Retirement Savings and Benefits
Questions and comments about IRAs, 401k accounts, social security, and other forms of retirement savings and benefits.
decline ssdi auxiliary benefits?
Posted by: Fairmark2014, August 25, 2017 01:53PM
I am married with 3 small children, filing jointly, receiving social security disability for MS. Can my spouse decline her spousal ssdi auxiliary benefits thereby increasing the amount my children will receive in auxiliary benefits? This would lower our taxes since my children would not have to pay taxes and my wife and I are lucky enough to be in a high tax bracket.

Re: decline ssdi auxiliary benefits?
Posted by: Sven, August 29, 2017 03:45PM
My first thought was whether the Kiddie Tax would be a problem and then I focused on the fact the money they each would receive would be SS benefit money. SS does not start to get taxed until moderately high income levels, even for single people. I doubt each child would get anywhere near that amount. As far as I know, SS benefits the kids would receive are not added to SS benefits the parents receive. Absent some other reason she might not want to decline, it looks like it would be a good idea for the spouse to decline.

Re: decline ssdi auxiliary benefits?
Posted by: triad, August 29, 2017 07:12PM
FWIW, do you get insurance through the ACA? If yes, the children's SSA benefits are added in, but only if they file taxes for some other reason. $6350 in 2017.

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