Q. I am single and will be eligible to receive Social Security 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 all of your other income. For specific information on taxation of Social Security benefits, call the Internal Revenue Service at 1-800-829-3676 or go online to www.irs.gov and read or download publication No. 915.
Q. I turned 65 and my Social Security check was reduced $105 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. Social Security Cost-of-Living Adjustments are based on the full Social Security monthly benefit before the Medicare premium is withheld.
Q. We know that everyday 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, nearly 1,700 dependent parents of deceased workers receive Social Security retirement benefits.
Q. When I receive my annual Social Security Statement showing the benefit I am eligible for at various ages, does this amount include my wife’s spousal benefit? If not, how can I determine what it is? And what impact does her age have on the benefit? Since she is 3 years younger than me, I’m assuming her spousal benefit will not begin until she reaches eligibility age.
A. A maximum Social Security spouse benefit is 50 percent of your full-retirement-age benefit. The extra 50 percent is not included in the benefit estimate shown on your Social Security Statement. The spouse benefit is paid in addition to the wage earner’s benefit.
A wife is eligible for a spouse benefit as early as age 62, but if the benefit begins before her full retirement age, it must be reduced for months of early retirement. If your wife’s full retirement age is 66, her spouse benefit at age 62 would be 35 percent of your full benefit. Regardless of the age at which she begins a spouse benefit, if she is full retirement age or more before being widowed, your wife’s monthly benefit would rise to the full benefit you would receive if still alive.
Q. I receive Social Security Disability but was claimed as a tax dependent. If that person passes away and I’m no longer claimed as their dependent will my Social Security disability rise or will it remain the same.
A. As a surviving divorced spouse (widow), you have the choice of which benefit to begin first — your own Social Security benefit or your widow’s benefit. You can begin a reduced widow’s benefit as early as age 60 (age 50 if you are disabled) and, if it is more advantageous for you to do so, switch to unreduced benefits on your own record at full retirement age or later. Your own benefit will reach its maximum at age 70.
You may begin benefits while continuing to work, but Social Security beneficiaries who have not yet reached their full retirement age are subject to an annual earnings limitation. In 2024, the limitation is $22,320. The Social Security Administration will withhold $1 in benefits for each $2 of excess earnings.
Before applying for any benefit, you will want to contact the Social Security Administration and obtain up-to-date estimates of the benefits payable on your own and your former husband’s earnings record. Ask for these estimates at your current age, full retirement age and age 70. That information will help you make the decision that is in your long-term best interest.
Q. I am nearing retirement age. I have to continue to work due to financial issues but am wondering if I could claim Social Security through my deceased, former husband now and then when I retire, claim benefits on my own record. I was married for 11 years and have never remarried.
A. Whether your Social Security benefit will increase when you are alone depends on the type of benefit you receive.
If you are receiving your own Social Security Disability Insurance (SSDI) benefit based on your personal earnings record, the only increase is annual cost-of-living adjustments (COLAs).
If you are receiving a Social Security Disabled Adult Child (DAC) benefit based on a parent’s Social Security earnings record, it would increase upon the death of the parent. During the parent’s lifetime, a dependent child receives a maximum of 50 percent of the parent’s full benefit. A surviving dependent child receives up to 75 percent of the parent’s full benefit.
Q. The Department of Child Support Enforcement started garnishing my Social Security Disability Insurance benefit for child support arrears they claim I owed. This began after my son graduated from high school and turned 18. I do not owe child support nor do I owe child support arrears. Can you please help me contact the Social Security Administration to stop this illegal garnishment of my small Social Security Disability benefit?
A. The Social Security Administration is obligated to honor a court order for garnishment of child support. To have the deductions ceased, you will have to petition the issuing court to rescind the order. This is a legal matter that must be resolved in a court.
Q. I’m 5 years older than my wife. We’re both still working and planning to continue for 3 or 4 more years. I’ve worked continuously and have a higher income. I want to ensure my wife receives the largest monthly payment if I die before we both reach 70. If I never claim, could she claim my “70-year-old” benefit when she reaches 70?
A. Should you predecease your wife, she would have the option of which benefit to begin first — her own benefit or her widow benefit. She would maximize her widow benefit by waiting until she reached full retirement age to apply for widow benefits. Under current law, she would gain no increase by deferring benefits beyond her full retirement age. Should you die before reaching full retirement age, your wife’s widow benefit would be calculated as if you had reached your full retirement age. If your death occurred between ages 66 and 70 (but before you begin benefits) your wife’s widow benefit would be calculated as of your last full month of life.
Q. Will I and my 16-year-old daughter continue to receive any part of my husband’s Social Security disability now that he has passed?
A. The Social Security Act provides two kinds of benefits to widows — retirement benefits and caregiver benefits. Young widows with dependent children in their care receive caregiver benefits until the youngest child reaches age 16. A dependent benefit to a child remains in effect until the child reaches age 18, age 19 if still in high school. A Disabled Adult Child can continue to receive dependent benefits for life if the child is disabled before age 22. A mother caring for a Disabled Adult Child remains entitled to a benefit as long as the child remains in her care. Other than the caregiver benefit, no monthly benefit is payable to a widow until she reaches retirement age. If you are unmarried, you will be eligible for a widow benefit based on your deceased husband’s Social Security earnings record when you reach age 60. As a disabled widow you would be eligible for a widow benefit as early as age 50. If you remarry after age 60 (50 if disabled) you will remain entitled to a widow benefit based on your first marriage.
Q. I was just wondering if we will get an increase on our Social Security next year or not?
A. In 2024, Social Security beneficiaries will receive a 3.2% Cost-of-Living Adjustment (COLA). That amounts to about $59 extra per month for the average Social Security beneficiary.
Q. If I apply for disability and become approved, will this affect my husband’s check and what about our son’s check?
A. Your eligibility for a Social Security benefit based on your own Social Security earnings record cannot affect your husband’s benefit in any way. If you each meet the law’s eligibility criteria, each of you is entitled to your full, earned benefit. Your son will continue to be entitled to a benefit based on his father’s Social Security earnings record unless a benefit payable on your earnings record or on your combined records would be a greater amount.
Q. I am retired and receiving Social Security benefits and am planning on getting married. My fiancée is still employed. What effect will this have on my Social Security benefits? Also I am wondering if I should be having taxes taken from my benefits.
A. Marriage or remarriage never affects a wage earner’s own Social Security benefit. Your Social Security benefit will continue unchanged. After one year of marriage, assuming they have reached retirement age, your spouse could be eligible for a spouse benefit. Death benefits would be payable if the marriage lasted at least nine months before ending in death — even less if death was accidental. With regard to having taxes taken from your Social Security benefits that can be done if you have determined you need to do so. The Social Security Administration allows withholding at four possible rates: 7, 10, 12 or 22 percent of your benefit.