(a) If you have an ineligible spouse —(1) Counting income. If you apply for or are granted SSI benefits and you live in the same home as someone who is not eligible for benefits, we may consider a portion of their income to be your own. If you count a portion of that person’s income as your own, your benefits may be reduced or you may lose your eligibility. Section 416. 410 discusses the amount of benefits and § 416. 1163 describes how we calculate an individual’s income if their spouse is not eligible.
(2) Counting resources. When determining your eligibility, we will count the value of your spouse’s resources (money and property), less specific exclusions, if you are married to someone who is not eligible for SSI benefits and you live in the same home. Section 416. A more thorough explanation of our resource counting process is provided in 1202(a) and § 416 The maximum amount of resources that a person with an ineligible spouse may have is specified in 1205(a).
(b) If you have an eligible spouse —(1) Counting income. If you are a qualifying spouse as defined by § 416 and you apply for or receive SSI benefits 1801(c), we will compute the benefit amount for you both as a couple by adding up your combined income. Section 416. 412 provides a comprehensive breakdown of benefits, and subpart K of this section describes how we determine an eligible couple’s income.
(2) Counting resources. If your spouse qualifies as defined by § 416 1801(c), in order to assess your eligibility, we will utilize the couples resource limit and the total value of your combined resources (property and cash), less certain exclusions. Section 416. A thorough explanation of the resource limit for a qualified couple can be found in 1205(b).
(c) You are not regarded as a child if you are married. For the purpose of counting resources and income, children are subject to different rules than adults. (Section 416. The effects of being regarded as a child on eligibility and benefit amount are covered in 1851. If you’re married, we don’t regard you as a child, regardless of your age.
(d)(1) General guideline: Benefits are contingent upon marital status at the start of each month. We will treat you as single until the following month if you get married, even on the first day of the month. We will treat you as married until the next month if your marriage dissolves, even on the first day of the month.
(2) Exemption: In the event that both of you satisfy the prerequisites after the date of your marriage or after it terminates We will treat you as an eligible couple for that month if, in the month of your marriage, each of you first satisfies all eligibility requirements after the date of your marriage. We will treat you as eligible individuals if, in the month that your marriage ends, each of you first satisfies all eligibility requirements after the date your marriage ends. For information on how your benefits will be prorated, refer to subparts D and E. ).
[45 FR 71795, Oct. 30, 1980. Redesignated as 46 FR 42063, Aug. 31, 1981; 46 FR 29211, May 29, 1981 19, 1981, and amended at 51 FR 13495, Apr. 21, 1986; 60 FR 16376, Mar. 30, 1995].
The Social Security program plays a crucial role in providing financial security for retirees, including married couples. However, many individuals are unsure how spousal earnings impact their own Social Security benefits. This comprehensive guide delves into the intricacies of this topic, drawing insights from official Social Security Administration (SSA) publications and AARP resources.
Understanding the Impact of Spousal Earnings on Social Security Benefits
While a spouse’s income does not directly affect the calculation of your own Social Security retirement benefit, it can indirectly influence the benefits you receive in several ways. Here’s a breakdown of the key factors to consider:
1. Eligibility for Auxiliary Benefits:
- Auxiliary benefits are payments made to spouses based on their spouse’s earnings record.
- If your wife has a lower earnings record than you, she may be eligible for an auxiliary benefit equal to half of your primary insurance amount (PIA).
- However, as women’s earnings have increased over time, fewer wives are now eligible for auxiliary benefits.
2. Calculation of Your PIA:
- Your PIA is the foundation of your Social Security retirement benefit.
- While your wife’s earnings do not directly impact your PIA calculation, they can indirectly influence it by affecting your eligibility for auxiliary benefits.
- If your wife is eligible for an auxiliary benefit, it may reduce the amount of your combined Social Security benefits. This is because the Social Security Administration aims to ensure that the total benefits received by a couple do not exceed a certain limit.
3. Impact on Survivor Benefits:
- If your wife predeceases you, her earnings record may impact the amount of survivor benefits you receive.
- If your wife has a higher earnings record than you, you may be eligible for survivor benefits based on her earnings.
- However, the increasing trend of women having higher earnings than their husbands means that fewer men will be eligible for survivor benefits in the future.
4. Changes in Earnings Patterns:
- The increasing labor force participation and earnings of women have significantly altered the correlation between spouses’ earnings.
- This shift has implications for Social Security benefits, as more married women are now eligible for retired-worker benefits based on their own earnings.
- As a result, the share of married women receiving auxiliary benefits is projected to decline in the future.
5. Projections for Future Cohorts:
- Studies using the Social Security Administration’s Modeling Income in the Near Term (MINT6) project that:
- The proportion of wives receiving retired-worker benefits will increase from 82% for war babies to 93% for GenXers.
- The share of married women eligible for auxiliary benefits will decline from 45% for war babies to 25% for GenXers.
- The average Social Security benefit for married women is projected to increase from $1,028 for war babies to $1,551 for GenXers.
Additional Considerations:
- It’s important to note that these projections are based on current trends and may change in the future.
- Individual circumstances can vary widely, and it’s always recommended to consult with the Social Security Administration for personalized information about your benefits.
While a spouse’s income does not directly affect your Social Security retirement benefit, it can indirectly influence the benefits you receive through various mechanisms. Understanding these factors and how they may evolve in the future is crucial for making informed decisions about your retirement planning.
(2) Counting resources. When determining your eligibility, we will count the value of your spouse’s resources (money and property), less specific exclusions, if you are married to someone who is not eligible for SSI benefits and you live in the same home. Section 416. A more thorough explanation of our resource counting process is provided in 1202(a) and § 416 The maximum amount of resources that a person with an ineligible spouse may have is specified in 1205(a).
(2) Exemption: In the event that both of you satisfy the prerequisites after the date of your marriage or after it terminates We will treat you as an eligible couple for that month if, in the month of your marriage, each of you first satisfies all eligibility requirements after the date of your marriage. We will treat you as eligible individuals if, in the month that your marriage ends, each of you first satisfies all eligibility requirements after the date your marriage ends. For information on how your benefits will be prorated, refer to subparts D and E. ).
(d)(1) General guideline: Benefits are contingent upon marital status at the start of each month. We will treat you as single until the following month if you get married, even on the first day of the month. We will treat you as married until the next month if your marriage dissolves, even on the first day of the month.
[45 FR 71795, Oct. 30, 1980. Redesignated as 46 FR 42063, Aug. 31, 1981; 46 FR 29211, May 29, 1981 19, 1981, and amended at 51 FR 13495, Apr. 21, 1986; 60 FR 16376, Mar. 30, 1995].
(2) Counting resources. If your spouse qualifies as defined by § 416 1801(c), in order to assess your eligibility, we will utilize the couples resource limit and the total value of your combined resources (property and cash), less certain exclusions. Section 416. A thorough explanation of the resource limit for a qualified couple can be found in 1205(b).
Only if your spouse took early Social Security benefits and you are receiving spousal benefits based on their work record does their income impact you. In this instance, your spouse’s income may result in the withholding of your spousal benefits as well as their retirement payment.
Put differently, Social Security will deduct money from your retirement benefits if your income exceeds the cap on yearly earnings, which is $22,320 in 2024 for those who claim benefits before full retirement age. (For individuals born in 1957, the full retirement age is 66 and 6 months; for those born in 1958, it is 66 and 8 months, and it will progressively increase to 67 over the following few years.) The amount deducted from your benefit will not change based on your spouse’s income.
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No. Social Security does not deduct one spouse’s income from the other’s earnings cap, even if you file jointly. It only cares about how much money you make working and getting benefits.
Will My Spouse’s Income Affect My SSI Case?
Does a spouse’s income affect Social Security benefits?
The exception to this is for an ex-spouse. An ex-spouse’s excess earnings cannot affect your Social Security benefits. The quick summary to this is to remember that the earnings test is an individual test. Normally, a spouse’s income will not impact your benefits.
Does Social Security count both spouses’ incomes against one spouse’s earnings limit?
No. Even if you file taxes jointly, Social Security does not count both spouses’ incomes against one spouse’s earnings limit . It’s only interested in how much you make from work while receiving benefits.
Can a spouse get Social Security spousal benefits?
They have no benefit of their own, but thanks to the Social Security spousal benefit available under their spouse’s work record, they can still receive payments. This particular benefit doesn’t just provide retirement income, either. As an eligible spouse, you could also receive premium-free Medicare benefits.
What happens if my spouse’s earnings affect my spousal benefits?
In this case, your spouse’s earnings could trigger withholding from both their retirement payment and your spousal benefits. One more wrinkle: If you are receiving spousal benefits, are below full retirement age and are working, your own work income is subject to the earnings limit and could reduce your payment.