OASDI

Question 1

OASDI Covered Programs

Answer 1

Social Security (retirement , survivor diasability)
Medicare
Unemployment
SSI

(lump sum death benefit ($255)

Question 2

Paying in to system

Answer 2

Fully Insured - 40 Quarters
Currently Insured (6 Quarters)

Question 3

Not covered under OASDI

Answer 3

NO FICA

Federal employees - before 1984
Some Americans working abroad
Student Nurses, students working for college or club
Railroad Employees (Eligible for medicare not SSI)
Under 18 employed by parent or unincorporated business
Ministers, religious
Members tribal council

Question 4

Disable Worker

Answer 4

Eligible under age 65
Disabled for 12 months
Is expected to be disabled for 12 months
Disability expected to result in death (completed 5 mo waiting period)

Question 5

Spouse

Answer 5

Retired or disabled worker qualifies if:

62 or older
child <16
child > 16 and disabled

surviving spouse (even if divorced) of deceased:
SSI if survivor is over 60

( divorced spouse must be married 10 years not remarried)
(divorced 2 years even if spouse still working)

Surviving spouse- regardless of age qualifies if caring for minor child or disabled child.

Question 6

Dependent / Child

Answer 6

surviving dependent - unmarried child of deceased, disabled, or retired

• under 19 full time student
• 18 or over disabled before age 22

these are dependent benefits -not spouse benefits.

Question 7

Currently Insured

Answer 7

6 Quarters
lump sum death benefit 255$
Surviving Spouse Benefit (if children under 16)
Dependent Benefit

Question 8

Calculation of Benefits

Answer 8

Use Primary Insurance Amount

Spouse 50% PIA

Question 9

Benefits before NRA

Answer 9

Determine PIA
Reduced by 1/180th for each of first 36 months

Example: Start receiving benefits 24 months early

241/180PIA = benefit

36 months early will be 80% of full amount

Question 10

Work after Retirement

Answer 10

Full retirement age or older can work and keep all benefits but may be taxable!

Losing benefits:
Younger than FRA (66)
reduction 1$ for every 2$ earned above $15720

Reach FRA in current year deduct 1$ for every 3$ over $41880

Question 11

Taxation of Benefits

Answer 11

If provisional Income and 50% ssi is more than
Single $25000 MAGI
Married $32,000 MAGI
50% taxable (Included in Gross income)

85% included in gross income over
Single $34,000
MFJ $44,000

Tax exempt Bond interest is added for determining SSI taxability

Child’s benefits don’t count

Question 12

Provisional Income

Answer 12

AGI + tax exempt interest + 1/2 SSI