As regular readers know, I am a fan of Ed Slot and the monthly newsletter on retirement accounts. The company, which charges itself as “American IRA experts,” also offers useful social security newsletters created by Heather Schreiber, an expert in the field.
In a recent edition of the newsletter, Schreiber discussed “caregiver’s interests.” This refers to a widow (ER) who is responsible for raising a young child who has lost his or her parents. Regulations related to caregivers are complex and most individuals are unfamiliar with.
Caregiver benefits
Children under the age of 18 are eligible for survivor benefits if an individual dies after earning sufficient Social Security credit to qualify for retirement benefits. Surviving children are entitled to 75% of the full retirement benefits of deceased parents known as “primary insurance amount” or PIA.
The amount of the PIA is based on wages of the deceased parent acquired under Social Security, and his or her profits were at full retirement age. In addition to the survivor benefits available to the deceased worker’s children, the surviving parent (known as the mother or father’s benefit) is also eligible for 75% of the PIA if the parent is responsible for caring for the dependent child. Dependent children are eligible to receive survivors up to age 18 or graduate from high school (but not under 19). An exception is when the child is disabled and begins before the age of 22.
Parents of children are entitled to the benefits of caregivers as long as the child receives survivor benefits. The total amount of total benefits, known as the family maximum, is paid to the child and caregiver’s parents. The limit on how much you can pay a caregiver is based on revenue. In 2025, if caregivers earn more than $23,400 a year, Social Security withholds $1 for every $2 revenue over $23,400. If your income is less than $23,400, your caregiver is eligible for 75% of the PIA and is the most qualifying member of the family. The largest range for families is 1.5-1.8 times the full payment of the worker, based on the four-stage formula. You will be caught up in “Family Benefits” by referring to the IRS publication “Retirement Benefits.”
The benefits of divorced individuals
As long as the marriage lasts at least 10 years and subsequent marriages occur after age 60, divorced individuals are entitled to the survivor’s benefits, even if they remarried and their new spouse is alive. Suppose the woman’s ex-husband dies. If she reaches full retirement age, she is entitled to 100% of her former Social Security benefits.
This differs from how a spouse’s interest works in a divorce. Consider the case of a woman who divorced 10 years after marriage and remarried after the age of 60. Even if her original Social Security benefits exceed that of her current marriage partner, she is not entitled to the benefits of her spouse after the subsequent marriage, even after age 60.
Many individuals do not qualify for the benefit of their original spouse after remarriage, but do not understand that they are entitled to the benefit of the survivor based on their original Social Security work records. Survivors are not only eligible, even if they have higher Social Security benefits, but are based on work records or survivor benefits, not both, not both.
Disability income at full retirement age
Individuals who become disabled before reaching full retirement age will receive disability compensation as if they had already reached full retirement age. For this reason, they are not entitled to additional benefits when they reach full retirement age. They are subject to cost-of-living adjustments each year while they are disabled. However, disabled individuals are entitled to a higher income, such as survivor benefits, if their new spouse or EX dies and Social Security benefits exceed disability benefits. The benefits of original survivors only apply in subsequent marriages after the age of 60. The spouse’s option applies only if the current spouse applies for benefits, with 50% of Social Security benefits exceeding those with disabilities.
Elliot Raphaelson welcomes your questions and comments at rapelliot@gmail.com.
