Ask Larry

I wanted to get an early start on applying for Medicare A but I went to the wrong place and started Apply for Benefits. Has not been submitted but it says if they don't receive it by a certain date I will be penalized. I turn 65 soon so I can apply for Medicare A but I can't get social security for another year and some odd months. I cleared out as much info on the form I could so it will not submit. I can't delete it. Can't change the start date. what the heck to do.

Hi. When you start an online application for Medicare or monthly Social Security benefits, there is a question that asks if you want to apply just for Medicare and not for monthly benefits. If you answered that question wrong, then don't submit the application. The notice about a penalty is just telling you that if you don't submit your application before it expires, your application won't protect your filing date. It doesn't mean that you can't apply later, or that your benefit rate will be penalized.

As far as I know, you can't delete an online application once you've started it. But, as long as it isn't submitted it will expire after roughly 6 months with no harm done. I'm not an expert on the Social Security website, so I don't know if it will allow you to start a new application on which you could correctly answer that you only wish to apply for Medicare and not monthly Social Security benefits. If not, you can call Social Security and make an appointment to apply for Medicare either by phone or in person.

With regard to applying for monthly Social Security benefits, you should strongly 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

Im on supplemental security income and I won $2000 at casino, whats going to happen to my benefits & what should I do?

Hi. You're required to report your winnings to Social Security, so you should do so ASAP. Supplemental Security Income (SSI) is needs based, so any type of income you receive could reduce your SSI payment rate for at least one month. And, there is also a $2,000 asset limit for SSI eligibility, so your winnings could affect your eligibility for SSI payments as long as your countable assets exceed the $2,000 limit.

Best, Jerry

Hi Larry,
My husband was receiving his social security at his FRA when he passed away last August 2022. I was told that if I applied for survivor benefits at my age of 62, I would only receive 80% of his benefit. My question is if I wait to collect his benefit, would his social security benefit be affected by the cost of living allowances & increase or because he is deceased will the amount will stay the same? Thank you,

Hi. I'm sorry for your loss. Widow's benefit rates are increased by all Social Security cost of living (COLA) increases that occur after the deceased worker's death, regardless of whether or not the widow has started collecting benefits. So, if you delay collecting widow's benefits, your eventual widow's rate will still include all of the COLA increases that occur(ed) after your husband's death.

Since you don't mention your current age and whether or not you're working, I can't give you any specific advice about claiming benefits. If you have enough Social Security work credits to be eligible for your own benefits and if you haven't yet started drawing any benefits, though, your best filing strategy would likely be one of the following:

1) File for reduced widow's benefits as early as age 60 or as soon as your earnings will permit at least some benefits to be paid, then switch to your own record at age 70; or,
2) File for reduced retirement benefits on your own record as early as age 62 or as soon as your earnings will permit at least some benefits to be paid, then file for unreduced widow's benefits at full retirement age (FRA). However, if your husband collected reduced Social Security retirement benefits prior to his FRA, you'd want to apply for widow's benefits at some point before you reach FRA.

Normally, you would want to start out drawing the lower benefit first and then switch to the higher benefit when it reaches its highest potential rate. Our software (https://maximizemysocialsecurity.com/purchase) could help sort all of this out for you so that you can determine the best strategy for maximizing your benefits.

Best, Jerry

If I'm drawing 1886 a month from ss and I take a 25000 yr job how much less would payment be I collected at 63

Hi. Assuming that you'll be under your full retirement age (FRA) throughout 2023, then Social Security would need to withhold $1 of your benefits for each $2 that you earn in excess of $21,240 this year. They don't do that by reducing your monthly benefit amount, though. Instead, they suspend your benefit payments for as many months as it takes to withhold the required amount.

If you earn $25,000 this year, $1,880 of your benefits would need to be withheld (i.e. ($25000 - $21240)/2). Therefore, if your monthly benefit amount is $1,886, Social Security would need to withhold roughly one full month of your benefits. They would then pay you your regular monthly benefit amount for the other 11 months of 2023.

If you do plan to earn more than $21,240 this year, be sure to let Social Security know in advance. Otherwise, they won't find out until the year is over, in which case you'll end up with an overpayment of benefits that you'll be expected to repay.

Best, Jerry

I am writing about what, if anything, I can or should do regarding my pending Requests for Reconsideration (Form SSA-51-U2) filed with Social Security about why I have not been receiving the maximum monthly benefit. I have filed Requests for 2021, 2022, and 2023.

I believe that I should be receiving the maximum monthly benefit because (1) I deferred collecting Social Security until I reached 70 and (2) my earnings exceed Social Security's maximum taxable income for more than 35 years. For example, in 2023, I am receiving $ 4441.90 rather than the maximum of $ 4555.

I have spoken with a Social Security representative by phone on its 800 number and she agrees with me that I should be receiving the maximum monthly benefit. However, she advises that I must await a written response from the Social Security processing center. I have sent follow up letters and have not received any response. I have also made followup phone calls to the Social Security 800 number.

During the last call (on February 22, 2023), I was told that the Social Security processing center is reviewing the numbers; that messages were sent to the center in November and December (presumably in response to my correspondence and phone calls); and that nothing could be done until the processing center had completed and published its review.

I have been repeatedly told by Social Security's representatives at the 800 number that I cannot communicate directly with the processing center.

Is there anything that I can do to have Social Security address the substance of my request for the maximum monthly benefit?

Hi. Probably not. It's true that you can't contact the processing center directly, and it's true that the processing center has jurisdiction for making the reconsideration determination. The processing centers work cases essentially in the order that they are received, and there's almost always a substantial backlog.

The only thing that I could suggest trying 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 their constituents can sometimes speed up the processing of their case.

By the way, I don't know about the specific merits of your appeal, but there is no single "maximum Social Security benefit amount". The maximum possible benefit rate that a person could receive at any given time depends on their year of birth. Social Security retirement benefits are based on an average of a person's highest 35 years of Social Security covered wage-indexed earnings, and the factors used to index earnings are different for each year of birth. So, in other words, if 2 people had the exact same earnings histories but if they were born in different years, their indexed earnings and their highest potential benefit rate would be different.

Furthermore, people who continue working and paying into Social Security can potentially keep increasing their Social Security retirement benefit rate indefinitely. Retirement benefits can be recalculated after any year in which a person earns more than they did in one of their previous highest 35 years of indexed earnings. Therefore, the maximum possible benefit rate for each year of birth changes every year even before considering cost of living (COLA) increases.

Our software (https://maximizemysocialsecurity.com/purchase) includes a benefit calculator you can use to accurately calculate your benefit rate based on your year of birth and any projected future earnings that you expect.
The software also allows you to compare various filing strategies so that you can determine the best strategy for maximizing your benefits.

Best, Jerry

My wife took SS AT 62. I am applying for SS at 66, six months early to my FRA. If my wife does not apply for spousal now, will her spousal increase in the future? Or will it be based on my SS now when I apply ?

Hi. Your wife's spousal benefit rate would increase with all future Social Security cost of living (COLA) increases, regardless of whether she claims the benefits now or in the future. However, if she starts drawing spousal benefits prior to her full retirement age (FRA), the percentage reduction for age that would apply to her benefit rate would be permanent for as long as both of you are living.

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

My Birthday is 7/9/1961.
Applying on line. Question on have you been not able to work in the last 14 months. I choose no. It's giving me a error.
Says I need to choose yes. But should be no.

Hi. I'm not an expert on Social Security's online application process, but I do know that you aren't allowed to apply for benefits more than 4 months prior to the month that you want to start your benefits. If you were born on July 9 1961, the earliest month that you could qualify for Social Security retirement benefits is August 2023. You must be at least age 62 for a full calendar month in order to qualify for Social Security retirement benefits. So, if you're applying for retirement benefits, the earliest that you could file your application is April 1 2023.

The only way that you could apply for benefits based on your own earnings before April 2023 is if you're disabled and you're applying for Social Security disability benefits. So, assuming that you aren't disabled and that you're attempting to apply for retirement benefits, you'll need to wait at least until April to complete your application.

In the meantime, you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your options in order to determine your best strategy for maximizing your benefits.

Best, Jerry

Firstly, both of my parents have passed; one 12 years ago and the other 11 years ago. I am wondering if I can collect survivor benefits and do I need to be 60 yrs old to do so?

Hi. I'm sorry for your loss. The only way that you could collect survivor benefits from your parents' Social Security accounts is if you qualify for child or disabled adult child (DAC) benefits. To qualify, you would need to be a) unmarried, and b) either under age 18, or a full time high school student age 18 to 19, or be disabled due to an impairment that began prior to age 22 (https://www.ssa.gov/OP_Home/handbook/handbook.04/handbook-0410.html).

Best, Jerry

Hi Larry.
Can you tell me from which line on Tax form 1040 Schedule SE the Substantial Earnings are recorded by SSA?

Thanks, Steve

Hi Steve. On the current form Schedule SE, the amount recorded by Social Security is the smaller of line 6 or line 9, rounded up to the next dollar.

Best, Jerry

Hi, Larrry

My husband of 13 years passed away March 8, 2022. He retired with Social Security at full retirement age as far as I know. He was retired from the Navy after 20+ years of service. He drew a pension, VA disability benefits, and Social Security disability benefits.He was 73 when he passed. I will be 60 March 2023. According to a lady at our local Social Security office, I can draw $1,400 per month beginning in April 2023 (or wait to draw adding $6 per month that I defer widows benefits up to my FRA). However, I currently work full time and any benefits from SSA would be taken back from them because of my earnings.

I tried your program, but as he died after I had set it up, I couldn't add his death into the record for him.

I don't know if the lady told me correctly or not that my widow benefits would never be more than the $1,800 a month he drew (even if I postpone drawing on him until 70 and draw my own benefit first))

I know if I wait until 70 to draw my own benefit (which would be over $2K/mo) that my benefit value grows at about 8% per Year between my FRA and 70. Would my husbands benefit also grow if I took mine first and drew his at 70?. My FRA benefit would be over $1700/mo per last years SSA report.

How do I plan for retirement income or what if I can't work? I don't know truly what my SSA options are.

I don't want to make a costly mistake.

Thank you for listening and for any assistance you can provide.

Sincerely,

Grieving and stressed

Hi. I'm sorry for your loss. I answer questions submitted to the 'Ask Larry' forum, but I don't have access to our software customer records. So, I don't know whether or not you are a current subscriber to our software. What I will do, though, is forward your question to our software people who I'm sure will get back to you with more information. Or, you can resubmit your question using an online contact form available by clicking the help menu popup in the lower right hand corner of our home page.

Here is what I can tell you. It sounds like your best filing strategy would almost certainly be one of the following:
1) File for reduced widow's benefits at age 60 or as soon as your earnings will permit at least some benefits to be paid, then switch to your own record at age 70; or,
2) File for reduced retirement benefits on your own record at age 62 or as soon as your earnings will permit at least some benefits to be paid, then file for unreduced widow's benefits at full retirement age (FRA). Widow's benefits DO NOT increase if you wait past FRA to claim them.

Normally, you would want to start out drawing the lower benefit first and then switch to the higher benefit when it reaches its highest potential rate. So, if the benefit estimates in your question are accurate, you'd probably want to start collecting widow's benefits as soon as your earnings are low enough to allow you to be paid at least some benefits, then switch to your own record at age 70. Our software should be able to help you sort this all of this out for you so that you can determine the best strategy for maximizing your benefits.

Best, Jerry