How Spousal Benefits Are Calculated
- Full Retirement Age. As you might expect, "normal" retirement age is becoming later in life, but the changes to the Social Security rules are being phased in.
- Claiming Early or Late. Your spousal benefit is based upon your partner's "normal" benefit amount. But the amount you receive will depend upon when you begin to claim it.
- If You're Receiving Other Retirement Benefits. The calculation gets a bit more complicated if you are eligible to receive benefits from a government pension or foreign employer that is not ...
- Same-Sex Married Couples. Same-sex married couples have enjoyed the same rights as all other couples since the 2015 Supreme Court ruling affirming their constitutional rights to marriage recognition.
What determines my spousal Social Security benefit?
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- How retirement benefits, spousal benefits, and widow (er) benefits are calculated,
- How to decide the best age to claim your benefit,
- How Social Security benefits are taxed and how that affects tax planning,
- Click here to see the full list.
When is spousal support considered taxable income?
Without any modification, the alimony payments for agreements entered into prior to January 1, 2019 are typically deductible by the payor and taxable income to the recipient. To qualify as alimony or separate maintenance, the payments you make to your former spouse must meet all six of these criteria:
What is the maximum Social Security spousal benefit?
However, in order to get the maximum spousal benefit, you and your spouse must meet these criteria:
- Your spouse must have earned more than the Social Security maximum taxable wage limit for at least 35 years of his or her career.
- Your spouse must be receiving his or her own benefit already.
- You must wait until your full retirement age to file for benefits.
How to calculate the Social Security spousal benefit?
There are three separate bands that you have to know about:
- The band of 37+ months from full retirement age
- The band of 1-36 months for full retirement age
- After full retirement age.
Can you collect 1/2 of spouse's Social Security and then your full amount?
Your full spouse's benefit could be up to one-half the amount your spouse is entitled to receive at their full retirement age. If you choose to begin receiving spouse's benefits before you reach full retirement age, your benefit amount will be permanently reduced.
What percentage is the spousal benefit?
Depending on your age upon claiming, spousal benefits can range from 32.5 percent to 50 percent of your husband's or wife's primary insurance amount — the retirement benefit to which he or she is entitled at full retirement age, or FRA.
What are the rules for spousal benefits of Social Security?
Who is eligible for spousal Social Security benefits?You must have been married at least 10 years.You must have been divorced from the spouse for at least two consecutive years.You are unmarried.Your ex-spouse must be entitled to Social Security retirement or disability benefits.More items...•
What is the maximum spousal benefit for a spouse who never worked?
The maximum Social Security benefit of a nonworking spouse is up to 50 percent of the working spouse's benefit at FRA. So if, for example, your FRA benefit is $2,000/month, your spouse would be able to collect up to $1,000 at his FRA.
Can I switch from my Social Security benefit to a spousal benefit?
In this case, you can claim your own Social Security beginning at 62 and make the switch to spousal benefits when your husband or wife files. Social Security will not pay the sum of your retirement and spousal benefits; you'll get a payment equal to the higher of the two benefits.
Does spousal Social Security benefits reduce my benefits?
If I receive a spouse benefit, will it reduce the amount that my spouse receives? No, receiving benefits on your spouse's earnings record does not affect the amount of the retirement or disability benefit that your spouse receives.
When can a spouse claim spousal Social Security benefits?
62 years of ageEven if they have never worked under Social Security, your spouse may be eligible for benefits if they are at least 62 years of age and you are receiving retirement or disability benefits. Your spouse can also qualify for Medicare at age 65.
When can my spouse collect half of my Social Security?
You can claim spousal benefits as early as age 62, but you won't receive as much as if you wait until your own full retirement age. For example, if your full retirement age is 67 and you choose to claim spousal benefits at 62, you'd receive a benefit that's equal to 32.5% of your spouse's full benefit amount.
What percentage of Social Security benefits does a widow receive?
Widow or widower, full retirement age or older—100% of your benefit amount. Widow or widower, age 60 to full retirement age—71½ to 99% of your basic amount. A child under age 18 (19 if still in elementary or secondary school) or has a disability—75%.
Does a wife get 50 of husband's Social Security?
You can receive up to 50% of your spouse's Social Security benefit. You can apply for benefits if you have been married for at least one year. If you have been divorced for at least two years, you can apply if the marriage lasted 10 or more years.
How much Social Security will I get if I make 20000 a year?
If you earned $20,000 for half a career, then your average monthly earnings will be $833. In this case, your Social Security payment will be a full 90% of that amount, or almost $750 per month, if you retire at full retirement age.
Do married couples get 2 Social Security checks?
Not when it comes to each spouse's own benefit. Both can receive retirement payments based on their respective earnings records and the age when they claimed benefits. One payment does not offset or affect the other.
When can I claim my spousal benefits?
But the amount you receive will depend upon when you begin to claim it. You can claim spousal benefits as early as age 62 , but you won't receive as much as if you wait until your own full retirement age.
What is the percentage of Social Security for spouse?
The percentage of your spouse's Social Security that you receive starts at 32.5% at age 62 and steps up gradually to 50% at your full retirement age, 66 or 67 depending on your year of birth. The amount is based on your spouse's benefit at full retirement age. 15 . The important point is this: Don't bother delaying past your full retirement age.
What is the maximum amount of spousal benefits at 62?
For example, if your full retirement age is 67 and you choose to claim spousal benefits at 62, you'd receive a benefit that's equal to 32.5% of your spouse's full benefit amount. The amount increases with each year you delay. At your full retirement age (67 in this example) you'd be eligible for the maximum, which is 50% ...
What happens if your spouse retires at 70?
If your spouse delays retiring until 70, the spouse gets more but you don't. Survivors may receive up to 100% of the deceased person's Social Security amount. 10 There's a complicated formula for families in which more than one dependant is eligible for benefits. It caps the maximum. 16 .
How much can a widow receive?
A widow or widower can receive up to 100% of a spouse's benefit amount. That's if the survivor has reached full retirement age at the time of the application. The payment is reduced to somewhere between 71% and 99% of the deceased's entitlement if the widowed person is at least 60 but under full retirement age. 8 .
How old do you have to be to collect Social Security?
If your spouse has filed for Social Security benefits, you can also collect benefits based on the spouse's work record, if: You are at least 62 years old. Regardless of your age, if you care for a child who is entitled to receive benefits on your spouse’s record, and who is under age 16 or disabled. 2 .
How much can I get from my spouse?
The maximum amount you can receive is 50% of your spouse's full benefit. 1 That's straightforward enough, but the precise amount you'll get and when you'll get it depends on several circumstances, including your spouse's age and work history, your own age and work history, and more. That leaves some room for you to maximize ...
How much is spousal benefit reduction?
If you file for a spousal benefit prior to your full retirement age, that spousal benefit will be reduced due to early filing. The reduction is 25/36 of 1% for each month early, up to 36 months. For each month in excess of 36 months, the reduction is 5/12 of 1%.
How much is Bob's spousal benefit?
Bob’s spousal benefit will initially be calculated as 50% of Jane’s PIA. (Key point being: it’s 50% of Jane’s PIA, rather than 50% of what she’s actually receiving.) If Jane had filed for retirement benefits after her full retirement age (and were therefore receiving an amount larger than her PIA), Bob’s benefit as Jane’s spouse would still be ...
How do I find out about Social Security?
Want to Learn More about Social Security? Pick Up a Copy of My Book: 1 How retirement benefits, spousal benefits, and widow (er) benefits are calculated, 2 How to decide the best age to claim your benefit, 3 How Social Security benefits are taxed and how that affects tax planning, 4 Click here to see the full list.
What happens if you receive a government pension from work that wasn't covered by Social Security taxes?
If you are receiving a government pension from work that wasn’t covered by Social Security taxes, your spousal benefit will be reduced by the “ government pension offset .”. If your spouse is disabled or if you have a minor child or adult disabled child, the family maximum rules may result in your spousal benefit being reduced .
What is the primary insurance amount?
A person’s primary insurance amount is the amount of their monthly retirement benefit, if they file for that benefit exactly at their full retirement age. A Social Security spousal benefit is calculated as 50% of the other spouse’s PIA.
Can spousal benefits be reduced?
For example: If you are receiving a retirement benefit of your own, your spousal benefit will be reduced. If you file for spousal benefits prior to your full retirement age, your spousal benefit will be reduced.
Does Bob receive PIA?
your PIA or. your monthly retirement benefit. Example: In addition to receiving a benefit as Jane’s spouse, Bob is also receiving a retirement benefit of his own. Because he is entitled to a retirement benefit of his own, he will not receive the full spousal benefit (i.e., 50% of Jane’s PIA).
How old do you have to be to get spousal benefits?
If you file for a spousal benefit before age 66, the percentage you receive depends upon your age. There’s a two-stage process as to how Social Security calculates the reduction and it's based upon how many months ahead of your FRA you are filing:
What is the Social Security income limit for 2012?
If you are receiving income from a job (investment income doesn’t count), your spousal benefit may be reduced. The “income limit” for 2012 is $14,640. Assuming you are not going to reach full retirement age this year, for every $2 above this amount that you’re paid, Social Security will withhold $1 of your spousal benefit.
Do federal workers get Social Security?
1. Many state, municipal and some federal workers do not pay into the Social Security system. In this case, neither the worker nor their spouse is entitled to Social Security benefits. 2.The federal law known as the Defense of Marriage Act only recognizes “marriage” as between a man and a woman.
Do you get Social Security if you claim spousal benefits?
Here are some other things you need to be aware of when claiming spousal benefits: If you are eligible for a Social Security benefit based upon your own work history, you will either receive this amount or the spousal benefit you’re entitled to, whichever is higher. (In other words, you don’t get both amounts.)
Social Security Spouse's Benefit Estimates
Plan for your future with a my Social Security account. With a my Social Security account, you can view the benefits you could receive based on your spouse’s earnings history, or the benefits your spouse could receive based on your earnings history.
Follow these steps to get started
Ask your spouse to create or open their my Social Security account, go to the ‘Plan for Retirement’ section, and note their retirement benefit estimate at their full retirement age or Primary Insurance Amount (PIA).
How much can I collect as a spouse?
If you wait until full retirement age to claim benefits, you'll receive the maximum amount you can collect as a spouse. That is equal to 50% of your spouse's benefit amount. 3 . The benefits claiming strategy known as "file and suspend" has been totally eliminated.
What is the full retirement age for Social Security?
Full retirement age, for Social Security purposes, is between 66 and 67, depending on your year of birth. 2 . One exception: If you are caring for your spouse's child who is under age 16 or who receives Social Security disability benefits, you can collect spousal benefits at any age without a reduction. 3 . ...
Can you collect spousal benefits on your own?
However, only one person per couple may collect spousal benefits while earning delayed retirement credits on his or her own account. And, to repeat, this option is no longer available to anyone who wasn't born on or before Jan. 1, 1954.
Can I apply for Social Security if my spouse is not eligible?
Key Takeaways. Spouses who aren't eligible for Social Security on their own work record can apply for benefits based on the other spouse's record. The maximum spousal benefit is equal to 50% of the other spouse's benefit. People can apply for spousal benefits as early as age 62, but they'll get more money if they wait until their full retirement ...
Can I claim my spouse's Social Security if I never worked?
If you have never worked or paid Social Security taxes (or didn't pay them for long enough), you won't be eligible to claim Social Security retirement benefits on your own account. However, you may be able to receive spousal benefits through your spouse's account.
Can a spouse file for Social Security at full retirement age?
Using this strategy, the higher-earning spouse could file for Social Security at full retirement age (thus making it possible for their spouse to get spousal benefits), but then "suspend" his or her claim and not take benefits until later, while racking up delayed retirement credits in the meantime. 5 .
How much is spousal benefit?
Depending on how old you are when you file, the spousal benefit amount will range between 32.5% and 50% of the higher-earning spouse’s full retirement benefit. Check out the chart below to get an idea of how the benefit works and what your payment might be if you can take advantage ...
How much of my spouse's Social Security is my full retirement?
Remember, in that case, it’s between 32.5% and 50% of the higher-earning spouse’s full retirement age benefit, depending on your filing age. However, it can seem a little more complicated if you have Social Security benefits from your work history.
How many people receive Social Security benefits as a spouse?
A recent Social Security report found that 2.3 million individuals received at least part of their benefit as a spouse of an entitled worker. Some of these spouses had benefits of their own, but were eligible to receive higher benefit because the spousal benefit amount was greater than their own benefit. Others never worked outside the home ...
What is the 1 year requirement for Social Security?
The 1-year requirement is also waived if you were entitled (or potentially entitled!) to Social Security benefits on someone else’s work record in the month before you were married. An example of these benefits would be spousal benefits, survivor benefits or parent’s benefits.
What is Julie's reduction to her own benefit?
This means that Julie’s reduction to her own benefit would be based on her age when she filed for her benefit. However, her reduction to the spousal benefit would be based on her age when Joe filed for his benefit. So, if Julie filed when she was 62, her own benefit would be reduced.
How long do you have to be married to get spousal benefits?
The Two Exceptions to Know Around the 1 Year Marriage Requirement. Normally, you must be married for at least 12 continuous months to meet the spousal benefit duration-of-marriage requirement. However, there are two exceptions to this rule.
How much is Joe's retirement?
Joe’s benefit at his full retirement age is $2,000. Assuming they are both full retirement age when they file, Joe will be entitled to a benefit of $2,000 and Julie will be entitled to the greater of her own benefit or half of Joe’s benefit.
What is the maximum amount of benefits a spouse can receive?
Note that the maximum benefit for a spouse is 50% of their spouse’s benefit. That means that your spouse would have had to earn a substantial amount more over his or her working life to make that benefit higher ...
What is the maximum Social Security benefit for a spouse?
The allowed Social Security retirement benefit for a spouse starts at 32.5% at age 62 and gradually increases to 50% of the amount that their spouse is eligible to receive at full retirement age, which is 66 or 67 depending on their birth year.
How old do you have to be to get spousal benefits?
The spouse must be at least 62 years old or have a qualifying child – a child who is under age 16 or who receives Social Security disability benefits – in his or her care.
How much Social Security can a widow receive?
Widows and widowers may be able to receive up to 100% of the deceased spouse's Social Security benefit. Social Security uses a formula for families with more than one eligible dependent to calculate maximum benefits.
Can same sex couples get Social Security?
Both opposite-sex and same-sex married couples are eligible for Social Security spousal and dependent benefits. So are some individuals in legal relationships such as civil unions and domestic partnerships. And those who were married for at least 10 years and have been divorced for at least two years also can apply.
Is Social Security complicated for married people?
Social security is complicated for individual filers, and being married can make it even more complicated. That’s because Social Security includes benefits for the spouse as well as the individual. When an individual files for retirement benefits, that person’s spouse may be eligible for a benefit based on the worker's earnings according to ...
Can a spouse receive a survivor's benefit if they remarry?
If the surviving spouse remarries at age 60 or older, he or she can still receive the survivor benefit. However, remarrying before age 60 eliminates eligibility to collect the deceased spouse’s benefit.
Benefit Calculators
The best way to start planning for your future is by creating a my Social Security account online. With my Social Security, you can verify your earnings, get your Social Security Statement, and much more – all from the comfort of your home or office.
Online Benefits Calculator
These tools can be accurate but require access to your official earnings record in our database. The simplest way to do that is by creating or logging in to your my Social Security account. The other way is to answer a series of questions to prove your identity.
Additional Online Tools
Find your full retirement age and learn how your monthly benefits may be reduced if you retire before your full retirement age.
