Understanding Social Security Survivors Benefits: A Comprehensive Guide

Social Security is often associated with retirement benefits, but it also provides crucial support in other situations, such as for the disabled or those without income. One lesser-known aspect is Social Security survivors benefits, which offer financial assistance to eligible family members when a loved one who contributed to Social Security passes away. In this blog, we will delve into what Social Security survivors benefits are, who is eligible, how much they can receive, and how to apply for these benefits.

What Are Social Security Survivors Benefits?

When a family member who provided financial support passes away, it can leave the surviving loved ones in a difficult financial situation. Social Security survivors benefits are designed to provide a financial cushion beyond life insurance and savings. These benefits are available to widows, widowers, some divorced spouses, surviving children, and dependent parents, provided the deceased had paid enough into Social Security during their lifetime.

Who Is Eligible for Social Security Survivors Benefits?

Eligibility for Social Security survivors benefits depends on the deceased’s work history and the number of Social Security “credits” they earned. Generally, anyone who has worked for at least 10 years is eligible to provide full survivors benefits. Younger individuals with fewer work credits may still leave some benefits, though not the full amount. The benefits are based on the deceased’s earnings, so the more they worked and paid into Social Security, the larger the benefits will be.

Here are the basic eligibility requirements for different groups:

Surviving Spouses

• Can receive reduced benefits starting at age 60 or full benefits at age 50 if they have a disability that started before or within seven years of the spouse’s death.
• Can receive full benefits at any age if they care for a surviving child under 16 or a child with a disability.
• If the spouse was already receiving spousal retirement benefits, these automatically convert to survivors benefits upon the spouse’s death.
• If the spouse was receiving their own Social Security retirement benefits, they can only apply for surviving spouse benefits if it would be larger than their own retirement benefits.

Surviving Divorced Spouses

• Can receive the same benefits as a surviving spouse if the marriage lasted 10 years or more.
• Can receive full benefits regardless of the length of marriage if they are caring for their ex’s natural or legally adopted child under 16 or with a disability.

Unmarried Children

• Can receive survivors benefits if they are unmarried and under 18 (or up to age 19 if attending secondary school full-time).
• Can receive benefits at any age if they have a disability that started before they turned 22.
• In some cases, stepchildren, grandchildren, step-grandchildren, and adopted children might be eligible.

Dependent Parents

• Can receive survivors benefits if they are at least 62 years old and received at least half of their support from their working child.
• They are not eligible if they qualify for retirement benefits of a higher amount or if they remarry after their adult child dies, though there can be exceptions.
• In some cases, stepparents or adoptive parents can be eligible if they gained parental rights before the deceased turned 16 years old.

How Much Are Social Security Survivors Benefits?

The amount of survivors benefits depends on the average lifetime earnings of the deceased. The more they earned and paid into Social Security, the higher the benefits for their family. You can check your Social Security statement on the agency’s website, SSA.gov, to see if your family is eligible for survivors benefits and how much each type of relative would receive.

The monthly benefits are based on a percentage of the deceased worker’s basic benefit amount:

• For a surviving spouse at full retirement age: 100%
• For a surviving spouse aged 60 or older but not yet full retirement age: Between 71.5% and 99%
• For a surviving spouse of any age with a child under 16: 75%
• For a child under 18 (or 19 if in secondary school or any age with a disability): 75%
• For a dependent parent aged 62 or older: 82.5% for one parent or 75% to each parent if two surviving parents

In addition to the ongoing monthly payment, a surviving spouse or child may be eligible for a one-time lump sum death payment of $255. However, there is a maximum amount that surviving family members can receive, typically between 150% and 180% of the deceased’s basic benefit rate. Benefits paid to surviving divorced spouses due to age or disability do not count toward this maximum.

How to Apply for Survivors Benefits

Unlike Social Security retirement benefits, you cannot apply for survivors benefits online. Instead, you need to contact or visit your local Social Security Office or reach them by phone. If you are not currently receiving any Social Security benefits, you will need to provide information and documents related to your claim, such as proof of your loved one’s death, Social Security numbers, birth and marriage certificates, the deceased’s last tax return, and your bank account information for benefits. If you cannot find everything, the Social Security Administration will help you locate any missing information.

Are Social Security Survivors Benefits Taxable?

Whether you pay taxes on your Social Security benefits depends on your combined income, including wages, dividends, interest, and other taxable income. You will never pay income tax on more than 85% of survivors benefits. Here are the guidelines:

If you file your federal tax return as an individual:

• Combined income between $25,000 and $34,000: Up to 50% of survivors benefits may be taxable.
• Combined income exceeding $34,000: Up to 85% of survivors benefits may be taxable.

If you file your federal tax return as a joint return:

• Combined income between $32,000 and $44,000: Up to 50% of survivors benefits may be taxable.
• Combined income exceeding $44,000: Up to 85% of survivors benefits may be taxable.

If you are married and file separately, you will likely still owe taxes on your benefits. Children typically do not receive enough other income to have their benefits taxed, but it may be taxed in some cases. The IRS has detailed guidelines on this matter.

Protect Your Benefits

While Social Security benefits can be a financial lifeline, they can also be vulnerable to fraud. Some criminals use stolen Social Security numbers to commit identity theft and open unauthorized accounts, while others apply for Social Security benefits or steal benefits in someone else’s name. To protect your benefits, keep Social Security numbers secure and remain vigilant.

The Social Security Administration usually contacts beneficiaries through mailed letters, or occasionally, phone calls or home visits where someone immediately shows identification. If someone contacts you claiming to be from Social Security, especially unexpectedly, call their national office to verify if it is legitimate or a potential scam. The administration states that their employees will never threaten someone or promise benefit increases or approvals in exchange for money or personal information. If you receive suspicious contact, do not provide any money or information, end the communication, and contact the administration.

At O1ne Mortgage, we understand the importance of financial security for you and your loved ones. If you have any questions or need assistance with mortgage services, please do not hesitate to call us at 213-732-3074. Our team of experts is here to help you navigate your financial journey with confidence.