When a beneficiary fails to have a child in their care, certain deductions are made to their Social Security benefits.
This article explains the deductions made under different circumstances as outlined in § 404.421.
- Deductions for Wife’s or Husband’s Benefits:
A deduction is made from the wife’s or husband’s benefits if the beneficiary is under full retirement age and does not have a child entitled to child’s benefits in their care. However, no deduction is made if the beneficiary is aged 62 or over, but under full retirement age, and has elected to receive actuarially reduced benefits.
- Deductions for Mother’s or Father’s Benefits:
a) Widow or Widower: A deduction is made from the mother’s or father’s benefits if the beneficiary is a widow or widower and does not have a child entitled to child’s benefits based on the deceased insured individual’s earnings in their care.
b) Surviving Divorced Mother or Father: A deduction is made from the mother’s or father’s benefits if the beneficiary is a surviving divorced mother or father and does not have a child of the deceased individual who is entitled to child’s benefits based on the deceased insured individual’s earnings in their care.
- Amount to be Deducted:
The amount deducted from the benefits is equal to the amount of benefits otherwise payable for the month in which the beneficiary does not have a child in their care.
- When a Child is Considered Not Entitled to Benefits:
For the purpose of deductions, a person is considered not entitled to child’s benefits for any month in which they are age 18 or over and are entitled to child’s benefits because they are a full-time student at an educational institution. This applies to benefits for months after December 1964.
Example: Susan is a 45-year-old widow with a 16-year-old son, Michael. Based on her late husband’s earnings, she is entitled to receive mother’s benefits from Social Security. Michael also receives child’s benefits based on his deceased father’s earnings. In January 2023, Michael decides to move in with his grandparents to attend a different school in another state.
In this case, Susan no longer has Michael in her care, as he now lives with his grandparents. According to the rules outlined in § 404.421, a deduction will be made from Susan’s mother’s benefits for each month that Michael is not in her care.
The amount deducted from Susan’s benefits will be equal to the amount of benefits she would otherwise receive for each month in which Michael is not in her care. This means that Susan will not receive any mother’s benefits for the months that Michael lives with his grandparents. However, Michael’s child’s benefits will not be affected by this change.
In conclusion, it is essential for beneficiaries to understand the deductions made to their Social Security benefits when they fail to have a child in their care. Familiarizing oneself with the rules and regulations will help avoid any unexpected financial repercussions.
https://www.ssa.gov/OP_Home/cfr20/404/404-0421.htm
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