social security marriage penalty

SSI is a needs-based federal program that helps people with disabilities (as well as people who are elderly) who have little or no income. NOTE: A beneficiary can file an appeal and request a new initial determination at the same time, if filed within the appeals period. Views: 69063. 1 See section 103(a), Promotion of Family Formation and Healthy Marriage, in H.R. SSI eligibility is restricted to people with limited income and resources, and recipients' countable income reduces their benefit amount. Following same-sex marriage legalization in 2015, Rabia Belt, a legal historian at Stanford Law School, called marriage for people with disabilities “the last marriage equality frontier.” For example, in the 2001 tax year, a one- or two-parent family with two children would not have received a credit if their income had totaled $32,121 or more. This is sometimes referred to as a "marriage tax penalty." The law defines "infrequently" as not receiving the income more than once in a single quarter from a single source and "irregularly" as not reasonably expecting to receive the income. A request for a new initial determination applies only to the beneficiary requesting it. Q: I am a 72-year-old woman. When we are talking about your own Social Security retirement benefits, there is no marriage penalty under Social Security law. If you want more information on tax rules relating to older people, see IRS Publication 554, Older Americans Tax Guide, available from the IRS at 800-829-1040 or at www.irs.gov. Although the benefit rate options discussed above are mutually exclusive alternatives, the exclusion and deeming options presented below could be implemented in combination with one another and with one of the benefit rate options. Like. These options are not exclusive. If an eligible individual lives with another person and they are not married or are not representing themselves as husband or wife, the eligible individual's SSI benefit is determined without considering the income from the other person. Copyright ©2021 MH Sub I, LLC dba Nolo ® Self-help services may not be permitted in all states. The underlying reasons for the three types of exclusions are consistent with extending the exclusions to both members of the couple. Instead of determining the exact value of any support and maintenance supplied by the ineligible spouse, deeming rules recognize some measure of family responsibility and support the premise that SSI should pay benefits only to the extent that needs are not met by other sources. If the ineligible spouse's income is equal to or less than the difference between the couple and individual FBR, there is no income to deem to the eligible individual. We have not been able to find your subscription. If Daniel also receives SSI, then they will both remain eligible, but there is a “marriage penalty.”. I don’t have my own Social Security, but I’m getting benefits as a divorced wife off my husband’s Social Security record. Of the three major income assistance programs, only the SSI program distinguishes marital status. In making its estimate, CBO assumed that implementation would occur in fiscal year 2005, with estimated savings of $70 million in that year and of $1.345 billion from 2005 to 2013. According to definitions in the regulations (7 CFR 271.2), spouses are two individuals who either would be defined as married to each other under applicable state law or are living together and are holding themselves out to the community as husband and wife by representing themselves as such to relatives, friends, neighbors, or tradespeople. 2001b. Budget Options. "How your Social Security retirement benefits, spousal benefits, and widow/widower benefits are calculated. It would also reduce the amount of information that must be collected and would simplify program rules. A: It is not true. It will assist you in helping people apply for, establish eligibility for, & continue to receive SSI benefits for as long as they remain eligible. This publication can also be used as a training manual & as a reference tool. The current exclusion allows SSA to ignore an eligible individual's receipt of a birthday gift of $20 or earnings of $10 for an odd job. 0 have signed. The Marriage Penalty Can Zap Disabled SSDI Recipients’ Happiness For anyone who has applied for Social Security Disability, it is no surprise that the process is long and complex, with multiple rules governing eligibility and benefits. 1998. Consider, for example, an aged couple, each receiving a $20 gift from their son in December. If two people receiving SSI get married, they will receive When we are talking about your own Social Security retirement benefits, there is no marriage penalty under Social Security law. A 10 percent reduction with payment protection—that is, no reduction for the first 3 years for all individuals awarded benefits before the implementation date—would increase program costs by about $400 million over 5 years but would save more than $1 billion over 10 years. The 1996 report of the Committee on Childhood Disability of the Disability Policy Panel recommended reducing benefits to families with multiple child recipients using a sliding scale. Impact and Policy Implications. For example, if both the eligible spouse and the ineligible spouse had income from earnings, both of them would be able to exclude the first $65 of their earnings as well as one-half of the remaining earnings. http://factfinder.census.gov/servlet/DTTable?geo_id=01000US&ds_name= DEC_2000_SF3_U&mt_name=DEC_2000_SF3_U_PCT007&_lang=en&_sse=on, http://www.cbo.gov/showdoc.cfm?index=4066&sequence=13, SOURCES: For U.S. adult population data: U.S. Census Bureau, Detailed Tables, PCT7, Sex by marital status by age for the population 15 years or older, available at. However, remarriage can affect your benefits — not your retirement benefits, but any benefits … Social Security Disability Insurance (SSDI) is a disability program for workers who become disabled. To qualify for spouse’s benefits, you must be one of these: At least 62 years of age. But I’ve been told that if we get married, I will lose my ex’s Social Security. by: Pamela Sellarole. ... 9:56 the marriage penalty could easily be altered so that it tapers out. The combined countable income for the eligible and ineligible spouse is less than the federal benefit rate for a couple, so the individual is eligible to receive SSI based on deeming. Within that context, this paper examines SSI policy toward marital status. For a family with no countable income, the first child would receive $552 (the FBR), the second would receive $333 (40 percent less), and the third would receive $291 (47 percent less). Whether Option 3 would result in a savings or a cost (like Option 2) would depend on the percentages used for the sliding scale. SSI considers the income and contributions of other household members only in certain situations: spouses and parents (in the case of children) of SSI recipients and when someone in the household provides in-kind support and maintenance to the recipient. Social Security benefits. The income and assets of each household member are considered in determining eligibility and benefit amount. Program costs would significantly increase as couples were made better off. He will get $2,400 monthly. As a result, Social Security recognizes more same-sex couples as married for purposes of determining entitlement to Social Security benefits or eligibility for Supplemental Security Income (SSI) payments. Unfortunately, this break is due to expire in 2005, at which time another -- less favorable -- relief provision kicks in. SSI Annual Statistical Report, 2000. However, it would result in all unmarried couples being treated in the same way. Each one of those six survivors is technically due an amount equal to 75% of Jerry’s basic Social Security benefit. Benefits would continue to decrease for additional children. Both members of a couple would be able to take full advantage of the general income exclusion. For example, in Colorado, the total payment level available for an eligible couple living independently is equal to two times the total payment level for an individual, thereby making up the difference in federal benefit rates for an individual and a couple. Things can change if you’re receiving what are called spousal benefits.. Deeming Option 2: Provide a living allowance for the ineligible spouse that is equivalent to the. That's an internal SSA form used in lieu of a marriage certificate as proof of marriage for spousal benefits. Under a 5 percent FBR reduction, for example, just over 1 million current recipients would receive higher benefits.6 Couples would be eligible for 190 percent of the FBR instead of 150 percent. You are getting benefits on your ex-husband’s record because you are considered his dependent. The person's companion also earns $4,000 in 2001 and would be entitled to an EITC of $308. I have met another man. Individuals who are subject to the one-third reduction or currently receive in-kind support and maintenance also would receive higher benefits. SSA rejected the recommendation, citing the concern that such a change could be viewed as being antifamily. The Office of Policy is currently analyzing additional options. Do-Over Option: Allows Social Security recipients to remove their original application for benefits and re-file at a later age. I was married to him for 28 years. Restructuring the SSI Disability Program for Children and Adolescents. The parental living allowance is subtracted from income after applying the earned and unearned income exclusions. Options 2 and 3 recognize the economies of scale from sharing living expenses. Social Security benefits are based on your income, the year you were born and the age you decide to start taking money out. Stay tuned. In examining the way the Supplemental Security Income (SSI) program treats marital status, it is also useful to consider how other means-tested programs do so. The rate for a veteran receiving a pension based on disability varies depending on the number of dependents, which would include the veteran's spouse. For couples with one member ineligible, the rules require that the income and resources of the ineligible spouse be considered in determining the other spouse's eligibility for and monthly amount of SSI benefits. Under this option, spousal deeming would be calculated in the same manner as parent-to-child deeming. The two options for changing the rules for deeming are not mutually exclusive and could be combined. Some states use TANF monies to fund activities that promote marriage. The treatment of marital status for the earned income tax credit (EITC) produces outcomes similar to those of the SSI program. Impact and Policy Implications. The economies-of-scale argument would seem to apply to both types of households and would not seem to give members of either household an advantage in terms of reduced costs for food and shelter or other necessities of daily living. Marital status, therefore, can be an important factor in determining eligibility and in calculating the amount of the benefit.Benefits for a married couple, both of whom receive SSI and have no other income, amount to 25 percent less than the total they would receive if they were living together but not as husband and wife. 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