Sec.5 - Ch.2 - Social Security Flashcards
What social insurance programs are covered by the Social Security Act?
- Social Security (OSDI)
- Medicare
- Federal Unemployment Insurance
- Supplemental Security Insurance (SSI)
When is a worker considered FULLY insured? What benefits are the eligible for when fully insured?
When they have 40 credits of coverage
- They are eligible for survivor and retirement benefits
How many credits can a worker accumulate in a calendar year?
4 credits per calendar year
When is a worker considered CURRENTLY insured?
When they only attained 6 credits of coverage
What benefits are currently insured workers entitled to?
- A lump-sum death benefit of $255 for spouse OR dependent
- A surviving spouse’s benefits (if children are under age 16)
- A dependent benefit
Are members of the armed forces covered under OSDI?
Yes
When a child workers for their parent, and is under the age of 18, what kind of taxes are paid?
None - neither the child or the parent will have to pay self-employment or FICA taxes (unless her income is over the standard deduction)
Are Railroad workers eligible for Medicare and Social Security benefits?
Medicare - yes
Social Security - no
When is a worker entitled to disability benefits?
If they are under age 65 and have been disabled for 12 months, is expected to be disabled for a least 12 months, or has a disability which is expected to result in death and has completed a 5-month wait period
What is a spouse of a RETIRED OR DISABLED worker able to receive Social Security/Disability benefits?
They must meet any of the following requirements:
- Is 62 or over or at any age if the spouse:
- Has a child “in care” under 16
- Has a child age 16 and disabled before age 22
When is a spouse of a DECEASED worker eligible to receive Social Security payments?
Age 60
- Age no longer matters if the surviving spouse is caring for an entitled child either under the age of 16 or became disabled before age 22
Under what qualifications can a divorced spouse receive a deceased workers SS benefits?
- They must have been married to the worker for at least 10 years
- Must not have remarried
- At least 62 and has been divorced from the worker for at least 2 years can receive benefits based on the workers earnings
What are the Dependent Benefit qualifications?
- They are an unmarried child of a deceased, disabled, or retired worker
The surviving dependent is 18 or under and a full time elementary or secondary school student, or age 18 or over but has a disability which began before age 22
What amount is a Social Security benefit reduced by when the benefit is taken before full retirement age? What is the reduction of benefit calculation?
1/80
Calculation:
PIA - [(Number of months before FRA / 180) * PIA]
What is the reduction of SS benefits if a worker is still working before FRA?
For workers younger than FRA during all of 2024, the government will deduct $1 from benefits for each $2 earned over $22,320
