Hi,

My husband is 100% and is receiving SS disability benefits. Our daughter and myself also receive auxiliary benefits on his record. The maximum family benefit (minus his portion) is split equally between our daughter and myself.

Am I permitted to work?
Is there a max I can earn while working without disrupting my portion of the benefits?
If so and I go over that max, will my portion automatically transfer to our daughter?

Thank you!!

Hi,
Yes you can work. There is a certain amount you can earn BEFORE it affects your benefits. It is somewhere around $14,000 a year. I will need to look up the exact amount. Keep in mind though, if it is the first year that you are eligible, they calculate it each month (during your grace period). After the first year, it is annual income.

Anything over the designated amount reduces your benefit $1 for each $2 you earn. So the amount each person can earn before getting NO benefits depends on the amount of their benefits to begin with. So basically take the exempt amount, and add double your benefits, and you have the amount you can earn before you get nothing.

I THINK that your daughter's benefits would increase if yours decreased, but I am not certain of that. I would have to check that out a bit more. I know if you didn't draw at all, your daughters would increase, because, as you note - the dependent amount is split between you.

I will get back to you on the amounts - I have them on my other computer - which is sick at the moment.

Free

http://www.ssa.gov/retire2/whileworking.htm

We use a formula to determine how much your benefit must be reduced:

If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit.

For 2009, that limit is $14,160.

http://www.ssa.gov/retire2/whileworking2.htm
Examples: When you work and get Social Security at the same time
Updated: January 05, 2009


You can continue to work and earn above the annual earnings limit and still get some of your benefits.
Let's look at a couple of examples: You are receiving Social Security retirement benefits every month in 2009 and you

Are under full retirement age all year. You are entitled to $800 a month in benefits ($9,600 for the year).

You work and earn $22,160 ($8,000 over the $14,160 limit) during the year. Your Social Security benefits would be reduced by $4,000 ($1 for every $2 you earned over the limit), but you would still receive $5,600 of your $9,600 in benefits for the year. ($9,600 - $4,000 = $5,600)

This link explains the Grace year:

http://www.socialsecurity.gov/OP_Home/hand...dbook-1807.html

which is your first year of entitlement - and the income is considered on a month to month basis, rather than an annual basis.

This link explains the Adjustments for Family Maximum

http://www.ssa.gov/OP_Home/handbook/handbo...dbook-0732.html

However, it only discusses how it is affected when one member doesn't draw benefits.

I think it also applies when one member draws reduced benefits, but you will need to check that out futher.

Also check on the TAXATION of benefits. Sometimes more income can reslut in less income overall - if it kicks you into the level where Social Security benefits become taxable.

You might want to consider using a tax software application - and play around with the figures. If I earned this much, what would our taxes be? Then you get a better view of the overall "what will be in our pockets" picture.

It might surprise you.

But figure out a ball park of what will be in your pockets with different scenarios and so you will know more of the REAL profit / cost of different decisions - working full-time, working part-time, not working at all.

Then you will be better able to decide what you want to do.

Free