Ask Larry

my job is being eliminated and I am receiving a small severance package. Will I be taxed on that amount?

Hi. I'm sorry, but my expertise is limited to Social Security benefits. I'm not able to answer questions about income tax regulations.

Best, Jerry

Hello Larry,
I recently applied for SS at 62 along with benefits for my eight yr old son.
Both were approved, however my wife being 42 and legally married to me for 10 years, was denied spouse benefits under my work record because she does't have a ssn or
green card. At first she was approved for 50% of my FRA. amount being that she is a stay at home wife and mother until he is 16 but then denied. Should I appeal ?

Hi. It isn't clear from your description whether your wife's claim was disallowed, or if she her claim was approved but her benefits were placed in suspense due to her immigration status. The requirements for receiving child in care spousal benefits depend on such factors as your wife's country of citizenship and residence. In any case, it wouldn't hurt for her to file an appeal in order to have the facts of her case reviewed by someone who wasn't involved in the original determination. There is no financial cost involved in filing an appeal unless you hire someone to represent you, which is not required (https://www.ssa.gov/apply/appeal-decision-we-made).

Best, Jerry

I'm a widow drawing disability on my deceased husband. If my adult daughter gets approved for disability on her Dad, will it cut my check in half?

Hi. If your daughter qualifies for disabled adult child's (DAC) benefits on your husband's Social Security record it won't cut your disabled widow's benefits (DWB) in half, but it could reduce the amount you receive. How much of a reduction might occur would depend on the family maximum benefit (FMB) amount that can be paid on your husband's account. You may want to try calling Social Security for an answer since they are the only people with access to your husband's Social Security records.

Best, Jerry

What political party came up with the bill that allows a wife to collect on her husband's social security at 62 but delay collecting on hers till she reaches max age of 67-70 years old? To me this is double dipping and will bankrupt social security faster.

Hi. I think you might be mistaken about Social Security regulations. Spouses have never been allowed to collect spousal benefits at age 62 on the record of a living spouse while waiting until later to claim their own benefits, unless they have a child in their care who is eligible for benefits. However, widows and widowers can claim survivor benefits as early as age 60 while waiting to claim their own benefits at a later age.

The Social Security Act was passed into law by Congress in 1935, and was amended in 1939 to include spousal, child, and survivor benefits. Benefit payments started in 1940, and various amendments to the Act have been passed by subsequent congresses. I don't know the political affiliations of the members of Congress who voted for or against the Social Security Act or it's amendments.

Best, Jerry

if my wife chooses to receive her own social security benefits 57 months before her full retirement age. Her own benefit will be 71.25 percent of her primary insurance amount. What percent of spousal benefit will she receive when me, the higher earning spouse retires?

Will it be 50% of my benefit, or 50% minus of mine minus the reduction based on her date of filing for her own?

Hi. Your wife's unreduced spousal amount would be calculated by subtracting her primary insurance amount (PIA) from 50% of your PIA. A person's PIA is equal to their Social Security retirement benefit rate if they start drawing their benefits at full retirement age (FRA). If your wife is at least full retirement age (FRA) when you start drawing your benefits then she'd get the unreduced spousal amount plus her own reduced benefit amount. But, if you start drawing your benefits before your wife reaches FRA, then her spousal rate would be reduced for age based on her age at the time you start drawing your benefits.

It sounds like you and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your various options so that you can determine the best overall strategy for maximizing your benefits.

Best, Jerry

I am 75. I delayed filing until age 70 and currently receive around the maximum benefit, $4500 per month.

My spouse is 60 and qualifies on her own work record. If I die in the next year could she file for reduced benefits on her record at 62 and then apply for survivors benefit at age 67 and get 100% of my current benefit(adjusted for cost of living)?

If I am still alive in a few years, could she also file for reduced benefits on her record at 62 and then apply for survivors benefit at age 67 and get 100% of my current benefit(adjusted for cost of living)?

Thank you

Hi. Yes, and yes. Any reduction for age applied to your wife's own benefit rate would not carry over to her widow's benefit rate. As long as your wife doesn't start drawing widow's benefits prior to her full retirement age (FRA), then if she's widowed she'd be eligible for 100% of your benefit rate inclusive of any delayed retirement credits (DRC) you accrued by waiting past your FRA to start drawing benefits. Just to be clear, though, your widow couldn't be paid both her own benefit and your full amount, just the higher of the two benefit rates.

Before filing for benefits, your wife may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of her various options in order to determine her best filing strategy for maximizing benefits.

Best, Jerry

I turn 68 in April, if I don't apply for social security until I turn 70 in 2025, will I still get the 8.7% increase for 2023 ?

Hi. Yes. Social Security retirement benefit rates for everyone born prior to January 2 1961 will be credited with the recent 8.7% cost of living (COLA) increase no matter when they start collecting benefits.

Best, Jerry

Hi - father with disability is receiving SSDI $1,500, his two children are receiving $600 for both, one of the children is turning 18, how will the benefit be affected, go away? The child is not disabled and not in school. Thank you

Hi. Once a child turns age 18 they can only remain eligible for child benefits if they are either still in high school or they are disabled. So, it sounds like the child turning age 18 in your example will stop receiving benefits effective with the month they reach age 18.

However, based on the benefit amounts cited in your question, when the older child turns age 18 his or her benefit amount will be redistributed to the younger child. In other words, the younger child's monthly rate would then increase to $600. Children receiving benefits on the account of of living parent can be paid as much as 50% of the parent's primary insurance amount (PIA). But, there is a family maximum benefit (FMB) amount that can limit a child's actual benefit rate to less than their full benefit rate.

Apparently, in this case the father's PIA is $1500 and the FMB is $2100. That leaves $600 available to be paid to eligible family members. With 2 children eligible, they would split the $600 and be paid $300 each. But, if only one child is eligible for benefits, they'd receive the full $600 available based on the FMB.

Best, Jerry

Hello, I have been receiving my SS benefits since my husband passed away in July 2020. I realized that I could be receiving more under my husband's
name. When I called the SS office; I was told I can only receive his benefits for the past 9 months instead of when he passed away. Do you know
if that is true or not? Kind Regards, Karen

Hi Karen. I'm sorry for your loss. Actually, the limit on payment of retroactive widow's benefits is 6 months prior to the date you file your application. And, if you're under full retirement age (FRA) then you may not be able to claim any retroactive benefits. The only way that you could be paid benefits for more than six months prior to the month in which you apply is if you established some type of earlier protective filing date (https://secure.ssa.gov/apps10/poms.nsf/lnx/0200204010#b).

Furthermore, since you're apparently already collecting your own benefits you could only qualify for additional survivor benefits if your survivor benefit rate is higher than your own benefit rate. If you're under your FRA, then the best time for you to claim survivor benefits depends on a number of different variables, so you may want to consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your options so that you can determine your best strategy for maximizing your benefits.

Best, Jerry

I am over 70 and still employed. Both my wife and I have health benefits from my employer. She turns 65 in Dec of this year at which time she will start on Medicare, PartB and PartD. My question is can I voluntarily give up my employer health benefit In Dec and qualify for a special enrollment period so I can sign up for PartB and PartD (already on Medicare) without a penalty. I do not not want to retire in Dec, I just want to switch fully to Medicare from my qualified employer health plan.

Thanks

Hi. As long as you've been an active employee since reaching age 65 and you've been covered by a qualified employer group health plan (EGHP) with at least 20 employees, then you're eligible to sign up for Parts B & D of Medicare without any penalty regardless of whether or not you give up your EGHP coverage. Whether or not you can voluntarily drop your EGHP coverage depends on the terms of your EGHP policy.

If you do drop your EGHP coverage, though, you would have 8 months in which to enroll in Parts B & D of Medicare without being charged a late filing penalty. However, you would need to apply no later than the first month that you no longer have EGHP coverage in order to avoid a gap in coverage. Refer to the following Social Security website for more information: https://www.ssa.gov/help/iClaim_medSEP.html.

Best, Jerry