Social Security may be one of your largest assets. What and when you collect will make a huge difference to your lifetime benefits.
Today's Ask Larry column examines filing online, the availability of disability benefits and the effects of the new law among other topics.
You can submit a question by clicking on the link on our homepage at Maximize My Social Security.
Can I File Online Just For a Spousal Benefit?
Larry, I am about reach age 66 and have filled out the application online to file online for spousal benefits, delaying my own until age 70. I have read Get What's Yours so I'm nervous about signing and completing the application for fear they will use some retroactive date. Should I say something in the remarks section about the date I want to start my benefits? Thanks, JR
Dear JR, as far as I know, you cannot file online just for a spousal benefit. You will, I believe, need to go into your local office and file there. And yes, you need to state in the Remarks section of the form you file that you are restricting your application solely to your spousal benefit and you will not be collecting your own retirement benefit until age 70. I presume that a) you are divorced after having been married for 10 years and that your ex is at least 62 and that you have been divorced for at least two years or your ex has filed for his/her retirement benefit or b) you are married and your spouse is currently collecting a spousal benefit or suspended his/her retirement benefit before or on the April 29, 2016 deadline. Otherwise, you can't file just for a spousal benefit.
If the person filling out the paper work won't let you fill out the Remarks section yourself, demand to see what she/he writes in that section and make sure it's what I just said needs to be there.
Please tape record all you conversations with Social Security whether on the phone or in person. This way you will have proof of what you requested if they make a mistake, which is occurring on a routine basis these days. Best, Larry
I Need Help Filing For Disability Benefits
Dear Larry, I am currently 58 and will be 59 in 2 months in 2016. I have worked as a RN FT for 15 years and then only sporadically for a few years (I was in graduate school) then I had a child with some severe medical problems (landing him in the ICU twice and he later became lead poisoned and has ADHD so his problems throughout his childhood had limited me to PT work). I became disabled and unable to work in 2010; had terrible symptoms of severe spinal stenosis (cervical and lumbar) as well as SI joint dysfunction but wasn't officially diagnosed (my doctors had only used the diagnosis of "lumbago) for 3 years (when I was finally approved for medical assistance and got an MRI) when I was told to get to surgery immediately.
I filed for SSDI with an attorney and was denied. I was to go before an administrative judge but was running late (by about 10 minutes) due to traffic and so called the attorney (whom I'd never met- the office switched around attorneys and assistants so often that it was difficult to know who was actually representing me). He told me not to bother parking as the judge dismissed the case because I was late. I later learned that the judge wouldn't see the attorney (apparently to even tell him that I was parking) as he was not the attorney of record and so then dismissed the case. The law office filed an appeal but the original decision of the judge was upheld but I don't know why. A legal assistant just called me and said they did all that could be done and I never heard from them again.
I re-applied within a year and have a different law office representing me but they have not mentioned re-opening the former case (I didn't know that could be done until this evening). They have also said that because I haven't worked since 2010- (and that I worked PT prior to that for some years because of my son's difficulties) that they (Soc Sec) were only looking at a limited amount of time on which to base my benefit should I be granted SSDI at this juncture. I was denied this time as well because Soc Sec said that I can do sedentary work. I have a date to go before an administrative judge once again just after I turn 59.
It doesn't appear to me that I qualify because I am not using a walker. I use a cane frequently but I just limit where I go- avoiding anywhere that I may not be able to sit down- due to severe pain in my legs and weakness. The very nature of the disease process indicates a poor prognosis as it worsens with time (and age). My pain level (and I've been denied pain medication beyond gabapentin and ibuprofen because of practitioners' fear of the DEA with our "war on drugs") is severe and has been for 6 years. It prevents me from leaving my home frequently or completing simple tasks such as even making dinner quite often. My son and I have been surviving on child support alone for the last 6 years but he will turn 18 in March and will no longer receive it.
I am panicking a bit because if I don't receive SSDI- I have no idea what I'm going to do. My savings have been completely depleted as it was necessary to supplement the child support. My attorney has told me not to pursue any work while I'm waiting to hear about the outcome of this filing. I have said that I could manage probably 2 hours a day on some days but no more than that because sitting for longer limits me. I would be most grateful for your advice on how to proceed. I am also wondering why my previous filing wasn't re-opened. Wouldn't that help me with a higher benefit rate (if I am approved this time)?
Thank you ever so much! Tamara
Dear Tamara, I feel terrible about your situation. I would seek to collect food stamps and welfare benefits and SSI, for yourself, if you are eligible. I would also contact all my members of Congress and explain the situation. They may be able to help. Best of luck. Our country should not be treating people in your situation this way. My best, Larry
I Missed The File and Suspend Deadline. What Do We Do Now?
Hello Larry, I have purchased and read the new edition of your book. It may be my question is so simple it never gets explicitly highlighted or clearly addressed. Regardless, I need to know for sure. There has been so much made over file & suspend and the new laws that what I think is (and was) best for us never really gets emphasized, either before or after the new law took place.
I am 67 and the larger wage earner. My wife just turned 66. It seems to be what makes most sense for us is for her to now file for her FRA benefit and for me to file a restricted application (with written comments as you recommend on p. 73) so I get free spousal benefits from her filing. Then, at age 70, I file for myself and she takes the spousal benefit from me which will be higher than her own FRA benefit. Is there any reason we would want to do something other than this? And, if so, what would be the preferable alternative(s)?
Thanks! Arthur
Dear Arthur, you should have filed and suspended before April 30, 2016. In that case your wife could be collecting a full spousal benefit starting now (equal to half of your full retirement benefit) and then you both could have waited till 70 to take your retirement benefits. If you, like so many other people, were misled about the deadline by Social Security, I recommend you contact your members of Congress and ask them to ask Social Security to let you file and suspend retroactive to April 29, 2016. Someone I know was misled by Social Security about the deadline and was able to suspend retroactively. He had help from his Congressman. But it's still remarkable since it was his word against Social Security's.
What you should do now is to run expert software. It's not clear if you should file early or your wife. In the former case, she'll be able to collect larger spousal benefits for more years, but it will come at the cost of permanently lower retirement benefits for you and, therefore, permanently lower widow benefits if you pass away. If she files early, you'll collect lower spousal benefits for only 3 years and her retirement benefit will be permanently reduced. Neither of these options may beat your both waiting till 70 to collect you maximum retirement benefits. So please see what the program suggests. It's far smarter than me. My best, Larry
Is Social Security Mis-Estimating My Future Benefit?
Dear Larry, I was estimating my benefit at 66 & 2 months through age 70, by increasing the estimated benefit by 8% each year. However, at 70, the amount is $55 less than the figure provided by the SSA. Is this simply due to rounding? Thank you, Paul
Dear Paul, that's far too big for a rounding error. Social Security benefit estimator may be incorporating what's called the Re-computation of Benefits if you've told it you will still be working and if your future earnings raises your level of AIME (Average Indexed Monthly Earnings). Social Security's benefit estimators assume no future economy-wide average wage growth, no future inflation, and that you will retire at full retirement age. I recommend you run expert software that makes none of these assumptions to understand precisely what you will get. Best, Larry
Foreign Worker -- Can I Collect?
Hi Larry, I am from and live in Honduras, from April 1 2000 to April 30 2009 I worked with Work Permit for a company in New York. Due to the company not being able to continue in business due to the bad economy I was laid off. During that period of time I accumulated 40 credits of Social Security. After several months being unemployed and also beginning to feel sick having no health insurance, I came back to Honduras where I got really sick. In October I will turn 62. Am I entitled to any type of benefit from the Social Security? I appreciate your attention to this question. Than You Very Much, Marco
Dear Marco, I see no reason why you can't collect. In addition, your wife and young or disabled children should be able to collect on your work record as well. I would contact the U.S. Embassy in Honduras. You may, by the way, want to wait till 70 to collect a much higher annual payment. This will also maximize the widow benefit for your wife. My best, Lary
Can I Collect a Full Divorced Spousal Benefit and Then Go For My Retirement Benefit?
Dear Larry, I am 63 in August. My divorce was final March 22,2016. I am able to collect off my ex after March 22, 2018. I will be 64 1/2. That would be about $1300.00 per month. Then when I turn 66 I plan to collect my own, that would be $1558.00 per month. I receive $2000.00 per month in alimony. What are the social security tax ramifications and or percentage of SSI that would be taxed? Thank you, Lisa
Dear Lisa, if you ex has filed for his retirement benefit, you can collect a reduced divorced spousal benefit starting immediately, i.e., you don't have to be divorced for two years. (Your ex has to be at least 62 in either case.) But if you file for your divorced spousal benefit before full retirement age (66 in your case), you will be deemed to be filing for your own retirement benefit as well. In this case, you'll receive a reduced retirement benefit and a reduced excess divorced spousal benefit, which may be zero.
In short, you cannot do what you plan to do. Your best strategy is probably to wait till 66 to take just for divorced spousal benefit and then wait till 70 to take your own retirement benefit. Please run expert software as what's best will depend on your maximum age of life.
Re taxes, if your alimony is taxable, which I presume it is, you will likely have to pay taxes on 50 percent of your Social Security benefits. Best, Larry
To learn more about your Social Security options, visit Maximize My Social Security.