internal Revenue Service at 1-800-829-3676 or go on line to www.irs.gov and read or download publication No. 915.

Q. My mom is 86 and has minimal income, other than Social Security. She recently inherited some property. Some of the assets may be sold, at which time she would get the proceeds. Also, there may be some income from harvesting trees on farm property that she inherited. Can this affect her Social Security?

A. Income and assets have no effect whatsoever on entitlement to Social Security or Medicare. That is true whether your mother is receiving her own benefit or a benefit based on a deceased spouse's Social Security earnings record.

If your mother is not receiving Social Security or if her Social Security is so low that she also receives Supplementary Security Income (SSI), her SSI benefit could be lost if she inherits income or property. There are very strict income and asset tests for SSI benefits or for medical assistance. Your mother could also lose eligibility for Medicare "extra help" with the new Part D prescription drug benefit or other low-income Medicare assistance programs if the value of the assets exceeds the limits in the law.

Q. My husband and I both worked full time for many years and individually will qualify for close to a maximum benefit. Will we each be able to do that, or is there a maximum payment to married persons that is less than the total they would receive if they were not married? If so, what is the maximum, today, that a married couple can receive?

A. There is no maximum benefit for a married couple when both have participated in the work force. Each receives his or her own benefit. The survivor receives whichever of their two benefits is the greater.

Q. I am a widow two kids 13 and 12. I am 35 years old and have no plans to marry. I understand that I will continue to get Social Security benefits until my youngest child turns 16. Is there any way that I can continue to get benefits - maybe at a reduced rates - after my youngest child turns 16? Do I have to wait until 60? I rely on Social Security to survive.

A. A young widow is eligible for a Social Security survivor benefit only if she has a young child or children in her care. This caregiver benefit is only payable until the youngest child reaches age 16 unless the child is disabled. From the time the youngest child reaches age 16 until the widow reaches retirement age, no benefit is payable.

There are many programs for assisting women entering or reentering the work force after years as homemakers. Contact your local Employment Service office. The Employment Service may be able to offer you training and advice to help you become self-supporting until you become eligible for a widow benefit at retirement age.

Q. I am 63; my former wife is 62. She is receiving benefits on my Social Security number. Neither of us is married. If I get married can she continue to receive benefits? Can I also? Can my future wife receive benefits?

A. All three can receive benefits. Security benefits payable to an eligible divorced spouse have no effect whatsoever on a worker's own benefit or on any spousal benefit paid to a second spouse.

Q. I retired on July 31st of this year after paying into Social Security for 30 years. In the last 25 of those years I paid the maximum amount based on earnings. How will my Social Security benefits be affected by my early retirement? What are my options as to when and how much I may begin collecting? Thank you.

A. The amount of a Social Security benefit is determined on an indexed average of the highest 35 years of lifetime earnings. If a wage earner has more than 35 years of earnings, excess years are disregarded. If fewer than 35 years, some zero earning years are included in the calculation.

If you have left the work force, beginning benefits at your earliest eligibility age is a reasonable option. Benefits are reduced for early retirement, but the years of early benefits offset the lifetime reduction. Considering the time value of money, over an average life expectancy, the same total dollars will be received whether benefits begin at age 62, 70 or any month in between.

Q. My mother worked over 50 years for the same employer as a bookkeeper/clerk and did not begin benefits until after age 70. Her Social Security check, based on her earnings is approximately $650. Is there a means of checking that this is the maximum benefit she is due?

A. If your mother did not begin receiving Social Security benefits until age 70, her monthly benefit was enhanced by delayed retirement credits. Delayed retirement credits are the opposite of early retirement reductions. Given that fact, her benefit seems unusually low unless she always worked for very low wages. No matter how many years a wage earner works, if average lifetime earnings are low, benefits are low.

The way to check the accuracy of your mother's Social Security retirement benefit is to ask the Social Security Administration for a printout of her earnings history. If her earnings are properly recorded for all years of work, you can be confident her benefit is correct. If her earnings record is inaccurate or incomplete, ask for help in having it corrected.

Q. My date of birth is 10/10/45. When is the earliest I can submit an application for Social Security? How can I get an application? Can this be done on-line?

My first marriage lasted 26 years with my ex-wife (55yr) now disabled. When can my ex-wife first apply for a Social Security spouse benefit (she never worked outside of the home).

The first month you will be eligible for a Social Security retirement benefit is November 2007 with the first benefit payable in December 2007. If you want to receive a benefit in the first month you are eligible, you should begin the application process about the first of September. If you so choose, you can begin on line. Go to www.socialsecurity.gov and follow instructions. The web site lists the documentation needed.

Even though she is disabled, your ex- wife will not be entitled to a Social Security spouse benefit based on your Social Security earnings until she reaches age 62. If you predecease her, since she is past 50, she could be immediately eligible for a disabled widow benefit if her disability is severe enough to meet the Social Security Act's disability criteria.

Q. My sister-in-law is classified as completely disabled due to mental and physical problems; she receives Social Security and is eligible for Medicare and Medicaid. Our wills are set up to have her receive 1/5 of our estate. Assuming this $ amount is in the high six figures but that she may live longer and require custodial care, will the inheritance result in her losing her Social Security benefits? She lives in the state of Iowa . Is there a better way to structure our wills to allow her to retain benefits of Social Security but keep the inheritance?

A. Financial assets never affect Social Security Disability Insurance benefits based on an individual's own earnings history. Nor do they affect Dependent Adult Child benefits based on a retired or deceased parent's Social Security earnings record.

Income or assets do affect eligibility for Medicaid or Supplemental Security Income (SSI) benefits. If resources are more than $2,000 plus a $1,500 burial allowance, SSI and Medicaid benefits are cancelled until resources are spent-down to the allowed level. They could also affect eligibility for Medicare low-income assistance programs.

You may want to seek the assistance of a financial planner familiar with Iowa Medicaid law to learn how a trust fund or some other instrument could be structured so as to permit your bequest to enhance your sister-in-law's qualify of life.

Q. I am a 35-year British expatriate living in the USA . I am a permanent resident (but not yet a citizen). I have worked in the high- tech computer industry since I moved here. If I move back permanently to England , what happens to my Social Security contributions? Will I be able to collect any of my U.S. Social Security payments in England?

A. Social Security benefits are payable in virtually every country in the world. If you are outside the United States when you are ready to begin your benefits, your application may be filed at the nearest U. S. embassy or consular office. U. S. citizenship is not a requirement for receipt of benefits.

The United Kingdom is one of the countries with which the United States has an international Social Security agreement. You can review the particulars of that agreement by going on line to www.socialsecurity.gov . Click on International (under Resources in the right-hand column).

Q. I'm thinking about taking my Social Security when I turn 62. My wife will be 58-1/2. How much can we earn before having to include Social Security as income?

A. Social Security benefits are partially subject to Federal income tax if adjusted gross income plus one-half of Social Security exceeds $25,000 for an individual or $32,000 for a couple.

For information as to how the taxable amount is determined, call the Internal Revenue Service at 1-800-829-3676. Alternatively, go to www.irs.gov and review or download IRS publication 17 which has a section on how to determine tax on retirement income.

Q. Where can I obtain the index factor used for the inflation calculation by year for the last 45 years? If I contribute the maximum amount to Social Security for 35 years and then do not work for 8 years, will I receive the maximum Social Security benefit when I turn 66 and start to collect benefits?

A. The indexing factors for persons born in your year of birth will be determined in the year you reach age 62. The base for indexing will be average earnings in the national economy the year you reach age 60.

Indexing factors for all years from 1951 through 2006 can be found on the Social Security Administration's web site (www.socialsecurity.gov). Under publications, search for the Annual Statistical Supplement, 2006. Select tables 2.A8 and 2.A9. Alternatively, from the Social Security web site home page, select Calculating Your Own Benefit. Click on Calculators and then on Detailed. You won't be able to calculate your own benefit if you are less than 62, but you will be able to see how benefits are calculated.

To receive the monthly benefit announced as the maximum payable at age 66 in the year you reach age 66, you would need maximum earnings in every year from age 21 through age 65.

Q. Did you mean to write ... To receive the maximum at age 66, you need the maximum earnings in every year from age 31 (NOT 21) through age 65???

A. Twenty-one was the correct number. The Social Security Administration looks at lifetime earnings, regardless of year earned, in determining any individual's retirement benefit. After indexing, the highest 35 years are selected. The benefit determined is based solely on that individual's lifetime earnings record.

In publishing a maximum estimate for the birth cohort reaching age 62 or full retirement age in any given year, the Social Security Administration uses the highest 35 years after that birth cohort's 21st year.

Q. My husband had been on Social Security prior to his death. During a personal visit at our Social Security office I was informed that I did not qualify for benefits since I earned too much money. One month later my old bank called to tell me there were checks coming from Social Security to a closed account. I called Social Security and asked why they were sending me checks. The person to whom I spoke insisted that I was entitled to the money and wanted my current bank account. I gave the agent my new bank account but I told her that I was sure I was not entitled to the money. I also told her I was sure Social Security would want all of the money back (this happened to me before while my husband was on Disability benefits). She assured me repeatedly that I was in fact entitled and had to take the money. Sure enough they stopped payments six months later and have demanded repayment. I complained and was given a waiver to fill out. It does not provide for "why I should not have to pay this money back." It requires proof that I need the money. While I do need the money, I am not sure if it is worthwhile to complete the waiver and subject myself to this examination when this was clearly the Social Security office's mistake. It makes one not trust the money that is sent, and worry if they will stop the benefits I receive on behalf of my son. On principal I do not believe that I should have to repay this money. I have had the Social Security Administration do this to me in the past at least twice. I am tired of being a yoyo.

A. Overpaid Social Security benefits must be recovered unless the recipient is entitled to a waiver. If the recipient is totally without fault in receiving the overpayment, there are two options for a waiver. The first is based on need. The second is that it would be "against equity and good conscience" for the Social Security Administration to demand repayment. If you choose not to complete the financial statement as to need, you might wish to pursue the second option.

Q. My wife and I will turn age 62 soon. I am going to wait until age 65 to draw SS; my wife would like to draw SS now. Her amount will be less than 1/2 of mine. Will she still qualify for 1/2 of my earnings when I start to draw at age 65 if she starts to draw at age 62?

A. Your wife may begin her own Social Security retirement benefit any time after reaching age 62. When you begin your benefit, she will be entitled to a spouse benefit. The additional amount (if any) she will receive as a spouse is the difference between her own full retirement age benefit (i.e. the amount of her benefit before her early retirement reduction) and half of your full benefit. If she is still less than full retirement age when a spouse benefit begins, the spousal portion will be reduced for any remaining months of early retirement.

Should you predecease your wife, her own early retirement will no longer matter. She would continue to receive her own reduced benefit, but enough would be added to bring her widow entitlement up to the full benefit you would receive if still alive. The widow portion would be reduced only if she were still less than full retirement age when widow benefits began.

Q. I'm 52 years old. Can I retire now? How can I find out what my benefit amount would be? Could I still work after I retire?

A. The earliest a Social Security retirement benefit can be paid is age 62 unless the wage earner is disabled. Social Security Disability Insurance benefits can begin at any age if a wage earner has a sufficient Social Security earnings history and is no longer able to work.

Call the Social Security Administration at 1-800-772-1213 and request an application for a Social Security Statement. Alternatively, order a Statement on line at www.socialsecurity.gov . (Under Records on the home page, click on Your Statement) Indicate the earnings you anticipate between now and the time you intend to leave the work force. About a month after you complete and submit the application you will receive a Statement estimating the benefits you will be eligible to receive at retirement age. The Statement will also provide an estimate of disability benefits should you become too disabled to work and survivor benefits for dependents should you die prematurely.

Q. Someone told me if you don't sign up for SS as soon as you are eligible, but do sign up a few years later, you get back pay to when you were first eligible. Is this true?

A. In general, Social Security benefits cannot be paid retroactive to the month the application for benefits is filed. The exception is if the applicant is past full retirement age. In that case, up to six months of retroactive benefits can be paid as long as backdating the application does not result in benefits being paid for any month prior to full retirement age.

 Q. My niece's husband, 24, died 10 days ago leaving his wife and two daughters age 5 and 2. He had a regular job. Are there any possible Social Security benefits available for the daughters?

A. As soon as convenient, your niece should call the Social Security Administration at 1-800-772-1213 or call or visit her local Social Security office to apply for a $255 lump sum death benefit and to file an application for monthly benefits for herself and her daughters. She will need her deceased husband's Social Security account number, his death certificate, their marriage certificate and birth certificates for the daughters. She need not wait until all the documents are assembled before starting the application process.

When a wage earner as young as your niece's husband dies, his dependents are insured for survivor benefits if he had as little as one year of Social Security earnings credits. The daughters will be entitled to benefits until age 18 (19 if still in high school). Your niece can receive a caregiver benefit until the youngest daughter reaches age 16.

Q. I own my own business but it is barely making ends meet. My girlfriend is on Social Security. We want to get married. Can she still get Social Security even if we get married?

A. The answer to your question depends on the type of benefit your girlfriend is receiving. Marriage or remarriage never affects an individual's right to his or her own Social Security benefit whether it is a retirement benefit or a Disability Insurance benefit. If your girlfriend is receiving a Social Security benefit as a dependent child or Disabled Adult Child of a deceased, retired or disabled parent, marriage is likely to cancel her right to a benefit. In general, a child who marries is no longer a parent's dependent.

Marriage also affects Supplementary Security Income (SSI) benefits. SSI is not Social Security. It is an assistance benefit based on need. When an SSI recipient marries, the income and resources of both husband and wife must be counted in determining need.

Prior to marriage, you and your girlfriend may wish to schedule an appointment at your local Social Security office to discuss her current benefit and how marriage might affect that benefit.

Q. I became eligible for full benefits in January 2005. My husband, an American citizen, is 66 and receives his Social Security. He spends some time abroad every year, with our children and their families. I am a legal resident (green card) and have heard that since I am not an American citizen I cannot follow him abroad, once I start receiving my Social Security. Can that be correct?

A. You have been misinformed. You do not have to be a U. S. citizen in order to receive your Social Security benefit while spending time outside this country. Social Security benefits are paid to U. S. citizens and to foreign nationals in virtually every country in the world.

You will want to discuss your future travel plans with the Social Security claims representative to learn what difference an extended trip might make. When foreign nationals reside outside the country, U. S. income tax must be withheld from the benefit. The rate of taxation is 30 percent on 85 percent of the benefit.

Q. In 2008 I will be 65 years and ten months. What will be the maximum amount that is allowed to receive from Social Security? In other words, what is the ceiling?

A. There is no ceiling on monthly Social Security benefits other than that dictated by the Social Security benefit calculation formula.

To receive the maximum benefit payable in any given year, a wage earner must have paid FICA payroll taxes on maximum earnings in every year of his or her work life. A maximum wage earner who retired at 65 years and eight months in 2007 receives $2,053 per month. A spouse also full retirement age receives a benefit equal to 50 percent of the wage earner's benefit. The maximum payable goes up each year in concert with the rise in the maximum taxable wage base.

From full retirement age to the month age 70 is reached, delayed retirement credits are added for each month a benefit is deferred. For example, your benefit would increase 2/3 of one percent for each month you deferred a benefit past full retirement age.

Q. My husband only paid into Social Security for seven years. Prior to coming to the U. S. in 1997 he worked in Canada . I read somewhere that the Canadian record could help a person qualify for Social Security. Could I receive a Social Security widow benefit at age 60? If so do they take into consideration any pension received from Canada ?

A. Canada is one of the countries with which the United States has an international Social Security agreement. Under terms of the agreement, a wage earner or surviving spouse can be eligible for Social Security with fewer than ten years of earnings history. The benefit would be small, as it would be based on only seven years of Social Security earnings. There would be no reduction due to receipt of a Canadian Pension Plan widow benefit.

For information about the agreement, go to www.socialsecurity.gov . Click on International (right hand side, under Resources).

Q. If I were to retire at age 60 and begin receiving Social Security benefits at age 62, would the two years of zero earnings between my retirement and beginning to collect benefits be factored in to my Social Security benefit calculation? If so, would this greatly reduce my benefits?

A. How leaving the work force before retirement age or changing to new lower wage employment will affect your monthly Social Security benefit depends on your prior earnings history. If you have spent your full work life in the paid work force, a minimal number of low or no-earning years could make very little difference. If you have a short earnings history, the difference could be substantial.

The best way to learn how leaving the work force early or accepting a lower paying job would change the latest benefit estimate you have received, is to request a new estimate. Call the Social Security Administration at 1-800-772-1213 and request an application for a new Social Security Statement. Call the Social Security Administration at 1-800-772-1213 and request an application for a Social Security Statement. Alternatively, order a Statement on line at www.socialsecurity.gov . (Under Records on the home page, click on Your Statement) Indicate the earnings you anticipate between now and the time you intend to leave the work force. About a month after you complete and submit the application you will receive a Statement estimating the benefits you will be eligible to receive at retirement age. The Statement will also provide an estimate of disability benefits should you become too disabled to work and survivor benefits for dependents should you die prematurely.

Q. My friend's husband is dying. He was approved for Social Security disability and is due to receive his first check in June. His wife, age 57, is applying for disability. She does not have enough credits to qualify for disability on her own. Does he have to receive his first payment before she is eligible disabled widow for benefits? He may not live until June 1. A lawyer advised them that if he has not received his first check, she cannot receive benefits on his record.

A. The legal opinion your friend received is absolutely wrong. What matters is that her husband is fully insured for benefits in the month of his death.

Your friend will be entitled to a widow benefit at age 60 regardless of whether her husband ever receives a benefit. If the Social Security Administration determines that your friend meets the disability criteria of Social Security law, she could be entitled to a widow benefit immediately upon her husband's death.

Q. I have been of the belief that Social Security benefits are determined by taking the average income of all the years of employment. I recently heard that it is the average of the highest thirty-five years of employment. Which is correct?

A. Monthly Social Security benefits are determined on average monthly earnings over 35 years. When a benefit application is filed, the Social Security Administration indexes lifetime earnings to bring them up to date. The highest 35 years of earnings are selected and averaged to determine the monthly benefit. If a worker has more than 35 years of earnings, excess lower-earning years are disregarded. If the worker has fewer than 35 years of earnings, some zero years are included in the calculation.

Q. I will become 62 this year and eligible for Social Security. If I decide to take it this year, will I be able to change my mind next year, stop taking Social Security payments and wait until my true retirement age (close to 66)? If so, how will this affect my future payments? Also, if I do not take it this year, may I start it when I am 63 or 64 and, if so, how will it affect my future payments?

A. Once Social Security benefits begin, they can be stopped at any time with a phone call or visit to a local Social Security office. Benefits can begin in any month after age 62. If the retiree is not yet full retirement age, the full benefit is reduced slightly over 1/2 percent for each month the retiree is less than full retirement age when benefits begin. If some months of benefits are not paid because benefits are stopped or some months of benefits are withheld due to earnings over the annual earnings limitation, there is a recalculation at full retirement age. The early retirement reduction is removed for any month an early retirement benefit was not paid. All future benefits are increased.

Q. I plan to take my Social Security this year as I will be 62. I also plan to work and will make over $10,000.00. Should I have Social Security withhold taxes?

A. Social Security benefits are taxable if half of Social Security added to adjusted gross income exceeds $25,000 for a single individual or $32,000 for a couple.

If you believe you will owe Federal income tax on a portion of your benefits you may ask the Social Security to withhold tax. If in doubt, call the Internal Revenue Service at 1-800-829-3676 and ask for help in estimating the amount that might be due. The Social Security Administration will follow your instructions as to how much to withhold.

Q. I receive my Social Security payment at the most ill-timed part of the month. Is there anyway I am able to possibly change the time I receive my monthly payment to the first of the month as opposed to the last of the month. It causes a great deal of inconvenience in having to move money around to pay monthly bills.

A. Unfortunately, the huge volume of Social Security payments made each month required the Social Security Administration to establish four payment dates. Policymakers who decided on the current system expected that once regular payments began, beneficiaries would be able to adjust to the schedule. If you are experiencing difficulty, you might wish to see if some of your creditors are willing to alter their billing dates.

Q. I am 61, in excellent health, make a substantial salary and plan to keep working for 10 (+ or -) years. At what age should I file for my Social Security benefits to obtain the most income over the years from those payments?

A. You will want to begin your Social Security retirement benefit no later than the month you reach age 70. That is the month your benefit reaches its maximum. Delayed retirement credits, 7.5 percent per year in your case, increase your benefit from the month you reach full retirement age through the last month you are age 69. Delayed retirement credits are the opposite of early retirement reductions.

Early retirement benefit reductions and delayed retirement credits are roughly actuarially fair based on average life expectancy. In effect, considering the time value of money, the same dollar value is received whether benefits begin at age 62, at age 70, or any month in between.

Earnings over the annual Social Security earnings limitation would limit your option to begin reduced, early retirement benefits. There is no limit on earnings once full retirement age is reached.

You may want to begin benefits when you reach full retirement age if you are married and your wife is entitled to a benefit based on your Social Security earnings record. After full retirement age, once you apply for benefits, a spouse benefit could continue even if you subsequently requested that your own benefit be withheld in order to earn delayed retirement credits.

Q. I am eligible for benefits at 65 and eight months; my husband will not have enough credits. I know he will receive survivor benefits if I die, but does he receive any income if both are alive?

A. When you apply for your Social Security benefit to begin, if he is at least 62, your husband will become eligible for a Social Security spouse benefit. At 65, he will be eligible for Medicare based on your Social Security earnings record.

Upon your death, your husband will be eligible for a surviving spouse benefit (i.e. widower benefit). Whether a spouse or widower benefit is payable depends on his own earned retirement benefit. For example, if he receives a pension from non-Social Security government employment, any spouse benefit he is otherwise entitled to receive will be reduced by two-thirds of his government pension. An issue brief discussing this provision of law can be found at http://www.socialsecurity.gov/pubs/10007.html .

Q. How can I change my name back to my birth name?

A. You can correct the name on your Social Security record with valid proof of your identity.

Contact the Social Security Administration at 1-800-772-1213 to arrange an appointment at your local Social Security office. When you make the appointment, be certain to ask what types of proofs of identity you will need to bring to the office to accomplish the change.

You will also want to make certain your employer is using the same name as that on Social Security records so that all of your reported earnings are properly credited to your account.

Q. Do the earnings of your final ten years of employment have any special bearing on your Social Security benefits once you retire?

A. Final years of earnings have no special significance. Earnings prior to age 60 are indexed to bring them up to date. Actual earnings from age 60 on are included in the benefit calculation. Benefits are determined on the basis of the highest 35 years of indexed or actual earnings. It does not matter when those years of earnings occur.

Q. I intend to collect in 2008 when I am 65 years and 10 months. From 1963 through 2000, I paid the maximum Social Security tax each year. I then semi-retired and my earnings now are below the maximum contribution amount. My 2004 Social Security Statement showed an $1,817 benefit at age 65-10 months. My 2005 statement shows $1,808. Can I look forward to further reductions, especially since my earned income will go down further until retirement? How much of a reduction can I expect?

A. A Social Security benefit statement is an estimate based on projected earnings. If the earnings projection changes. the estimate can go up or down. An actual benefit is not determined until a benefit application is filed.

Call the Social Security Administration at 1-800-772-1213 and request an application for a new Social Security Statement. Call the Social Security Administration at 1-800-772-1213 and request an application for a Social Security Statement. Alternatively, order a Statement on line at www.socialsecurity.gov . (Under Records on the home page, click on Your Statement) Indicate the earnings you anticipate between now and the time you intend to leave the work force. About a month after you complete and submit the application you will receive a Statement estimating the benefits you will be eligible to receive at retirement age. The Statement will also provide an estimate of disability benefits should you become too disabled to work and survivor benefits for dependents should you die prematurely.

Q. I am 49 years old. How long do I have to work to get full Social Security benefits? How much would I receive a month?

A. Every wage earner must have a minimum of ten years of earnings in Social Security covered employment in order to receive Social Security retirement benefits. The benefit payable is determined on the basis of lifetime average earnings on which Social Security FICA payroll taxes have been paid.

Q. I recently read that you can you start collecting at age 62, but if at 66 or full retirement age you give all the money back, you can now collect at higher rate. If true, is it that simple?

A. The Social Security Act allows anyone who applies for and receives early retirement benefits to subsequently withdraw the application, pay back all benefits received and file a new application at the later starting date.

If you are receiving early retirement benefits and choose to repay benefits received to date, contact the Social Security Administration at 1-800-772-1213 or call or visit your local office. Consult the Internal Revenue Service for advice on tax implications in the event you have paid Federal income tax on benefits already received.

Q. My wife has Social Security earnings in each of 25 past years. However, in only the past seven years were those earnings $10,000 or more (high year is $35,000). How many more years must she work, and how much must she earn during those years, to qualify for maximum Social Security?

A. Maximum benefits are payable only to wage earners who had maximum taxable earnings in every year of a work life. At the time your wife files an application for Social Security benefits to begin, the Social Security Administration will index her lifetime earnings to bring them up to date. The highest 35 years of earnings will be used to determine her Average Indexed Monthly Earnings and, from that average, will determine her monthly benefit. Anyone with more than 35 years of earnings has excess lower-earning years disregarded; if fewer than 35 years of earnings, some zero years are included in the benefit calculation.

Q. I am inquiring for my housekeeper. She has worked for many years, but only a couple days a week. She has contributed to Social Security. Is there a minimum amount she must put into the system to be able to collect when she retires? If so what is that number and how does she go about finding out what she has contributed?

A. Insured status for Social Security retirement benefits requires ten years of earnings (40 quarters or credits) in Social Security covered employment. Up to four credits can be earned in any calendar year. The amount of earnings required for a credit rises from year-to-year with the rise in earnings in the economy. For example, a quarter of coverage could be gained in 2005 by earnings of $920; in 2006, $970. In 2007 earnings of $1,000 are required for each quarter of coverage. Earnings of four times the quarterly amount provides the maximum four credits for the year.

Employers are required by law to withhold and match Social Security FICA payroll taxes on earnings of domestic employees. In 2007, the employer is responsible for payment of taxes if he or she pays the domestic employee at least $1,500 during the year. Unfortunately, many employers disregard this legal responsibility leaving domestic employees among the least protected of our nation's workers.

Your housekeeper should call the Social Security Administration at 1-800-772-1213 and request an application for a statement of her earnings record. When she completes and returns the application, a Statement will be sent to her in approximately one month. The Statement will let her know how many credits she has and approximately how much she could expect to receive each month in retirement or disability benefits. If you would care to assist her, the application can be completed on line at www.socialsecurity.gov .

Q. I understand there are people overseas receiving Social Security checks because they were fathered by American men and we the American people are paying the bill. Is that correct? If so why? If this is true, I can understand why the Social Security funds are so low.

A. It is not true. Children fathered by U. S. citizen men, but born outside of marriage, must be legitimized before being eligible for benefits. Even if legitimized, dependent children are entitled to benefits only upon the retirement, death or disability of the parent.

Foreign national spouses or adopted children living outside the United States are ineligible for Social Security benefits unless they have lived in the United States for at least five years in the status that accords them the benefit. Foreign nationals living within the United States must present proof of legal residence before benefits are payable.

Q. My father-in-law is 77. He receives Social Security benefits and plans to marry. His intended receives her deceased husband's benefits. Do they lose either benefit after marriage?

A. If your father-in-law and his fiancée choose to marry, there will be no change whatsoever in either of their Social Security benefits. Marriage or remarriage never affects a worker's own Social Security benefit. Marriage after age 60 (50 if disabled) never affects a widow or widower's right to a survivor benefit based on a prior marriage.

Q. How many Americans receive Social Security? Where I can find this to use as a citation?

A. As of December 31, 2004, over 48,445,900 individuals were receiving monthly Social Security benefits. For specific information go on line to the web site of the Chief Actuary of Social Security. The address is http://www.socialsecurity.gov/OACT .

Click on Beneficiary Data and then access Data Bases. You will find a count and breakdown of the various categories of beneficiaries.

Q. My sister died last month of a heart attack leaving behind a husband and four children. I called Social Security and they said that the family would receive nothing. I just can't believe they punish all housewives. Isn't there anything that she could receive? It just doesn't sound right.

A. Social Security is an insurance program covering workers and their dependents. Had your sister earned Social Security work credits equal to one-fourth of the years between age 21 and the year of her death, she would have been insured. Her husband would have received a $255 lump sum death benefit and her children would have been eligible for cash benefits through age 18—through age 19 if still in high school.

Q. I'm writing to you from Japan where I have lived and worked since 1978. I plan to return to the USA . I am 67 years old and will have to work full time for at least two years to qualify for Social Security benefits and Medicare. Falling through the safety net is a very frightening experience. If there is anything your office can do for me?

A. Eligibility for a monthly Social Security benefit and premium-free Medicare Hospital Insurance requires 40 calendar quarters (ten years) of Social Security work credits. If I understand your email correctly, the Social Security Administration advised you that you have 33 credits. It is possible that is incomplete. Unless you have already applied for a benefit and submitted a certified copy of your DD214 military discharge certificate, your four years of Korean War service are not yet credited to your earnings record.

Members of the Armed Forces began paying FICA taxes in 1957. Anyone who served in the military from 1939 through 1956, however, is entitled to free Social Security work credits for service during those years if adding those credits would allow benefits to be paid or would increase the benefit payable.

With the removal of the Social Security earnings limitation applicable to persons over full retirement age, you may already have sufficient work credits and could begin receiving benefits immediately without regard to your current earnings. Apply at the U. S. Consul or Embassy nearest to your residence in Japan .

While you continue working in Japan , you will receive a monthly benefit determined by the basic Social Security computation method. Once you begin receiving an annuity from work that was not subject to Social Security, your Social Security benefit must be redetermined under the Windfall Elimination provision. Windfall Elimination provides a reduced benefit. For specific information about this provision and how it will affect your Social Security benefit, go online to the Social Security Administration see http://www.socialsecurity.gov/retire2/wep-chart.htm , http://www.socialsecurity.gov/pubs/10045.html#amount and http://www.socialsecurity.gov/retire2/anyPiaWepjs04.htm .

Q. I plan to retire when I am 56. Will I have to pay Social Security taxes on my teacher pension?

A. Social Security FICA payroll taxes are imposed only on wages—never on other sources of income.

Q. After beginning my Social Security, I started and ran a small business for several years and paid self-employment Social Security taxes. I am going back into business. Do I ever receive anything more from Social Security?

A. Social Security monthly benefits are based on average earnings over the number of years of work the law requires the Social Security Administration to count. Before they are averaged, old earnings are indexed to bring them up to date. Indexing increases the dollar value for averaging purposes. Workers born in 1929 or later receive benefits based on their 35 highest indexed earning years. Workers born earlier require fewer years of earnings in determining the benefit amount.

Once the monthly benefit amount is determined, monthly benefits increase due to new earnings only if a year of new earnings exceeds one of the years of earnings used in determining the initial benefit. An automatic recalculation takes place each year when new earnings are credited to a retiree's earnings record. If a year of new earnings exceeds a year of earnings used in determining the initial benefit, benefits are increased. The increase generally takes place in November, but the benefit increase is retroactive to the previous January.

You may obtain a print-out of your actual and indexed earnings by calling the Social Security Administration at 1-800-772-1213 and requesting one. Then you will know whether a year of new earnings should result in an increase in your monthly benefit.

Q. I turned 65 and my Social Security check was reduced $93 for Medicare coverage. Will my next COLA increase be based on the amount of money I was receiving prior to the Medicare reduction or the amount after the reduction?

A. Annual Social Security cost-of-living adjustments are based on the full Social Security monthly entitlement before the Medicare premium is withheld.

Q. I hear that veterans of WW2 receive a greater Social Security benefit then those who were not in the service. If this is correct, how do I go about claiming the higher benefit?

A. Free Social Security earnings credits are provided for any veteran who served from 1939 through 1956 if military service credits increase monthly checks. When a claim is filed, it is normal practice for the Social Security Administration to ask about military service and, if applicable, request a copy of the veteran's discharge certificate. If you are unsure if you provided a copy of your discharge certificate when you applied for benefits, call the Social Security Administration at 1-800-772-1213 and ask. If necessary, the service representative will make an appointment for you at your local office.

Generally, military service credits for years before 1951 do not increase a claimant's monthly check. If pre-1951 credits are used, an older, lower benefit formula also must be used. Changes in law enacted in 1950, effective in 1951, provided a new, more generous formula than the computation method enacted in 1939.

Q. My uncle retired at 65 and is getting his monthly Social Security payment. However, his wife who still lives in Mexico and does not have a green card (only a passport) was recently telling me she is not getting a monthly spouse benefit payment or Medicare. Why is this? Does this have to do with the way my uncle filed the papers or is it because she is not a U.S. resident even though my uncle is. My uncle lives with her and commutes back and forth from the U.S. to Mexico .

A. Your uncle's wife is not receiving a Social Security spouse benefit because Congress in 1983 enacted legislation restricting benefits to foreign nationals. Unless a husband and wife have lived together within the United States for five years, a foreign national spouse living outside the United States is ineligible for a Social Security spouse benefit. If she were eligible for Social Security, she would be eligible for Medicare, but Medicare does not pay for care outside the United States .

If your uncle's wife resided in the United States , she would be eligible for both Social Security and Medicare.

Q. My daughter is named as the guardian of our disabled son when we both pass away. Will she be entitled to Social Security as the "guardian" of a disabled child? What will the payments be, if any, in relationship to my present Social Security payments?

A. Social Security provides a benefit to a parent caring for a young dependent child or a disabled adult child entitled to benefits. A guardian or other caregiver is not entitled to a benefit.

A surviving disabled adult child is entitled to receive a benefit equal to 75 percent of the wage earner's Primary Insurance Amount (PIA). A PIA is the monthly benefit a wage earner receives if he or she begins Social Security retirement benefits in the month full retirement age is reached. If you retired earlier or later, call the Social Security Administration at 1-800-772-1213 and ask for your Primary Insurance Amount. That will enable you to determine how much your daughter will receive on your son's behalf when she becomes his guardian.

Q. We know that every day people who have worked for 20 or more years die before reaching 65. What happens to all of that money?

A. Payroll taxes not needed for immediate benefit payment remain in the Social Security trust funds. Social Security is not only a retirement and disability insurance program. Social Security protects the dependents and survivors of retired, disabled or deceased workers. The FICA payroll taxes paid by workers who do not live to retirement age or who do not recover their own contributions make possible Social Security's wide range of family benefits.

Over four million young or disabled adult children receive monthly benefits as dependents of retired, disabled or deceased workers. Nearly three million retirement-age spouses and five million widows who have not earned their own benefit receive a check based on the working spouse's earnings. Numerous wives and widows and some husbands and widowers who have earned their own benefit receive partial spouse and survivor benefits because their own benefit is less than the benefit they are entitled to receive as a spouse or surviving spouse. In addition, approximately 2,000 dependent parents of deceased workers receive Social Security retirement benefits.

Q. How can I get a Social Security card? I am in the United States on a student visa. I need a Social Security account number to open a bank account or get a telephone.

A. Contact the Social Security Administration at 1-800-772-1213 or visit your local Social Security office. A Social Security representative can tell you whether you are eligible to receive a non-work Social Security account number or what documentation you must present to be issued a number.

Q. A friend is in a convalescent home, a victim of a stroke. Can this person accept money gifts in the form of a check or cash? Is she allowed to have a savings or checking account? How much can she have?

A. Whether your friend can receive money gifts depends on who is paying for her convalescent home care. If she is paying for her own care or family members are covering her care costs, she is free to accept any gift. If your friend has had to spend down her own assets to qualify for State Medicaid payment for her care, there are limits on her personal assets.

Medicaid recipients are allowed $30 a month for personal needs. A $10 gift may be acceptable, but any larger gift should be declared and applied to the cost of care. Medicaid recipients may have $2,000 in liquid assets in any form and another $1,500 in funds specifically set aside to meet burial costs.

Talk to convalescent home administrators about acceptable gifts that offer no conflict with Medicaid regulations. Following are examples of gifts your friend might enjoy: a hair dresser or manicurist appointment, a dental appointment if dental care is not provided, articles of clothing (not too lavish as theft is often a problem), a dinner out or a trip to a garden or gallery if she is able to leave the home, a television set, a reading lamp, a new plant or picture to brighten her room, etc.

Q. In January I turned 65. I am working full time, but was told I should apply for Social Security. My husband is deceased so benefits are being paid under his number. Can you tell me if I will have to pay taxes on what I earn plus what I received from Social Security or just on my total earnings from my job?

A. When you file your Federal income tax return, you will need to add half of the Social Security benefits you receive to your adjusted gross income. If the total is above the exempt amount, a portion of your Social Security benefits will be taxed. For specific information about taxation of Social Security or other retirement benefits, call the Internal Revenue Service at 1-800-829-3676 and request a copy of Publication 17, Tax Guide for Individuals. If you prefer, you can download the publication from the IRS web site. The address is http://www.irs.gov .

Q. Who do you notify that some one is taking advantage of SSI? This person has worked for about three years drawing cash monies of about $1,500 per month plus SSI?

A. Information about possible SSI fraud should be reported to the Office of the Inspector General of the Social Security Administration. Provide as much information as you can to identify the perpetrator of the fraud. If you can identify the employer, that would also help. You are entitled to have your own identity kept confidential.

Go online to the Social Security Administration at www.socialsecurity.gov and click on "How to Report Fraud." Follow the guidelines to report on-line or telephone the Office of the Inspector General at the phone number provided.

Q. My 72-year-old father immigrated to the U.S. four years ago. He is worried about his health. He has no Medicare and Social Security. He understands he has not worked in the United States and has made no contribution to Social Security and Medicare. He would like to know if these programs can help him.

A. Five years after his admission as a permanent resident, your father will be eligible to purchase Medicare. Medicare Part A in 2007 is $410 a month and Part B is $93,50.

Your father is not eligible for Social Security and will not become eligible until he has 10 years of Social Security earnings or survives you as your dependent.

Q. About a year ago I purchased a new car. The Credit Union (after a credit check) asked, "Did you know someone else is using your Social Security number?" I called the local Social Security office and was told, "You will have to pursue this on your own. There are no laws on taking on someone else's ID." Can you possibly give me some advice on where to pursue this?

A. Your local Social Security office should have advised you to report the misuse of your Social Security account number to the Office of the Inspector General of the Social Security Administration. The matter can be reported via e-mail, on-line, or through regular mail. The mail address is 6401 Security Boulevard , Baltimore , Maryland 21235 .

The on-line address is http://www.socialsecurity.gov ; click on "Reporting Fraud." Read the guidelines carefully and furnish as much information as you can. Include your name, address, Social Security account number, how the inappropriate use came to your attention, and any other pertinent information you have and the Office of the Inspector General will investigate. Your report of the fraud will be acknowledged so you will know it has been received and will be acted upon.

Q. My 82-year-old mother is living at a seniors housing apartment in another state. She has been diagnosed with Alzheimer's and is getting progressively worse. She will soon need a home where she can be taken care of. I am retired, living on a fixed income, and am unable to personally care for her. What, if any, options do I have for her and where do I start?

A. You need the help of Elder Care Locator. The national number is 1-800-677-1116. It is available Monday through Friday from 9:00 a.m. to 11:00 p.m. Eastern Time.

Elder Care Locator is a public service of the U. S. Administration on Aging and is administered by the National Association of Area Agencies on Aging and the National Association of State Units on Aging. The services provided are designed for situations like you face.

Elder Care Locator service representatives can put you in touch with local resources in the community where your mother resides. For example, they could help you identify a case manager who could assess your mother's needs and, hopefully, guide you and any other family members in making a long-term care decision that is best for all. Alternatively, they might suggest full- or part-time homemaker services such as shopping, cleaning and cooking if your mother does not need full-time care at the present time.

Q. I am married and for more than 30 years was a teacher under a state retirement plan. I spent three and a half years in the Air Force and had some part-time jobs while in school but lack 40 Social Security credits. Is there any chance I can receive Medicare without all forty credits?

A. At age 65, you will be eligible to purchase Medicare Part B Supplemental Medical Insurance. The 2007 monthly Part B premium is $93.50. Uninsured individuals age 65 or older also may purchase Part A. The full cost in 2007 is $410.00 per month. Individuals with 30 to 40 Social Security or Hospital Insurance work credits may purchase Part A at a reduced rate. The 2007 reduced rate is $226 per month.

Premium-free Medicare Part A Hospital Insurance is available to individuals who are fully insured on the basis of a personal earnings record (that is, 40 Social Security or Hospital Insurance work credits) or who are entitled on the basis of a spouse's earnings record. If your spouse is eligible for Social Security, you are eligible for premium-free Part A. If either of you is eligible for the reduced rate, both of you are eligible for the reduced rate.