Survivor Benefits
MR. WATSON: Survivor's Benefits (Death Benefits)
- Spouse benefit of $255, or eligible child, (one time payout) might be payable to kids if there is no spouse
- Spouse at age 65 or 60
- Child's benefit until 18 (19 if still in school)
- Parents' benefit (if claimed as a dependent, )
MR. WATSON: When a worker dies, the spouse (or an eligible child) gets $255 in a one-time lump sum. Next, the spouse, at age 65, will receive what the worker was going to receive had he lived. Y'all got it?
ALL: Yes.
MR. WATSON: Or she can take it as early as what age?
ALL: 60.
MR. WATSON: Age 60. Very good. The only time she gets it earlier than age 60 is if we have a child under 16. Once the child turns 16, the spouse's benefits will stop and they will not begin again until at the earliest age 60. That's called the blackout period.
MR. WATSON: Let's see. Lebanon is my son, he is 10 years old. My wife, 30. How long is the blackout period? Before y'all start answering, think.
MAN: 24 years. (Correct)
MR. WATSON: 24 years. She's going to get a check because the kid was under what age?
ALL: 16.
MR. WATSON: So she will be what age when he turns 16?
ALL: 36.
MR. WATSON: Social Security stops paying her and won't begin again until, at the earliest age, 60. That's called the blackout period. Everybody got it?
ALL: Yes.
Child's Benefit
MR. WATSON: The child's benefit. The child gets a benefit until the child is 18 (19 if in high school.) Because we have a child 10 years old, the spouse is getting a check because he's under what age?
ALL: 16.
MR. WATSON: The child is getting a check until he reaches what age?
ALL: 18.
MR. WATSON: The check is for him. Once the kid turns 16, the spouse's check stops, but his continues. Does that make sense?
ALL: Yes.
Parent's Benefit
MR. WATSON: Parents' benefits: If you die, if you have been claiming your parents as dependents for at least 50 percent on your income tax return, they get a benefit.
MAN: What do you mean by 50 percent?
MR. WATSON: When you are taking a tax deduction, you may not be responsible for 100 percent of their sustenance. But if you were responsible for at least 50 percent of their sustenance, then they will get a benefit when you die. So if you are able to claim them as a 50 percent dependent and take a deduction, if you are claiming at least that, then when you die they get a benefit. Does that make sense?
ALL: Yes.
MR. WATSON: If you know one side of the equation, one column, you will know the other.
