Turn on Social Security at 62 and Your Minor Children Can Collect The Dependent Benefit

Not many people realize that if you are age 62 or older and have children under the age of 18, your children are eligible to receive social security payments based on your earnings history, and it’s big money. However, social security does not advertise this little know benefit, so you have to know how to apply, the rules, and tax implications. In this article, I will walk you through the following:

• The age limit for your children to be eligible to receive SS benefits
• The amount of the payments to your kids
• The family maximum benefit calculation
• How the benefits are taxed to your children
• How to apply for the social security dependent benefits
• Pitfall: You may have to give the money back to social security…..

Contact Michael Ruger with Questions: 518-477-6686 or [email protected]
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CLARIFICATION IN FAMILY MAXIMUM BENEFIT CALCULATION: In this video, we reference the Family Maximum Benefit calculation at 4:16 in the video. There is an important item that I want to clarify about the calculation of the family Max. When you calculate the Family Maximum Benefit amount, you always use your Full Retirement Age Benefit in the calculation regardless of when you actually filed for social security benefits.

If you file for social security benefits early at age 62, instead of using the reduced 62 age benefit of $1,200 social security benefit to calculate the remaining amount available for your children, you have to use the FRA benefit of $1,700 in the formula before determining how much your children are eligible to receive.

Social security would reduce the children’s benefits by an equal amount until their total benefit is reduced to the family maximum limit.

These are the steps:

1) Max Family Benefit = $1,700 (FRA) x 150% = $2,550

2) $2,550 (Family Max) - $1,700 (FRA) = $850

3) Divide $850 by 4 eligible children = $212.50 for each child

This results in the following social security benefits paid to retiree and their 4 children:

You: $1,200

Child 1: $212.50

Child 2: $212.50

Child 3: $212.50

Child 4: $212.50

We have a article on this topic the provides a detailed illustration of the calculation: https://www.greenbushfinancial.com/al...