Ask Larry

I've been on SSDI for almost 4 years. I started working as a Independent Contractor as a sports official. It's seasonal work. I get paid 2-3 times per season. One check may be $400 the next $1200. I keep all my work schedules showing what I have worked. In no month have I made over $900. I make sure I never get near the SGA amount. My concern is SSA is now wanting information on my employment. Could this be a problem?

Hi. It's certainly possible. When you receive Social Security disability (SSDI) benefits, there are limits on how much work for earnings that you can perform without losing your benefits. Initially, you get a 9-month trial work period (TWP) during which you can do any amount of work and earn any amount of money without losing your benefits. However, after your TWP is completed then you can't do work that Social Security defines as substantial gainful activity (SGA) without causing your SSDI benefits to be suspended or terminated.

Since you're working as an independent contractor, Social Security will evaluate your work based on the rules applied to self-employed individuals. The SGA rules for people who are self-employed consider a number of factors in addition to the dollar amounts that the person receives for their work. There are 3 SGA tests that Social Security considers when deciding whether or not a person's self-employment is SGA (https://secure.ssa.gov/apps10/poms.nsf/lnx/0410510010#b).

The first is whether or not the person is performing significant services for a substantial income. Basically, that just means that if the person's net self-employment earnings average over the SGA and if they perform physical or mental services to produce those earnings, then they are performing SGA. The second test is whether or not the person's services are comparable to the services performed by unimpaired individuals in the same community engaged in the same or similar businesses as their means of livelihood. And the third test is whether or not the worth of the services performed by the disabled person exceeds the SGA earnings guidelines, regardless of the amount of income that the person actually receives.

The reason that Social Security looks beyond a person's actual earnings when evaluating self-employment is because the amount of self-employment income that a self-employed individual receives does not necessarily accurately reflect the amount of work that they actually perform. For example, a self-employed farmer could work full-time or more while suffering a net loss from their business due to weather conditions or grain prices.

For specific information on how Social Security applies the 3 SGA tests for self-employed individuals, refer to the following references from Social Security's operations manual: https://secure.ssa.gov/apps10/poms.nsf/lnx/0410510015 & https://secure.ssa.gov/apps10/poms.nsf/lnx/0410510020.

Best, Jerry

Hello, Larry. My wife and I used your book when we first applied for SS benefits. I was born in 1952, and submitted for my own benefit at full retirement age of 66 in 2018. My wife was born in 1953, and she reached full retirement age in 2019 we decided she should submit for a spousal benefit. Now, in 2023, she will be 70 in June. Since she did not file for her own benefit back in 2019, we anticipated that she can now apply for her own benefit, which in theory should have continued accruing value. Is she allowed under current SS rules to do that?Thank you very much for any guidance you care to offer, and thanks again for the great book.

Hi. Yes. However, filing for her own benefits would only increase your wife's total benefit rate if her own benefit amount is higher than her spousal amount. It it is, she'd start receiving her own higher amount and her spousal benefits would stop. If not, then her spousal benefit would be reduced dollar for dollar by the amount of her own benefit, leaving her with the same total benefit rate.

Best, Jerry

Dear Larry,

My spouse of 9 years collects Social Security benefits on his deceased partner's income. There is a 35 year age difference between us. My spouse has a terminal illness but is doing good so far. However, I don't know what to expect when he passes. I am in my 40s. What should I expect in terms of payment when I reach retirement age? His deceased partner got the top benefit. I do not as I am as work for a government agency. Is there anything I should do now?

Thank you,

Paul

Hi Paul. Social Security could never pay you any of the benefits that your spouse collects from his deceased partner's Social Security account. The only type of monthly Social Security survivor benefits from your spouse for which you might qualify would be benefits based on your spouse's earnings history (i.e. widower benefits). Unless you have a child in your care who is eligible for benefits on your spouse's account, the earliest that you could potentially qualify for widower benefits is at age 60, or at age 50 if you're disabled (https://www.ssa.gov/OP_Home/handbook/handbook.04/handbook-0401.html).

How much you could expect to receive as a widower depends on your spouse's earnings history. But, if you're collecting a government pension that's based on your earnings that were exempt from Social Security taxes, then any survivor benefits for which you'd otherwise qualify would likely be offset by 2/3rds of the amount of your government pension (https://www.ssa.gov/pubs/EN-05-10007.pdf). And, that could reduce your survivor benefit rate to zero depending on the comparative amounts of your Social Security survivor benefit and the government pension.

Regardless of your age when your spouse dies, though, you may qualify a one-time death benefit of $255 (https://www.ssa.gov/OP_Home/handbook/handbook.04/handbook-0430.html). You would need to apply for that benefit when the time comes.

Best, Jerry

I started taking my SS at age 70- two years ago. My wife will begin taking hers at age 70 this month. In December we discovered she was eligible to receive spousal benefits of 50% of my benefit at predicted age 66 retirement. We contacted SS and they retro actively gave her 6 months of spousal benefits- but said they couldn't give her spousal benefits between the time I started taking SS at age 70 (Feb. 2021) and May 2022- ~ 13 months. Is there anything we can do to receive those approximately 13 months of spousal benefits that were denied?

Thank you

John

Hi John. If you listed your wife on your application when you applied for benefits, then that would have established a protective filing date for your wife. Assuming that you did list your spouse on your application and unless Social Security closed out that protective filing date by sending your spouse a 6-month closeout letter, then your wife should be allowed to use your filing date as her filing date for spousal benefits. That would allow her spousal benefits to start effective with your first month of benefit entitlement.

You could attempt to hash this out with Social Security informally, but if your wife is still within the 60 day appeals period then the more effective course of action would likely be for her to file a formal appeal request (https://www.ssa.gov/apply/appeal-decision-we-made/request-reconsideration). On your wife's request for appeal she'll want to call Social Security's attention to section GN 00204.010C.1 of Social Security's operations manual (https://secure.ssa.gov/apps10/poms.nsf/lnx/0200204010#c).

Best, Jerry

I am 40 years old and receive SSI for disability I am divorced and my ex-husband is now remarried if he receives Social Security Disability am I entitled to any of his social security

Hi. No, at least not right away. The earliest that you could qualify for divorced spousal benefits while your ex is living is age 62. But, if your ex dies, you could potentially qualify for surviving divorced spousal benefits as early as age 50. However, you'll only be able to qualify for either divorced spousal or survivor benefits if your marriage to your ex-spouse lasted for at least 10 years.

Best, Jerry

My brother , DOB August, 1955, passed in May 2022. He had been on disability then social security when he reached FRA at 66+2 months. His ex wife, DOB May, 1957, has not filed for her social security which would be much less than her ex husband's benefit when he died. They were married longer than 10 years, Her part time income is well below what is allowed to work and receive benefits. What documents will she need as an ex wife and when should she file? Thank you.

Hi. I'm sorry for your loss. The best filing strategy for someone who potentially qualifies for both survivor benefits and their own benefits depends on a number of different factors. All that I can really tell you based on the limited information in your question is that if your brother's ex was born in May of 1957, then she wouldn't want to wait past July of 2023 to claim survivor benefits. However, her best filing strategy before or after that would depend on how her survivor rate compares to her own Social Security retirement benefit rate. It sounds like your brother's ex-spouse should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of her options so that she can determine her best strategy for maximizing her benefits.

As far as what documents will be needed, in most cases the only document needed when applying for divorced spousal benefits is a certified copy of the divorce decree. However, if the divorce decree doesn't show the date of marriage, then a marriage certificate would also be required.

Best, Jerry

Can I send a copy of my ID and when I'm asking for replacement card

Hi. No, Social Security won't accept photocopied documents. You may want to refer to the following Social Security website for instructions on obtaining a replacement Social Security card: https://www.ssa.gov/ssnumber/replace_your_card.html.

Best, Jerry

How to get refund of double paid medicare Part B premium?
I have double paid medicare part B premium on August 2022, so far I have not yet received the refund; on your article you suggest just be patient and wait, and the refund will eventually arrived. I have been waiting for over 6 months already; so what can I do to get refund of my double paid premium? Thanks for your help.

Hi. Any duplicate Part B Medicare premiums withheld from a person's Social Security benefits should be refunded to them automatically. If they aren't, your only recourse is to follow up with Social Security. There is no form that you can submit to make a formal request for a refund.

One thing that you could try, though, is to contact the offices of your U.S. congressional representative or one of your U.S. senators. Inquiries received by Social Security from members of Congress on behalf of one of their constituents can often expedite the resolution of their problem.

Best, Jerry

Hi Larry,
I have been on social Security disability since 1997. I am 62 and got married 12 years ago and was blessed with a daughter who is now nine years old. I recently found out about auxiliary benefits and contacted SSA and now await monthly payments for her. What I would like to know is will they pay a lump sum retro-active to when she was born in 2013? If not, why?

Thanking you in advance for your help.

Hi. No. One of the requirements for benefit entitlement is filing an application (https://www.ssa.gov/OP_Home/handbook/handbook.03/handbook-0323.html). And, benefits payable to children on the account of a parent who is receiving Social Security disability (SSDI) benefits can only be paid retroactively for up to 12 months prior to the month of the child's application (https://www.ssa.gov/OP_Home/handbook/handbook.15/handbook-1513.html). So, unless an earlier protective filing date was established for your daughter, her back pay would be limited to 12 months prior to the month you applied for benefits on her behalf.

Best, Jerry

My wife wants to start collecting spousal benefits as she never worked. She is 62. I want to continue working. I understand I can no longer file and suspend. Everything I read says I must be COLLECTING Social Security benefits in order for my wife to receive spousal benefits. I do not want to retire yet as I am only 65. So my question is if I continue working and file for Social Security, and I make 65k/ year, when I pay back $1 for every $2 over the maximum earnings (approximately 20k) meaning I will not receive any Social Security payments at this time. Can my wife still receive her spousal benefits, even though I am technically not receiving any Social Security but yet I filed. No one seems to address this question specifically. Thank you.

Hi. No. For any months that your benefits are withheld due to your earnings, your wife's spousal benefits would also be withheld. Withholding of benefits due to the earnings test applies to all benefits paid on the worker's record, including spousal and child benefits.

For example, say Bob files for benefits this year at age 62, and his 62 year old spouse also files for spousal benefits on his account. Bob's full retirement age (FRA) benefit rate would be $2000, but his rate is reduced to $1400 because he's filing at age 62. Bob's wife's full retirement age spousal benefit rate would be $1000, or half of Bob's FRA rate, but since she is also filing at age 62 her rate is reduced to $650. Bob is still working and will earn $62,240 in 2023.

The earnings test would require that $1 of the benefits payable from Bob's account be withheld for each $2 that he earns in excess of $21,240 this year. That would require withholding a total of $20,500 (i.e. ($62,240-$21,240)/2) in benefits. Bob and his wife's monthly benefits total $2,050 (i.e. $1400 + $650), so based on Bob's 2023 earnings both his and his wife's benefits would need to be withheld for 10 months (i.e. $20,500/$2050) before any benefits could be paid to either of them for the current year.

It sounds like you 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 your best strategy for maximizing benefits for you and your wife.

Best, Jerry