Widow’s Social Security benefits can be blended with her own

Q: I am 63 and living on Social Security widow’s benefits. Although I was employed since I was 16, my income as a woman, even though I have a master’s degree and held positions of higher responsibility, was significantly less than my husband’s. My benefits at 65 would be the same as I’m receiving now as his widow. Should I stay on the widow’s benefits and switch to my benefits at 70, which would then be more than my current benefits, and can I? Am I eligible for Medicare at age 65 if using his Social Security? I’ve thought of returning to work but at my age it is unlikely I would get anything but a low-paying, part-time job despite my degrees and experience. I am not sure if returning to work would create more problems than it would solve. I can’t get the same answer twice from Social Security personnel. (It took me three months to find someone who would allow me to collect the widow’s benefit at 62.) So any guidance you could supply would be appreciated. – J.C.

First, yes, widows can allow the benefit based on their own work record to grow, increasing 8 percent per year, while collecting a widow’s benefit that is reduced because of an early claim. Last fall’s budget legislation ending the option to file a restricted application just for spousal or just for earned benefits (for those who were younger than age 62 in 2015) doesn’t affect widow’s benefits. And, yes, you can qualify for Medicare as a widow receiving Social Security benefits on her deceased husband’s record.

There are a couple of curiosities in your letter, however. If your income was far below your husband’s for many years, it seems odd that his survivor benefit would be so close in size to your own benefit, even though it has been reduced because you claimed before full retirement age. If he died at a relatively young age and had a substantial number of zero-income years, that might explain it. If you were a widow when you were age 60, you most likely would have qualified for a widow’s benefit then, not at age 62. All of this makes me wonder if you are actually receiving a benefit that is a blend of the one on your own work record and the widow’s benefit. Check back with the Social Security office and ask if you are, indeed, only receiving a widow’s benefit and tell them you intend to delay claiming your own benefit until age 70. If you’re already getting a blend of both benefits, there would be no delayed claiming of your work-record benefit and the check would simply rise with inflation over time.

As for getting a part-time job before your full retirement age, Social Security deducts half of your benefits for annual income earned that’s more than $15,720. In other words, $1 is deducted from every $2 earned above the limit. People who reach full retirement age this year will have $1 of every $3 earned above $41,880 deducted until the month they hit full retirement age, according to the Social Security Administration. These withheld benefits are reworked back into your benefit formula once you reach full retirement age, but you don’t get them back in a lump sum.

Meanwhile, if you file an individual tax return, any income below $25,000 avoids the trigger for federal income tax on Social Security benefits. If your income is between $25,000 and $34,000 you’ll owe taxes on 50 percent of your benefits, and above that level, up to 85 percent of your benefits may be taxable, Social Security says.

This story was originally published February 2, 2016 at 3:22 PM with the headline "Widow’s Social Security benefits can be blended with her own."