Hi Larry, My 39 year old husband applied (and was quickly approved) for SS disability benefits last year when he was diagnosed with a terminal illness. During the process, the Social Security Rep advised me to file for my 2 children and myself at the same time. After he died, the 3 of us began receiving benefits, in equal amounts, up to the family max. Now that I am preparing to go back to work, can I decline benefits? If so, or if my benefits are reduced to zero due to income limits, will my children's benefits be recalculated, so that they each receive the 75% of my husbands PIA up to the family max? Or because I accepted benefits at all, will the kids always receive the current amount? I've called SS twice and received two different answers! Thank you for your help.

Hi,

I'm sorry for your loss.

You can't really decline benefits, but if you return to work and earn too much to be eligible for your benefits your children's benefit rate will be adjusted accordingly. As you point out, their original benefit rate before any adjustment for the family maximum would be 75% of your husband's primary insurance amount (PIA), so that's what they should end up receiving for any months that your earnings are too high for you to receive benefits.

This process can be confusing because Social Security starts out each year working only with your estimate of how much you think you will earn in that year. As a result, the proper rate adjustments may not occur until the year is over and your correct earnings are known. Just try to make sure that you give Social Security an accurate estimate of what your earnings will be, and then report the actual amount to them after each year is over.

Best, Jerry