Impact of Earnings on Social Security Benefits for a Widow and Her Children

A woman referred to me whose husband passed in November at age 46. She is also age 46. She is scheduled to collect SS for her two kids ages 11,13. She isn’t currently working. She will go back in 2023.  Will her earnings affect the SS her children receive?

In this situation, the woman's earnings will not directly impact the Social Security benefits that her children receive. Social Security benefits paid to minor children based on a deceased parent's record are not affected by the surviving parent's income. The two children, ages 11 and 13, will continue to receive their benefits regardless of whether the mother returns to work in 2023.

However, the mother's earnings will affect any benefits she might receive herself. If she decides to apply for the child-in-care benefit, which is available to a surviving spouse caring for children under age 16, her earnings could reduce or even eliminate her eligibility for this benefit due to the earnings test. The earnings test reduces Social Security benefits by $1 for every $2 earned above a certain threshold if the surviving spouse is under Full Retirement Age (FRA). For 2023, the earnings limit is $21,240.

It’s also important to consider the Family Maximum, which caps the total amount of benefits that can be paid to a family based on one worker’s record. The Family Maximum typically ranges between 150% and 180% of the deceased worker’s full retirement age benefit. This means that if the mother does apply for and receive a child-in-care benefit, it may reduce the amount the children receive, as the total paid cannot exceed this maximum limit.

Given these factors, the mother might want to carefully consider her earnings in relation to applying for the child-in-care benefit. It might be advantageous to delay returning to work until she fully understands the impact on her potential benefits and the Family Maximum.

The content on this blog is for informational purposes only and is not legal, financial, or professional advice. Social Security rules change periodically, so some information may become outdated. For the most accurate advice, consult a certified National Social Security Advisor (NSSA®). Social Security Professionals, LLC, and NSSA® are not responsible for any errors, omissions, or actions taken based on this blog's content. Use of this blog does not create a client relationship, and all information is provided "as is" without guarantees. By using this blog, you agree to hold Social Security Professionals, LLC, and NSSA® harmless from any claims or liabilities arising from its content. For personalized guidance, contact an NSSA® professional.