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What's Best for Mom in a Mom-and-Pop Business?
Q: My wife and I are in our 30s. We're partners in a business that nets us about $80,000 per year. What's the best way to report our income on our tax returns to maximize our Social Security benefits?
A: Even though you're asking about your future …Read more.
Bleeding Hearts and Bootstraps
Q: I was surprised by the woman who wrote to you and said that people living on a small amount of Social Security were just lazy. Let me share my story to help this callous woman understand why people like me don't get very much from Social Security.…Read more.
Don't Base Critical Decisions on Prophets of Doom
Q: I'm about to turn 66. I want to put off starting my Social Security until age 70 because if I do, I'll get an extra $600 or so per month in a delayed retirement bonus added to by Social Security checks. But my husband said I should take my Social …Read more.
Geezers and Floozies
Q: I'm part of a group of old geezers who gets together every week at the local coffee place. Social Security is a frequent topic of conversation. At our last meeting, the subject of benefits for divorcees came up.
One of our geezers was married to …Read more.
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Stay-at-Home Mom's Kids May Get Social SecurityQ: Our son's wife recently died. She was only in her late 20s. She was a stay-at-home mom throughout her brief marriage. Can our son get any Social Security benefits for their two little girls? And if so, how much would they get? We know of other young widowers who are getting Social Security for their children. A: In some ways, Social Security works like regular insurance. A person must pay the premiums, or in this case, pay Social Security taxes in order to be insured for benefits. You said your daughter-in-law was a stay-at-home mom. If that means she never worked and never paid into Social Security, then I'm afraid your son and granddaughters would not be eligible for any Social Security benefits on her record. But I wonder if your daughter-in-law worked a little bit before she got married? Maybe even something as simple as a part-time job while she was in school? Depending on her exact age when she died, she could be insured for Social Security with as few as six Social Security credits, or what many people call "quarters" (of coverage). A person can earn as many as four Social Security credits per year. So even if your daughter-in-law worked for only a couple years before she got married, she could be insured and your granddaughters might get monthly Social Security benefits on her record. Assuming your daughter-in-law was barely insured for Social Security by paying into the program for only a few years, your grandchildren would not receive very much money. It would probably be less than $500 per month combined. If he hasn't done so already, your son should contact his local Social Security office to check into this issue. Q: My wife just turned 65 years old. She was recently let go by her employer. She was planning to wait until age 66 to apply for Social Security, but she is thinking of taking her Social Security now. Is there a standard early retirement reduction? In other words, if she files now, will she get the same early retirement reduction in benefits if she had taken Social Security at 62? A: No.
Q: I am 63 and have been out of work for a few months. I was going to wait until age 66 to start my Social Security. But I wonder if I should do it now? I am looking for another job and may go back to work someday. If I do that, what happens to my Social Security? Here are some facts for you: My age 66 Social Security benefit is estimated to be $1,980. At 63, I would get about $1,600. A: Think of it this way. Each month you wait to sign up for Social Security, you are throwing away $1,600. And if you do find another job someday, you simply report that to the Social Security Administration and they will adjust your benefits accordingly. If you end up making way over the pre-age 66 earnings limit, which is $14,160 per year, then your Social Security benefits will be suspended. And assuming you keep working, they will be started up again when you turn 66. (That's when the earnings penalties disappear.) At that point, your benefit rate will be refigured, and instead of a 36-month early retirement penalty, you will be charged with a reduction only for those months that you actually received a Social Security check before age 66. Q: I'm a recently retired federal employee with good medical insurance provided by the federal employees health benefit (FEHB) program. Do I need Medicare Part B? A: Maybe. Maybe not! In my prior life as a representative of the Social Security Administration, I participated in thousands of retirement seminars for federal employees — they were always given the same message by their in-house benefit counselors. That advice was to check with their FEHB insurer at age 65 to find out if participation in Medicare Part B was suggested or required. Most retired feds told me they didn't need Part B. If you have a Social Security question, Tom Margenau has the answer. Contact him at thomas.margenau@comcast.net. To find out more about Tom Margenau and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com. COPYRIGHT 2010 CREATORS.COM.
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