Economic Security Planning, Inc.
Today’s column addresses questions about early spousal benefits before full retirement benefits, survivor benefits, which month to start benefits to avoid early filing reductions, unpaid Social Security and Medicare taxes and benefits on an ex’s record after remarriage. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc, which markets Maximize My Social Security and MaxiFi Planner.
See more Ask Larry answers here.
Have Social Security questions of your own you’d like answered? Ask Larry about Social Security here.
Can I Take Early Spousal Benefits And Still Get Full Social Security Retirement Benefits?
Hi Larry, My wife is eight years older than me and she filed and suspended just prior to the deadline in 2016 so she was grandfathered in when the new Budget Act closed the loophole. She waited until 70 to start drawing her retirement benefits. I am yet two years away from getting to full retirement age and my Social Security retirement benefit will be substantially more than hers when I reach full retirement. Can I draw spousal benefits now and then revert to mine when I reach full retirement age, or 70, without a reduction? Thanks, Phil
Hi Phil, No one can file for reduced spousal benefits prior to full retirement age (FRA) without being deemed to file for their own Social Security retirement benefits at the same time. And only people born prior to 1/2/1954 are allowed to file just for spousal benefits at or after FRA without also being deemed to file for their own retirement benefits.
Since you’re two years away from FRA, I assume that you were born in 1955 or 1956. Therefore, you could never file for spousal benefits without also filing for your own retirement benefits at the same time. The result would be that you’d be paid essentially just the higher of those two benefit rates, and your rate would be reduced for age if you start drawing prior to FRA.
It sounds like your probable best option might be to simply wait until 70 to file for your own retirement benefits, but you may want to use my company’s software — Maximize My Social Security or MaxiFi Planner — to fully explore all of your options so that you can decide for yourself. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry
Do I Get My Husband’s Social Security Payment If He Passes First?
Hi Larry, I am 69 and have not filed for Social Security. My husband is 73 and has a fairly decent Social Security retirement benefit payment. If I file, do I get a widow’s benefit if he passes first? My monthly payment estimate is $250. I pay $144 to Medicare. Which doesn’t leave much for me to live on. I could probably live in a cardboard box under a bridge if I can’t get a widow’s benefit. What can I do. Thanks, Erica
Hi Erica, It certainly sounds like you’d qualify for your husband’s full benefit rate as a widow in the event of his death, but without additional information I can’t say for sure. Furthermore, if you haven’t already filed for spousal benefits, you might want to do so immediately. Your spousal benefit rate does not get any higher if you wait past full retirement age (FRA) to start drawing. Best, Larry
What Month Do Choose If I Want To Receive An Unreduced Benefit?
Hi Larry, I am turning 66 in July and would like to file for my Social Security retirement benefit at my FRA. What month do I need to ask for on application to receive my first check without reduction for filing before FRA at 66? Thanks, Brad
Hi Brad, You’ll get your full unreduced primary insurance amount (PIA) if you choose to start your benefits effective July 2020. That’s the payment that Social Security pays in August. Best, Larry
How Should I Pay In The Social Security And Medicare Taxes I Owe?
Hi Larry, I am a school teacher. Our payroll system changed mid year 2019. At that time due to a program issue, no Social Security or Medicare taxes were withheld. How should I pay in the amount due? If on my tax return, what form do I use? All that I have found do not seem appropriate for my situation. Thanks, Rhonda
Hi Rhonda, If you’re an employee, then it’s your employer’s responsibility to withhold and pay any required Social Security and Medicare taxes. If your employer failed to withhold the appropriate taxes from your pay, then it would up to them to resolve the issue and take corrective action.
If your employer has determined that your wages are exempt from Social Security and Medicare taxes, then you wouldn’t owe those taxes and you couldn’t choose to voluntarily pay Social Security taxes in order to get Social Security credits. Teachers in some school districts are exempt from paying Social Security taxes on their wages, and instead contribute to retirement programs separate from Social Security. I don’t know if anything like that is involved in your situation, though.
You as an individual can’t report and pay the employee’s share of Social Security taxes on your tax return. The only way that you’d need to report and pay Social Security taxes on your tax return is if you’re self-employed. In some circumstances, employers consider people who work for them to be independent contractors, technically making them self-employed. I don’t know if that’s involved in your case, but if it is, then your employer should have issued you an IRS form 1099 showing the amount of non-employee compensation paid to you. You would then use a tax return Schedule C to calculate your net earnings from self-employment, and a Schedule SE to calculate the amount of self-employment, or Social Security/Medicare, tax owed. Best, Larry
If I Remarry, May I Continue Drawing My Divorced Spousal Social Security Benefits?
Hi Larry, I am 66 and divorced after 13 years of marriage. If I remarry, may I continue drawing the spousal benefits I’m currently getting based on my ex’s work history? Thanks, Danielle
Hi Danielle, That would not be possible, assuming that your new spouse isn’t drawing US Social Security widow(er)’s, mother’s, father’s, disabled adult child’s, divorced spouse’s, or parents benefits. Otherwise, divorced spousal benefit entitlement terminates effective the month of a person’s remarriage. However, divorced spouses can be entitled to survivor benefits on the record of a deceased ex-spouse even if they’ve remarried, but only if their remarriage occurs at age 60 or later. Best, Larry