Child's Social Security Benefits and Work Deductions - Melvin
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Child’s Social Security Benefits and Work Deductions

by Melvin Cook

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F became entitled to child’s social security benefits in January 1959 when her father passed away. She continued to receive benefits of $56 per month until September 1963, the month before she turned 18 years old. Because she attained age 18 and was not disabled, her benefits stopped at that point.

F obtained a job in June 1963 and earned more than $100 per month for the rest of the year. She earned a total of $1,685 through the end of December.

At the time, work deductions were imposed against social security benefits if the beneficiary earned more than $1,200 in a year. The excess earnings reduced benefits 50 cents on the dollar for the first $500 of excess earnings. Benefits were reduced dollar for dollar for excess earnings after the first $500.

F had excess earnings of $485 for the year. Because this Thus, her benefits were required to be reduced by $242 (which was one-half if $485, reduced to the next lowest multiple of $1). Benefits were required to be reduced for each month in the year in which F earned more than $100. (Work deductions applied for months in which a person was under age 72, was entitled to benefits, and earned more than $100 in wages or rendered substantial services in self employment).

Because the excess earnings were greater than F’s monthly benefit amount, her monthly benefits were reduced by their full amount (i.e., to zero) until the excess earnings were exhausted. Thus, F’s benefits for the months of June through September 1963 were reduced to zero and she was charged an overpayment.

F protested. Her argument was that only her earnings from June through September should be counted for purposes of determining if work deductions should be imposed, because her benefits ended after September. Because she earned $951 from June through September of that year, which was lower than the threshold yearly amount for imposing work deductions, she argued that her benefits should not be reduced at all.

Her argument made intuitive sense. The problem was that it was not consistent with the plain statutory language. Unfortunately for F, work deductions were imposed, thus reducing her benefits for June through September to zero. The overpayment was affirmed.

See Social Security Ruling 64-58.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.

Contact a Salt Lake City Attorney Committed to Protecting Your Rights

When it comes the family law and social security disability, each client and case is different. It is also important to select an attorney with the experience, skills and professionalism required to address your legal issues. To learn more, contact the Salt Lake City law offices of Melvin A. Cook and schedule an initial consultation to discuss your case.

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