Social Security - Part 1

Question 1

FRA 1943 to 1954

Answer 1

66

Question 2

FRA 1955

Answer 2

66 & 2 mo

Question 3

FRA 1956

Answer 3

66 & 4 mo

Question 4

FRA 1957

Answer 4

66 & 6 mo

Question 5

FRA 1958

Answer 5

66 & 8 mo

Question 6

FRA 1959

Answer 6

66 & 10 mo

Question 7

FRA 1960+

Answer 7

67

Question 8

COLA

Answer 8

0.3 percent cost-of-living adjustment (COLA)

The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

Question 9

2017 maximum amount of earnings subject to the Social Security tax

Answer 9

the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $127,200

Question 10

The earnings limit for workers who are younger than “full” retirement age

Answer 10

(age 66 for people born in 1943 through 1954) will increase to $16,920. (We deduct $1 from benefits for each $2 earned over $16,920.)

Question 11

The earnings limit for people turning 66 in 2017

Answer 11

will increase to $44,880. (We deduct $1 from benefits for each $3 earned over $44,880 until the month the worker turns age 66.)

Question 12

Earnings limit for individuals who are “full” retirement age or older for the entire year.

Answer 12

There is no limit on earnings for workers who are “full” retirement age or older for the entire year.

Question 13

How do spousal benefits work?

Answer 13

Earlier age to receive reduced benefits: 62

At full retirement age (FRA), spouse can receive the greater of 100% of their own or 50% of their spouses

Requirements:
A. Must be married at least a year for spousal benefit
B. Spouse must have filed for benefits before you can collect on his or her record

Also, when you file for spousal benefits, you must also file for your own benefits.

Individuals born in 1953 or earlier, you may be eligible for additional options.

Question 14

How does survivor benefits work?

Answer 14

Earliest age: 60

100% of your own benefit or 100% of deceased spouse benefit

Survivor benefits are increased if the deceased spouse delays taking benefits beyond FRA.

Survivor benefits are not increased if the surviving spouse delays taking benefits beyond FRA

Question 15

Survivor Benefits Requiremebts

Answer 15

A. Married at least 9 months before spouses death

B. Must currently be unmarried unless the remarriage occurred after age 60.

C. One you reach age 60, you can file for your survivor benefit. You can switch to your own benefit at a later date to take advantage of delayed credits.

D. You may also be entitled to a one time payment of $255 if you were either living with the deceased or receiving spousal benefits.

Question 16

Quarters of coverage

Answer 16

The unites that determine insured status. 1/4 of coverage is earned for each $1,260 earned in 2016, up to a maximum of four quarters in one year.

Question 17

Fully Insured

Answer 17

This status is required to be eligible for most benefits. Generally, to be fully insured, an individual must have accumulated 40 quarters of coverage. L

Under some circumstances, an individual may qualify for fully insured status with as few as 6 quarters of coverage.

Question 18

Currently Insured

Answer 18

Means status is adequate for survivor benefits to be paid to a child or surviving spouse caring for a qualifying child. Currently Insured status requires 6 quarters of coverage in the 13 quarter period preceding the event for which eligibility is sought.

Question 19

Taxation of Benefits

Answer 19

A portion of benefits may be taxed at any age. Combined income determines the amount subject to taxation.

Adjusted Gross Income
+ Nontaxable interest
+ 1/2 of Social Security Benefits
= Combined Income

Filing Status
Single $25,000 to $34,000 = Up to 50% taxable
More than $34,000 = Up to 85 % taxable

Joint $32,000 - $44,000 = Up to 50%
More than $44,000 = Up to 85%

Social security benefits are included on form 1040, line 20a. The taxable portion is included on line 20b.