social security questions

[steve-phuket 10]

my wife is 52 now and we are applying for I-485 adjustment of status, I-130 is already approved, we're hoping for green card some time next year.

 

assuming she starts working at 53 and works 10 years, and earns more than $5,880 per year (she'll be self employed i expect) she will get the 40 points necessary to qualify for SS (https://www.aarp.org/retirement/social-security/questions-answers/work-length-social-security/)

 

so i have a couple of questions. if she earns less than $12800, which she likely will, she's not required to file a tax return. but we would want to just so we can pay SS contributions. how do we file for that? note that i think we will not file jointly since i am on SS already.

 

at 63, when she has 40 points, if she elects to start getting SS, how much will it be? all the calculators i've seen on line assume you have worked all your life, not just 10 years. but i'm assuming it will be the minimum benefit of  $886 per month (2020 number). is that correct?

 

would there be any point in her waiting to 65 or 67 given that her contributions are so small?

 

and finally, i would hope she has citizenship in 10 years but if she's still on a green card, i think she's still eligible for SS right?

 

thanks, steve

 

 

 

[Lil bear 4,201]

14 minutes ago, steve-phuket said:

my wife is 52 now and we are applying for I-485 adjustment of status, I-130 is already approved, we're hoping for green card some time next year.

 

assuming she starts working at 53 and works 10 years, and earns more than $5,880 per year (she'll be self employed i expect) she will get the 40 points necessary to qualify for SS (https://www.aarp.org/retirement/social-security/questions-answers/work-length-social-security/)

 

so i have a couple of questions. if she earns less than $12800, which she likely will, she's not required to file a tax return. but we would want to just so we can pay SS contributions. how do we file for that? note that i think we will not file jointly since i am on SS already.

 

at 63, when she has 40 points, if she elects to start getting SS, how much will it be? all the calculators i've seen on line assume you have worked all your life, not just 10 years. but i'm assuming it will be the minimum benefit of  $886 per month (2020 number). is that correct?

 

would there be any point in her waiting to 65 or 67 given that her contributions are so small?

 

and finally, i would hope she has citizenship in 10 years but if she's still on a green card, i think she's still eligible for SS right?

 

thanks, steve

 

 

 

As self employed, she must file a return as she will be required to pay for her own tax and SS

The calculation of SS income is a complex calculation that uses income over the earning years.. i doubt you’ll find one that will handle this .. she will be eligible to get her SS or spouse SS income at retirement age.. USC or LPR. In my thinking, any extra income is better than nothing .. but i hope you’re not counting on getting anything … because so many life changes happen 

 

ssa income is reduced if she takes it before her full retirement age.. determined by her birth year and will be over 66   You’ll have to do the calculations 

 

best to speak with a local tax support agency .. they can help answer lots of questions 

Edited August 30, 2021 by Lil bear

[JeanneAdil 6,498]

Self employed people pay into SS,  medicare and federal taxes quarterly/ as far as SS all depends on income /they look at last 5 years of work

but more important is to pay into medicare as she is not eligible under yours/  she has to have her own health care insurance

following site tells how to pay the quarterly estimated taxes

 

https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

 

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 and 1040-SR instructions.

 

and yes,  even if a foreigner leaves the US ,  they are eligible for SS 

my daughter in law is from England and her dad worked here 12 years,  he gets SS payments in England

Edited August 30, 2021 by JeanneAdil

[JeanneAdil 6,498]

Let me correct myself

If you are getting SSA (retirement benefits) and getting medicare ,  wife can not get medicare while u are alive/she would need her own health care insurance 

if she becomes a widow,  she is eliglble for these benefits at age 60,  50 if you were disabled and getting SSI

 

https://www.ssa.gov/osss/prd/html/en/moreInfoLink01.html

 

and yes,  full benefits at age 67 now so all depends on what happens 

[Wuozopo 4,293]

@steve-phuket

 

At age 65 your wife will be eligible for Medicare based on her own SSA record of at least 40 quarters or based on your record (as her spouse) if you had 10 years of paying Medicare taxes. Part A (Hospital coverage) has no premium. Part B (medical coverage) has a premium for everybody. It is also possible to “buy in” to Part A if neither of you reached 40 quarters yet. Permanent resident or citizen.

 

4 hours ago, steve-phuket said:

note that i think we will not file jointly since i am on SS already.

Filing jointly will likely be your best choice. You need to work out three returns to check it out—two separate returns and a joint return. See which has more tax, separate+separate or joint. I ‘m not talking about refunds, but comparing the line that says total tax (Line 24 this year). Also a comment on self employment and quarterly payments. If you file a joint return, any excess you might pay in goes to cover what her self employment generates in taxes.  If she has a big income, then she probably needs to pay some in. If she’s not earning much, then up your deductions a bit or add voluntary tax withholding  to your Social Security. It’s all one pot of money on a joint return so she does not have to contribute in her specific name if you over contributed.  If you get a hefty refund each year, that may be enough to cover her taxes, social security, and Medicare quarterly payments. That’s what we do. 
 

4 hours ago, steve-phuket said:

but i'm assuming it will be the minimum benefit of  $886 per month (2020 number). is that correct?

Nope. Lots of special rules, years paid in, minimum earned, and low income status to qualify for that. 
 

4 hours ago, steve-phuket said:

would there be any point in her waiting to 65 or 67 given that her contributions are so small?

I will venture a big No. The money you leave on the table by not collecting monthly benefits at age 62 would take probably 15 years to make up for the small increase waiting. Life is uncertain….grab what you can when it’s available. She also can claim Social Security benefits based on your record as your wife, widow, or even your former wife.

 

And to throw out one more thing to consider. With some countries with a state pension or social security like government program, It is possible to combine years with her foreign work years to gain enough credits to receive social security without getting in 10 US years. 
 

Also there is a Windfall Elimination Plan (WEP) in place where if she receives any government  type SS plan from abroad, it can reduce her Social Security benefits. It’s all very complicated and does my head in when I try to grasp all the components as a late arrival immigrant myself.