We will select a portion of questions that are sent top us and have Social Security expert and author, Stanley A. Tomkiel, III, answer them in his new Quarterly Column, Please send email to ASKTHEEXPERT@SOCIALSECURITY.COM and remember to include your State of residence. Please remember that we can only answer a selected number of questions and those answers will appear on our website. No direct response will be sent to any individual. All responses are for informational purposes only. We are not responsible for the reliance on this information. Please review our disclaimer prior to submiting your question. To receive the Social Security Benefits Handbook written by Social Security expert and author, S.A. TomKiel Click Here. "Copyright 2002 Stanley A. Tomkiel, III All Rights Reserved"
To receive the Social Security Benefits Handbook written by Social Security expert and author, S.A. TomKeil Click Here.
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Question: Dear sir, I will be 65 years old in the year 2002 and I am still working. If I choose to take a reduced rate for the period I am working, and work until I am 67 years of age, will I then be raised to the amount I would have received had I not received any money at age 65, or will I be frozen at the rate I received at 65 years of age? Would someone please answer this question as I cannot receive an answer at our local social security office.
Answer: There is no reduction of the benefit for you if you begin taking it at age 65. If you get a benefit for a month before you turn 65, there is a slight reduction for each such month, 5/9 of 1 percent (or 1/180) for each month of entitlement before Full Retirement Age (age 65 for you, but increasing in two-month increments per year beginning with those born in 1938 and later -1940 for widows). The reduction factor for benefits before 65 may be eliminated after 65 if you did not get a full monthly benefit for such a month. Additionally, you will get an increase for any month after age 65 you do not get any benefits because of work deductions. This is called the Delayed Retirement Credit. For those turning 65 in 2002- 2003 it is 13/24 of 1% of your primary insurance amount (6.5% for a full year). You should go to your social security office immediately to file a "protective filing statement" and request an estimate of your benefit amount. Frequently, workers can get unexpected benefits, but it is crucial to protect your filing date.
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Question: I was wondering, my husband is 67, soon to be 68 and is still working. He hasn't applied for his SS as of yet. What I was wondering is - if he applied now would he get back pay to when he was 65 or to when he first applied?
Answer: His application for benefits can be retroactive for only 6 months from the date of filing. Please note that if he had ever filed a protective filing statement that would act as the filing date even if he didn't file an application. I recommend that everyone who is over 62 file a protective filing statement with Social Security periodically so as to make sure you collect all possible benefits. You should also note that under a recent change in the law, there is no earnings limit if you are over 65, so your husband should file his application immediately.
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Question: I will be 62 on March 5, 2003 and will file to collect SS. Because my birth date falls after 1937 will I have to wait an additional 2 months or does this only apply if you file at age 65? Thanks for your help.
Answer: You can still collect at 62 (or more precisely, beginning with the month you will be age 62 "throughout the month" - in your case April), but your benefit will be reduced an extra 8 months (not 2). Because you were born in 1941, your "Full Retirement Age" is age 65 and eight months.
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Question: I have heard that the eligibility requirements have changed. I am 56 today and my birthday is in December. If I elect to take social security at age 62, what is the earliest date I can apply for benefits? I also heard that only the last three years are being considered as eligible wages. How does that really work? Are the last three years of wages "averaged" and then that figure used as the income against which to calculate one's monthly social security check? Many thanks!
Answer: You may apply three months before you turn 62.
As a general rule, benefits are based on the highest 35 out of the last
40 years of earnings and are "indexed" for inflation. Also note
that benefits are actuarially reduced ("reduced for age") if received
before "Full Retirement Age" - formerly age 65, but now gradually
increasing in steps.
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QUESTION
When do I stop paying Income Tax on my social security ?
Is there a maximum age limit when I can earn as much as I want without paying Income tax on my SS. Thanks.
ANSWER
You know what they say about death and taxes - they are the only two things in life you can count on! There is no age limit when you stop being liable for taxes on your benefits. The taxes are payable only if your income exceeds the applicable minimums, which vary depending on filing status and amount of income. You may be thinking of the earnings limits for retirement benefits. After you reach Full Retirement Age- previously age 65, but now increasing in two-months increments- your earnings will not cause your ss benefits to be reduced. But you are always liable for taxes on SS income if over the applicable limits. And you must pay SS tax and income tax on the wages. Forever and ever.
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QUESTION
People are asking for your social security number for everything
now. I was even asked for it to rent a movie but refused to give it to them. Please tell me who has the right to request the number.
For those who do not have the right to request it, do they have the right to refuse me service, credit, etc. if I don't give it to them?
Thank you,
ANSWER
Social Security numbers may be used by anyone for lawful purposes. Some non-Social Security organizations are authorized specifically to use SS numbers, such as banks, state government agencies, parent locator services, other federal agencies, etc. Other users, such as the video store, may request your number for a lawful purpose, such as identifying customers and keeping records, but you may refuse to give it. However, the store can refuse to do business with you. The SS number has become a sort of national registration number, and there's really nothing we can do about it. But I'm sure you know that you should be careful who you give the number to, because it can be misused in many ways, including "identity theft" where a criminal sets up accounts in your name and the next thing you know you're listed as a deadbeat or worse.
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QUESTION
THERE IS A GROUP CALLED NOTCHES THAT CONTACTED MY MOTHER SAYING THEY WERE
TRYING TO REGAIN MONEY NOT BEING PAID TO PEOPLE BORN BETWEEN 1919 AND1927 IS
THIS TRUE?
ANSWER
The so-called "Notch" issue has been exploited by several groups trying to make a hullabalu (and raise some money from donations) for many years. Whatever you do, don't let Mom send any of her money! This has long been a dead issue that has already been looked into by Congress in the early 90's. In a nutshell, the concern arises because of a Carter-era change in the law that adjusted the calculation of benefits to slow down large increases that arose due to a 1972 law that provided for automatic Cost of Livimng increases. The high inflation rates of the 70's caused a windfall for those born after 1910, resulting in such high benefits that the financial integrity of the system was threatened. Congress provided for a re-calculation and phased it in over a transitional period for those born between 1917 and 1921. Over time, benefit amounts again increased as younger workers reached retirement age because their earnings subject to SS tax were higher, both because of inflation and because the maximum taxable earnings were increased to provide more tax revenue. For those born by 1927 or so the levels reached the pre-1917 level. If you made a chart plotting benefit amounts over time by year of birth, those born before 1917 had higher benefits, and those born after 1921 had gradually rising benefits, thereby creating a "notch" effect, and giving rise to the term "notch babies." This re-adjustment was a rational fix for the system. It did not deprive anyone of their money, rather it eliminated an overly generous system, relatively speaking. Don't forget, SS is a social insurance system, not some kind of annuity. Most beneficiaries, especially the older ones, including the "notch babies," have gotten more out of the system than they would have from a private annuity. That was, and continues to be, one of the problems with the system.
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QUESTION
HOW DO THEY DETERMINE THE AMOUNT OF YOUR SOCIAL SECURITY CHECKS. IS IT BASED
UPON YOUR THREE (3) HIGHEST YEARS OR THREE (3) LAST YEARS. WHAT BASIS?
ANSWER
SS uses the highest 35 years, and indexes the earings to account for
inflation over the years, determines an average monthly figure and your
benefit is based on a percentage of that. The percentage used is higher
for lower average wages and lower for higher average wages, so that the
poor get more of their average wages, and the rich get less, based on the
idea that the poor need more than the rich. For example, for year 2002,
a worker at age 65 with low monthly average indexed earnings of $1045 would
receive an unreduced retirement benefit of $682 monthly, or about 65%. A
worker with maximum earnings of $4770 would receive an unreduced monthly
benefit of $1660 or about 35%. While I'm at it, the figures for average
wages and high wages are: $1127 and $1467, respectively. These numbers demonstrate
that you should not count on SS as your sole source of retirement income.
The program was never designed for that. SS was designed to provide only
about a third of retirement income, with the rest coming from private pensions
and savings. But the best social security is that provided by the kids and
grandkids, you know, payback time!
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QUESTION
My husband will soon turn 65 he is all ready receiving Social Security what we want to know is how medicare works. He doesn't have any insurance he goes the the VA doctor and hospital for any treatment.
Thank you for any help
ANSWER
At age 65 your husband will be eligible for Medicare. This insurance
pays for hospitalization and for physician fees. The hospitalization coverage,
called Part A, pays for in-patient hospital costs after you pay the deductible
($812 as of 2002), and for skilled nursing care after the hospital. All
beneficiaries of monthly benefits are elibible for this without charge,
as well as all those (including spouses) who have 40 quarters of coverage,
even if they do not receive benefits. Others who have not worked in covered
employment can buy the coverage, but it is very expensive. Part B, which
covers 80% of physician fees after an annual deductible ($100), is optional
because there is a monthly premium charge of $54 per month as of 2002. You
must enroll in Part B during an enrollment period, and this is done for
your husband automatically because he is already getting benefits. He will
receive a Medicare card about three months before he turns 65. If he doesn't
want the Part B coverage, he must send back a response form that comes with
the card. For those applying for SS at the same time as Medicare, they must
apply before the month they reach 65, or otherwise the start date for the
Part B coverage will be delayed. And you will be eligible for Medicare on
your husband's account when you turn 65. And your husband will be able to
select the physicians and hospitals of his choosing when he has the Medicare
coverage. Many doctors will accept the 80% Medicare coverage as payment
in full.
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QUESTION
My father collects Social Security, he was just declared legally blind, do
his benefits increase? Thanks
ANSWER
Sorry to hear about your dad. If he is under 65 he can apply for disability benefits on the basis of the blindness, and his benefits will be recalculated and paid on an unreduced basis. If he is over 65, the benefits would be no higher. Disability benefits are available only under age 65.
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To receive the Social Security Benefits Handbook written by Social Security expert and author, S.A. TomKeil Click Here.
QUESTION
How do I handle this.
I have a common law husband and he is 58 now, I am only 46.
I was wondering what we need to do as we approach retirement age.
Do I have to file any forms, change my name, whatnot.
ANSWER
Going through with a ceremonial marriage would be best. "Common law husband" means, in most states, no husband. The laws of all but a dozen states have long ago abolished common law marriage. SS does recognize a common law marriage only if the state in which it was contracted recognizes such a marriage. To be valid in those few states that recognize it, there must be a true intent to be married, not just an intent to live together till further notice, and the parties must be free to marry. Prior marriage, if not lawfully terminated, will bar a common law marriage. It can be very difficult to prove common law marriage, especially if one party is deceased. Simply "living with" entitles you to nothing but major headaches. SS does not recognize a simple "living together" relationship as valid for wife's or widow's benefits. The time is ripe to head for the preacher and make it legal.
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To receive the Social Security Benefits Handbook written by Social Security expert and author, S.A. TomKeil Click Here.
QUESTION
I am a teacher and my doctor says I shouldn't be working because of an
illness. He said I can collect disability. My question..Am I entitled to
disability as a teacher in a public school system? Thank you for your kind
consideration.
ANSWER
If your employment is covered by SS you may be eligible for disability benefits if you meet the work and medical requirements. Not all public employees are covered by SS. If you have FICA deductions from your paycheck you are in the regular SS system. If your employment is not covered by SS, your public employment benefits most like will provide a disability pension.
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QUESTION
I just had a baby Tues. June 5th. This is my first child and I don't know
how to obtain or even try to obtain a social security number for my child or
a card. I would appreciate it if u could let me know what I have to do.
Thank you
ANSWER
Congratulations! If you want to obtain a SS number for your new darling, you must contact the Social Security Administration. They have a toll free number, 1-800-772-1213. You will need the birth certificate. You must complete a form, an SS-5. You can download this from http://www.ssa.gov/online/ss-5.html. You will have to make a personal visit to the SS office. You can find the nearest office by calling the toll free number or on line at: http://www.ssa.gov/locator/ You must bring an original certified copy of the birth certificate with you.
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Can a SSD recipient become a board member of a non-for profit organization
without losing benefits -- no salary would be received for this position and
it is a way of doing something worth living for instead of doing nothing at
all. Please advise, thank u
ANSWER
You should not have a problem with this. The issue for SS Disability is whether or not you are performing Substantial Gainful Activity. This is defined as wages over $740 per month. Earnings less than this, or services you render worth less than this, will not affect your continued entitlement.
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QUESTION
I was married for 33 yrs. if i remarry, will i still be able to draw my first huband's s.s?
ANSWER
You do not say how the marriage ended, or if your first husband is alive.
If you were divorced you may receive benefits on his account because you
were married for more than ten years. If he is alive, your benefits will
terminate on re-marriage. If he is deceased, re-marriage after age 60 will
not affect benefits on his account.
To receive the Social Security Benefits Handbook written by Social Security
expert and author, S.A. TomKeil Click Here.
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QUESTION:
I need to apply for Social Security Disability benefits. Can you tell me what I need to do, and whether I can do it via phone or on the internet? Thank You.
ANSWER:
You cannot apply for disability benefits online, unlike retirement benefits.
Some district offices may make arrangements for telephone interviews. You
must go to your local SS office and bring the names and addresses of all
your treating doctors. You should also bring the names and addresses of
all hospitals and facilities where tests were done. You should be prepared
with the dates you last worked, when you were hospitalized, when tests were
done, when you saw which doctors. They will ask you about your past work
experience and education, and your current physical activities. They want
very detailed answers to get a picture of your functional capacity, the
physical requirements of your occupation, and your ability to transfer job
skills to other occupations if you can no longer do your regular job. You
should bring your last year's W-2 and birth certificate. If you receive
worker's compensation you will have to provide them with that information
as well.
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QUESTION
My husband has been diagnosed with alzheimers. Is this considered a disability? He is 69 years old. If it is a disability, can he receive additional income? Joyce
ANSWER
Sorry to hear about your husband's health problems. Unfortunately, disability
benefits are not paid beyond age 65 even if the person is disabled.
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Q: My son was receiving survivor benefits after his father passed away. His benefits stopped when he turned 19, even though he was in learning disability in high school and did not graduate until the June before he turned 20 in August. Should he have received the benefits until he graduated high school?
A: The benefits continue only to the end of the semester in which the child turns 19. But if the child is totally disabled from doing any substantial gainful work, benefits may continue for as long as the disability lasts.
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Q: MY HUSBANDS NEPHEW HAS UNFORTUNATELY LOST BOTH HIS PARENTS WITHIN THE LAST FEW YEARS & IS COLLECTING SOCIAL SECURITY & HIS FRATERNAL GRANDMOTHER HAS CUSTODY OF HIM AS OF NOW. OUR NEPHEW HAS APPROACHED US & WANTS TO LIVE WITH US. THAT IS NO PROBLEM, BUT MY QUESTION IS, IF WE LEGALLY ADOPT HIM SO THAT HE COULD BE COVERED UNDER MY HEALTH INSURANCE, DENTAL & OPTICAL , WOULD HE STILL RECEIVE THE SOCIAL SECURITY BENEFITS TO BE PUT AWAY FOR COLLEGE & EMERGENCIES, OR DO WE HAVE TO KEEP JUST CUSTODY OF HIM SO HE DOESN'T LOSE HIS S.S. BENEFITS. HE IS CURRENTLY 13 YEARS OLD. THANK YOU FOR YOUR CONSIDERATION TO THIS MATTER.
A: Adoption does not terminate child's benefits once they are established, so your nephew will continue to be entitled to his SS benefits even after the adoption. Best wishes for you and your nephew. God bless you.
To receive the Social Security Benefits Handbook written by Social Security expert and author, S.A. TomKeil Click Here.
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Q: Hello,
My daughter is 15 her natural father passed away 1/99. She has been adopted by my current husband on 9/91. My husband was able to adopt her on the grounds of abandoment.Her natural father never paid his child support. Is she eligible for Social Security benefits?
A: Your daughter cannot collect on the deceased's account because she was adopted by your husband before the father's death, and therefore is not considered to be the father's dependent. But if the natural father was living with the child or supporting the child she could collect on his account, but that is not the case here. Another exception is if the deceased had been entitled to disability under SS up until his death or entitlement to retirement benefits. Otherwise your daughter cannot collect on the natural father's account.
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Q: I UNDERSTAND THAT BEFORE THE NEW LAW WAS PASSED, ALLOWING ANYONE OVER 65 TO EARN UNLIMITED AMOUNT OF INCOME, THAT THERE WAS A LIMIT TO THE AMOUNT OF MONEY YOU COULD EARN BETWEEN THE AGES AF 65 AND 70. I ALSO UNDERSTAND THAT UNDER THE OLD LAW IF YOU RETIRED IN THE MIDDLE OF THE YEAR YOU COULD ONLY EARN AROUND $700.00 A MONTH BEFORE SOME OF YOUR S.S.MONEY WAS WITHHELD UNDER THE NEW LAW, AT AGE 65 YOU CAN RETIRE AND STILL WORK AND MAKE UNLIMITED AMOUNT OF MONEY. MY QUESTION IS:UNDER THE NEW LAW IF I RETIRE IN THE MIDDLE OF THE YEAR,SAY JUNE,HOW MUCH MONEY CAN I EARN PER MONTH, UNTIL THE END OF THE YEAR?IS THIS AMOUNT UNLIMITED ALSO?
THANKS
A: Beginning with the year 2000, when you reach 65, there is no limit on earnings beginning with the month you reach age 65. If you earn less than $17,000 for the months in the year before 65, you can receive benefits for the whole year (if you apply) or if your pre-65 calendar year earnings exceed $17,000 for the months prior to attaining age 65, one dollar in benefits will be withheld for every $3 in earnings above the limit, for the pre-65 months only, but you may receive benefits for any month you earn less than$1,417 no matter how high the calendar year pre-65 earnings.
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Q:My doctor has made me quit work and told me to apply for my disability benefits. I have a small 401K plan and I need to know if that would interfere with being able to qualify. I have been told that it would. My husband also has a small 401K plan.
A: Your assets such as savings and 401K's have no effect on your entitlement to social security benefits, (SSI is different- see below) because this is a social insurance program based on your "contributions" (payroll taxes) to the system. If you meet the "insured status" requirements for disability, and are "totally disabled" you may be eligible. You should definitely follow your doctor's orders and apply. If you are turned down on the first application, do not give up, because you have the right to a reconsideration and then a hearing. Frequently, claims that are denied at the first application and reconsideration are approved after a hearing where you attend before a judge in person with an attorney. Attorneys who take social security cases generally accept contingence fees, which means you pay them only if you win.
There are asset limitations for SSI (Supplemental Security Income) payments, which are a federally funded welfare program for the disabled, blind and elderly and which is also administered by the Socail Security Administration. Many people get confused because regular social security disability benefits are referred to as SSDI (social security disability insurance).
To receive the Social Security Benefits Handbook written by Social Security expert and author, S.A. TomKeil Click Here.
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Q:My mother just recently passed away, and she was receiving social security benefits. I have been told by several people, that since my mother passed away, and that I am a full time college student, that I can receive supplemental security. Is this true?
A: I am sorry to hear about the loss of your Mom. Unfortunately, you may not collect social security benefits any longer as a college student unless you are under age 18. The law only allows continuation of benefits for secondary school (not college) students till age 19 while still in high school. You asked about "supplemental" benefits. I think you are confusing terms here, which many people do. Supplemental Security Income (SSI) is a federal welfare program for the disabled (of any age, including children), elderly (65+) and the blind. These benefits are administered by the Social Security Administration, but the benefits comes from general federal tax revenues, not the social security payroll taxes or funds. Additionally many states supplement the SSI payments. Social Security benefits are paid based on a wage earner's "contributions" (government-speak for payroll taxes) and are paid at retirement or disability to the wage earner and dependents, and at death to surviving spouse and minor children. At one time these benefits could continue till age 22 for full time college students, but the law changed several years ago. Sorry, dear.
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Q:I was married just short of 11 years to my former husband. I remarried 4 years later, but divorced #2 within 2 years. I have been unmarried now for more than 20 years. Husband #1 remarried shortly after our divorce, and both he and his wife are now retired. He and I are the same age.
When I start to collect social security at age 65, must I collect on my earnings only, or can I collect against husband #1? I was married to him more than the 10 year requirement, and he made a lot more money than I ever did. Or am I not eligible to collect against his social security because of his new wife, or because I once remarried for a short period of time?
A: You may collect benefits on your ex-husband's account even though he re-married and you re-married, because your second marriage has ended. To be eligible as an ex-wife you need only be unmarried when you apply. Of course you must meet the other requirements that apply to wife benefits, such as him being eligible and your benefit on your own account being less than one-half of his. As you noted, your marriage to the worker had to last at least 10 years, which yours did. By the way, you don't have to wait till age 65 to collect. You may collect at age 62, if your earnings permit, providing that he is also at least 62.
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Q:My husband has recently retired at age 58 because of cancer. He received a recent Social Security Statement (May 24, 2000) in which it summarizes correctly that he began work in 1963. It is not clear to us what his earned benefit will be at age 62 since he actually left the workforce prior to age 62. He has earned 144 credits over his lifetime. Bottom line, - what will his social security benefit be per month at age 62?
A: First of all, he may be eligible for ss disability benefits if he cannot work. The amount would be the same as if he were age 65. I would suggest you apply for them now and not wait till 62. The maximum ss retirement benefit at age 65 is now, for those turning 65 this year, approximately $1,433, plus another half of that for a wife age 65.At age 62 the benefit is approximately 80% of the full age 65 benefit, but this is shrinking slightly every two years because of the gradual increase in Full Retirement Age. For those born in 1942, such as your husband, there will be an additional 10 months of reduction, because for him Full Retirement Age will be age 65, 10 months. The extra reduction months are calculated at 5/12 of 1 percent, in addition to the 20 percent reduction, and for your husband would be a tad more than 24 percent total, so he would get about $1,085 at todays rates at age 62. But if he is approved for disability, he would get the unreduced amount of approximately $1,433. These figures are just approximations and assume maximum earnings.
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Q: I am 16 years old and my father is 67 years old and retired. My father receives extra money from Social Security because I am still his dependent, and we were informed that if I were to start working and earn a paycheck, that his extra money from Social Security would be cut off. Because of this information, I cannot work and earn a measily teenager's paycheck.. Recently, I was informed that a law had passed which stated that retired people from ages 65 to 69 could earn as much income as they wanted without it interfering with Social Security benefits. Is this true, and if so, does this mean that I can now work without my father's extra benefits being cut off?
A: It's true that your earnings affect the child's benefit your father receives on your behalf as a minor child, but your earnings will not affect his own benefit. If your earnings exceed $9,600 per year for 2000 then you would lose 1 dollar for each 2 dollars over the limit. Under the new change in the law your father's earnings will have no effect on his benefits because he is over 65, but you are still subject to the earnings test. But note that if you are making a "measly teenager's" pay of under $9,600 for the year, it will have no effect on the child's benefit.
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Q: I was wondering, my husband is 67, soon to be 68 and is still working. He hasn't applied for his SS as of yet. What I was wondering is if he applied now would he get back pay to when he was 65 or to when he first applied.
A: His application for benefits can be retroactive for only 6 months from the date of filing. Please note that if he had ever filed a protective filing statement that would act as the filing date even if he didn't file an application. I reccomend that everyone who is over 62 file a protective filing statement with Social Security periodically so as to make sure you collect all possible benefits. See the Social Security Benefits Handbook, Section 402 "The Protective Filing Statement." You should also note that under a recent change in the law, there is no earnings limit if you are over 65, so your husband should file his application immediately.
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Q: WHEN CAN AN E-WIFE DRAW SOCIAL SECURITY FROM THEIR X-SPOUSE? DO YOU HAVE TO HAVE BEEN MARRIED FOR A CERTAIN AMOUNT OF YEARS ? IS THERE A TIME FROM TIME LINE TO THE TIME OF DIVORCE TILL THE TIME YOU CAN DRAW? iF SPOUSE WAS MARRIED WITH CHILDREN PREVIOUS DOES - IS THAT THE ONLY ONE WHO CAN DRAW ON SS BENEFITS.
A: A divorced wife who was married to the ex for at least 10 years before the divorce became final -- you cannot add up years from a previous marriage to the same man-- can collect a divorced wife's benefit at age 62 if she is unmarried and her benefit on her own work record is not higher. Please note that even if the ex has not retired, the wife can collect on his account if he otherwise would be eligible- i.e. age 62 with enough work credits. But you must be divorced at least 2 years before the application to collect when the ex is still working. The two year requirement does not apply if the ex is retired.
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Q: I have been married for 20 years before my husband and I got a divorce. Two years ago, I remarried. When I reach 62 years of age, in two more years, am I eligible to claim social security benefits from my former husband. Thank you.
A: No, only as a wife under your new husband's account.
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Q: 1. What is the maximum monthly payment a retiree can recieve from SocialSecurity?
2. What income is required for a retiree to qualify for the maximummonthly social security payment?
You answers will be greatly appreciated Thank you
A: 1) The maximum retirement benefit for a wage earner turning 65 this year, before any reduction for age (benefits are reduced a small percentage - 5/9 of 1% - for each month of entitlement before the month of attainment of age 65) is $1,433.
2) The current maximum earnings subject to FICA tax ( the official name for the ss tax) is $76,200. Please note that the formula for computing the benefit include 35 years. The maximum eranings have increased significantly over the last 4 decades. For example, the maximum FICA taxable earnings in 1960 was $4,800.
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Q: I will be 62 on March 5, 2001 and will file to collect SS. Because my birth date falls after 1937 will I have to wait an additional 2 months or does this only apply if you file at age 65. Thanks for your help.
A: You can still collect at 62 (or more precisely, beginning with the month you will be age 62 "throughout the month" - in your case April) but your benefit will be reduced an extra two months because for you "Full Retirement Age" is 65, and two months.
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Q: I have a question for you - I live in the State of Idaho, have lived with my boyfriend for 17 years - we are not legally married, although Idaho did have a common law for years, was recently ruled out just a few years ago. My boyfriend (who has never been legally married) and I have bought our home and property together, it's all in both of our names. My question is, am I eligible - should anything happen to him, to receive benefits? thank you so much
A : If the law of the state where you live does not recognize your relationship as a legal marriage, neither does Social Security. You are not eligible for any benefits on his account unless you "tie the knot." After 17 years are you still keeping your options open? If you are not eligible for benefits on your own work record, you stand to lose a lot of money in social security benefits that you may otherwise collect as a legal wife or widow.
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Q :My father has a quick question regarding SSI. Can he collect unemployment while he is on SSI?. Thank you
A : SSI is a needs- based federal program administered by SS Administration- All income is taken into account and affects the SSI benefit. He may be entitled to collect both, but if the unemployment is more than the SSI, the SSI will be suspended or reduced while he collects the unemployment.
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Q: If you are self employed how do you pay your ss tax.
A: With your income tax return, directly to the IRS.
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Q: Questions my husband received a SS statement of earnings. I haven't is this because I moved to ILL 5 years ago. I work so this would not make sense to me ? What do I need to do ? >>
A: SS just started a national program to mail earning statements to all workers over age 25, but they are doing it gradually, based on your month of birth. You should get your statement about three months before your birthday. You may request it on line at: http://www.ssa.gov/mystatement/index.htm
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Q: My father passed away in 1983. At the time there was a younger sibling that received benefits because she was young. My mother is now 57 years old. When does she begin collecting Survivor benefits?
A: Your mother may collect as an "aged widow" at age 60.
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Q: I have heard that the eligibility requirements have changed. I am 56 today and my birthday is in December. If I elect to take social security at age 62, what is the earliest date I can apply for benefits? I also heard that only the last three years are being considered as eligible wages. How does that really work? Are the last three years of wages "averaged" and then that figure used as the income against which to calculate one's monthly social security check? Many thanks!
A: You may apply three months before you turn 62. As a general rule, benefits are based on the highest 35 out of the last 40 years of earnings and are "indexed" for inflation. A full discussion of the method is found in the Social Security Benefits Handbook. Also note that benefits are actuarily reduced if received before "Full Retirement Age" - formerly age 65, but now gradually increasing.
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Q : My husband has not been able to work for quite some time now due to a rare chronic disease. He is 42 years old. In August, 1999 he began the long process of applying for disability benefits. On December 18, 1999, he received a letter from SS denying him benefits. He is now in the process of filing a "Reconsideration". Today he got a phone call from his place of work stating if he does not come back to work by February 9, 2000, he will be terminated. They do not have to hold his job for him any longer than 12 months. Since he is very sick, but has a family to support, he will be FORCED back to work. Will the Reconsideration continue even if he is forced back to work? I would appreciate any help you can give me.
A : Yes keep going, many cases are won at later appeal stages. The return to work may prove unsuccessful and may be disregarded by social security if it lasts no more that three months, sometimes longer in certain situations. I discuss these "unsuccessful work attempts" in my book, Social Security Benefits Handbook.
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Q : I am collecting social security disability because of multiple
sclerosis. I've been offered a part time job, but need to know how much
money I can make without losing my soc. sec. disability.
A : Earnings as an employee averaging: Over $700 a month (this was $500 before July '99) will ordinarily demonstrate that an individual engaged in substantial gainful activity, and that benefits should stop. Less than $300 a month will ordinarily demonstrate that an individual has not engaged in substantial gainful activity, and benefits will continue. Between $300 and $700 a month will require that consideration be given to all circumstances related to the work activity. See my book for a full discussion. EXCEPTION: Earnings of $700 a month or less in a sheltered workshop or similar facility will ordinarily demonstrate that an individual has not engaged in substantial gainful activity.
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Q :My friend filed a disability claim about three months ago, he has not recieved an answer as to whether he was approved or denied. Is there a certian amount of time that social security has to give an answer?
A : It usually takes at least three months. NOTE- even if you are denied, request a Reconsideration and the a Hearing if necessary. Disability claims are often denied the first time but then are won on appeal. Get a lawyer if you are denied the first time.
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Q : I saw an article in a local paper saying: the law "extends for 4 1/2 years, Medicare coverage for those in the disability insurance system who return to work. Disability Beneficiaries returning to the work force would get a voucher to purchase health care services either private or government. The law also increases to 550,000 the number of disabled people who will receive rehabilitation and training services over the next 10 years." Is this a law that Clinton has signed and is actively on the books and accessable to disabled people returning to the work force now? Or is this a proposed law yet to be signed and made law and may never get passes?
A : The law - called the Ticket to Work Act- was signed last month but will not operate for a year and then on a trial basis in different regions. I am sure you will hear a lot about it in the, around election time.
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Q :Hi, am a housewife and have been for 22 of my 24 years of marriage. I have begun to worry about my social security benefits because I haven't paid in very many quarters. I would estimate that I have only paid in 3 or 4 years worth of quarters. What happens to me at social security retirement time. Will I quailify for benefits both social security and medicare? I have heard that my husband covers me in this with his work history but I want to be sure ? Thank you for your attention to this very important concern of mine.
A : Don't worry, because you are entitled to wife's benefits on your husband's account. Because you are married more than 10 years, these benefits are "vested"- you get them even if you become divorced, God forbid. You are entitled to one-half of your husband's primary insurance amount, the amount he would receive at age 65. If you are under Full Retirement Age when you become eligible, the benefit is reduced for each month before age 65. For those born in 1938 (1940 for widows), two extra months are added - Full Retirement Age is age 65, and two months. The FRA increases each year after that according to a schedule. For a complete discussion see The Social Security Benefits Handbook (my book) available through this website. You are eligible for Wife's benefits at age 62, but only if your husband is receiving benefits. If he should die you are eligible for widow's benefts beginning with age 60, but again these benefits are reduced if you are under Full Retirement Age. Unlike the wife's benefit, the unreduced widow's benefit is equal to your husband's full benefit.
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Q : How would I go about finding out how much I have put towards my social security and how much the government or employers have matched me? Is there a form that you could send me?
A : In October 1999, the Social Security Administration began sending a Social Security Statement automatically to workers age 25 or older who are not yet getting Social Security benefits. Your Statement will arrive about 3 months before your birthday. In the future, you will get an updated Statement about the same time each year. You can also request a Statement at any time. In your Statement, you will see a year-by-year display of earnings that have been reported to your Social Security record. You will also find estimates of the benefits you and your family may be eligible for now and in the future. You will receive a response to your Statement request by U.S. mail in 2-3 weeks. The Statement response will include: A complete earnings and Social Security tax history; and Estimates of retirement, survivors, and disability benefits. You may request a Statement by calling or visiting your local SS office, by calling toll-free to 1-800-772-1213, or online at http://www.ssa.gov/mystatement/index.htm
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Q : DEAR SIR, I WILL BE 65 YEARS OLD IN THE YEAR 2000 AND I AM STILL WORKING, IF I CHOOSE TO TAKE A REDUCED RATE FOR THE PERIOD I AM WORKING, AND WORK UNTIL I AM 67 YEARS OF AGE, WILL I THEN BE RAISED TO THE AMOUNT I WOULD HAVE RECEIVED HAD I NOT RECEIVED ANY MONEY AT AGE 65, OR WILL I BE FROZEN AT THE RATE I RECEIVED AT 65 YEARS OF AGE? WOULD SOMEONE PLEASE ANSWER THIS QUESTION AS I CANNOT RECEIVE AN ANSWER AT OUR LOCAL SOCIAL SECURITY OFFICE.
A : There is no reduction of the benefit for you if you begin taking it at age 65. If you get a benefit for a month before you turn 65, there is a slight reduction for each such month, 5/9 of 1 percent (or 1/180) for each month of entitlement before Full Retirement Age (age 65 for you, but increasing in two-month increments per year beginning with those born in 1938 and later (1940 for widows). The reduction factor for benefits before 65 may be eliminated after 65 if you did not get a full monthly benefit for such a month. Additionally, you will get an increase for any month after age 65 you do not get any benefits because of work deductions. This is called the Delayed Retirement Credit. For those turning 65 in 2000-2001 it is 1/2 of 1% of your primary insurance amount (6% for a full year). You should go to your social security office immediately- during January- to file a "protective filing statement" and request an eatimate of your benefit amount. Frequently, workers can get unexpected benefits, but January is a crucial month to protect your filing date.
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Q : i am considering retirement iwithin the next 6 months from a full time position i hold in the insurance field. I also own a small retail business with my business partner. how will the profits i earn from my business affect my social security benefits?
A : Your earnings from a business, whether as wages or self-employment
income will affect your benefits just as any other earned income would,
if you are under age 70. If you are under 65, you lose one benefit dollar
for the calendar year for each two dollars over the annual exempt amount.
If you are 65 through 69, you lose one benefits dollar for every three dollars
over the exempt amount, which is higher for those over 65. At age 70, earnings
have no effect on benefits. For 2000 the under 65 annual exempt amount is
$10,080, for those 65 through 69 it is $17,000. I don't know your age, but
if you are under 65 your application when you file it may have limits on
how much retroactive benefits you may be able to pick up, and even if you
are 65+ there are limits on retroactivity. Many applicants would be able
to get extra benefits they didn't expect if they had filed sooner, or protected
their filing dates, but lose that money. I would suggest you file a "protective
filing statement" during the month of January. This may save you thousands
of dollars. See my article "The Protective Filing Statement Can Save
You Thousands of Dollars" at this website under the connection "Exclusive
Article." A full discussion is found in my book The Social Security
Benefits Handbook." A WORD OF WARNING-- when you own a business, SS
will put your statements about your income and retirement allegations under
a microscope. They will go on the assumption that you are lying to understate
your income and they will request a detailed written statement from you.
They will verify what you say by contacting customers and/or suppliers,
and frequently pay surreptitious visits to your place of business, posing
as a vendor or customer. My book also has a full discussion of this and
what steps you can take to avoid honest mistakes in this sensitive area.
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Q : Hello, My 401(k) plan administrator informed me that if there were ever incorrect information on my social security record, I have only three years to find and correct the problem. Basically, what he is telling me is that it is up to me personally to check my record periodically for mistakes or possible fraud because if I don't fix it within three years it will remain on my record. Is this statement true? I had my Social Security card stolen about one year ago, and although I reported it stolen, it seems that this "three year" law could pose potential problems in the future. In what type of situation do you recommend that one changes their social security number?
A : Your administrator has correctly stated the general rule (almost- it is 3 years, 3 months and 15 days) but there may be exceptions to the time limit, for example in the case of fraud, or a clerical error. It is important to review your earnings record at least every three years. Social Security has just made this a lot easier by mailing every worker over 25 a statement of their earning once a year. This program just began, but you should get the statement about 3 months before your birthday. You may also request it be sent to you.
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Q : I am entitled to my ex-husbands social security. Somebody told me they take the last 5 years of his income. What if he doesn't show any work history for the last 5 years but he has worked the last 40 years? Can I still collect part of his?
A : Yes- if you are otherwise eligible. SS drops the lowest 5 years in calculating the benefit amount. As long as the worker has at least 40 quarters of coverage -and this can be spread out, it doesn't have to be consecutive- he or she is eligible for benefits, and this includes ex-wives if they meet the other requirements, such as being at least 10 years before the divorce. Once eligibility is established, then the amount of the benefit is computed, and that's where the five years low earnings are dropped- Note- there are different rules for disability benefits
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Q : I need information on entitlement and termination rules for step-children, who draw social security disability. I need to know if laws have changed to say, step-children no longer entitled if mother and step-father are divorced. I pullled up 1995 laws, and there is suppose to be an amendment after 1995, that states no longer entitled but, I cannot find this, it's very important. I need this as soon as possible. Thank you for your time.
A : Current regulations do not provide for termination upon divorce- so benefits should continue
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Q : My grandson's mother died. His father, my son, became the official parent. However, the step father set up and received the child's social security benefits. How was this possible without some form of proof citing him as the legal custodian? And how do I go about rectifying this injustice? The child chose to stay with his step father, but he spends just as much time with me. I should say here, the boy is fifteen years old.
A : Your son as the natural father would have preference over the step-father for purposes of being the payee for a minor child, provided he "demostrates strong concern for the child's wellbeing." He must go to the SS office with proof of the relationship and if he contributes support, proof of that as well. He must apply to be the representative payee.
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Q : Hi my dad passed away and he was collecting social security is there a death benefit?
A : Sorry to hear about your Dad. There is a $255 death payment but it goes to the surviving spouse. If there is none then it goes to the children who are eligible for survivor benefits on his account. These benefits are paid to children under 18 or adult disabled children. If there is no spouse or eligible children, no death benefit is payable.
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Q : Could you please tell me what the maximum salary that social security benefits are paid on for the year 1999 and for the year 2000 also? Thank you for your attention to this question.
A : The maximum earnings subject to the FICA tax (the SS tax) are $72,600 in 1999 and $76,200 in 2000. Note that the Medicare portion (1.45%) has no limit. The maximun benefit per month for workers turning 65 is $1,373 for 1999 and $1,433 for 2000.
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Q : I am an 18 year old college student, and i have lost my social security card. i was wondering if you could give me some information such as a telephone number that i could call to get a new one. i am sorry for the simpleness of my question, but any help you could offer would be much appreciated. thank you very much for your time.
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A : Don't apologize for simple questions, usually the smartest people ask them. You may call Social Security at 1-800-772-1213 nationwide, toll free. But leave yourself a good chunk of time to get through. You may also visit your local Social Security office, but make sure you bring ID
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Q : I received a check a few months ago for reimbursement of my medicare
deductions from Part B however my husband did not receive any check . My
problem is that I have called 4or5 numbers and they pass me on to different
agencies. Can you help me locate the proper agency.
A : When you get a run-around, call your congressman and/or senator. They have personnel to deal with constituent problems like this, and will make inquiries for you. Their inquiries get promt attention. Make sure you let the congressman's office know you have tried on your own and not even gotten a response.
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Q : I have a question that you maybe able to help my wife and I. My wife has had two individual mastectomies four years apart. After the last procedure she has been in constant pain and is seeing a psychologist on a regular basis to help her deal with the emotional and physical pain. She was granted social security disability benefits in October 1998 retroactive to April 1998. We used the services of an attorney that specializes in this area. She was informed at that time that her case would be reviewed in February of 2000. She is in constant pain die to lymphodema and cannot drive for more than 30 minutes at a time nor lift anything more than 5 Lbs. She is 57 years old, a registered nurse and wondering if her review will continue her benefits.I guess my questions to you are the following: should we employ an attorney for the review if it is denied and what do you think her chances are for continuation of benefits. Does she have a right of appeal if denied? and do her benefits continue while the appeal process is being reviewed? Any suggestions you may have would be very much appreciated. Thank you so much for your suggestions and help in this matter.
A : Your wife's benefits will not likely be cut-off unless she has regained a capacity to work in substantial gainful employment. From the way you have described her physical capacity, it does not appear she can work. I would never tell you not to retain an attorney, but I will tell you to make sure the one you retain has significant expertise in this arcane area of law. If the decision is made to stop her benefits, you have the right to a reconsideration, and a hearing before an administrative law judge, as well as further appeals to the Appeals Council, and then review by a federal court. If you are cut -off you may request that benefits continue pending the outcome of the appeal, but this continuation only goes through the hearing level. You MUST REQUEST THE CONTINUATION OF BENEFITS WITHIN 10 DAYS after the termination notice! If you ultimately lose on appeal, you may have to repay the money, but may also be eligible for a waiver of the overpayment. God be with you and your wife.
"Copyright 2002 Stanley A. Tomkiel, III All Rights Reserved"
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