Ch 11: Social Security
Emile is single and received $28,000 of dividend income during the year. He also received $18,000 of Social Security benefits. What portion of his Social Security benefits are taxable?
$7,050 Lesser of: 85% of 18k= $15.3k OR 0.85[28k+0.5(18k)-34k]= $2,550 plus $4,500
Betty Sue, age 75, is a widow with no close relatives. She is very ill, unable to walk, and confined to a custodial nursing home. Which of the following programs is likely to pay benefits towards the cost of the nursing home? 1. Medicare may pay for up to 80 additional days of care after a 20-day deductible. 2. Medicaid may pay if the client has income and assets below state-mandated thresholds.
2 only
Brisco, now deceased, was married for 12 years. He had two dependent children, ages 10 and 12, who are cared for by their mother age 48. Brisco's mother, age 75, was his dependent and survived him. At the time of his death, he was currently but not fully insured under Social Security. His dependents are entitled to all of the following benefits except:
A parent's benefit.
All of the following statements concerning the Social Security system are correct except:
A special one-time payment of $1,000 may be made to a deceased worker's spouse or minor children upon death.
Which of the following concerning the Social Security system is correct?
A worker who takes early retirement benefits will receive a reduced benefit because he will receive more monthly benefit payments as payments commence earlier than if the worker had waited and retired at full retirement age.
A worker's AIME: 1. Must be determined by converting actual earnings into current dollars through an indexing factor. 2. Is determined from wage information over prior years' work. 3. Uses the highest 35 years of indexed earnings (for workers that worked at least that long). 4. Yields an average amount of monthly earnings for all indexed years.
All of the above
Which of the following statements are true for the PIA of individuals who first become eligible for retirement benefits in 2020? 1. Their PIA is 90% of the first $960 of their AIME, plus other amounts. 2. Their PIA is 32% of their AIME over $960 up to $5,785, plus other amounts. 3. Their PIA is 15% of their AIME that exceeds $5,785, plus other amounts.
All of the above
Antoine immigrated from Italy last century, became a citizen and has worked the better part of his life in the United States, for which he is truly thankful. His full retirement age for Social Security benefits is age 66, but after a hard life working he wants to retire at age 63 and travel in America and back to his homeland. Antoine sold his restaurant for $150,000 and was retained by the acquiring company as a consultant for a one-year period. His consulting fee this year will be $50,000 and the benefit he expects to receive from Social Security is $2,000 per month. Which of the following statements is correct?
Antoine would be better off beginning Social Security benefits next year.
All of the following statements concerning Social Security benefits are correct except:
In order to obtain SSI benefits, an individual must be age 65 or older and must be disabled.
Part B of Medicare is considered to be supplemental insurance and provides additional coverage to participants. Which of the following is true regarding Part B coverage?
The premiums for Part B are paid monthly through withholding from Social Security benefits.
Antoine immigrated from Italy last century, became a citizen and has worked the better part of his life in the United States, for which he is truly thankful. His full retirement age for Social Security benefits is age 66, but after a hard life working he wants to retire at age 63 and travel in America and back to his homeland. After contacting the Social Security administration, they informed him that his benefit at age 63 would be $1,200 per month. Just prior to retiring, he sold his business for $100,000. Which of the following statements is correct?
The sale of the business will not impact the amount of his retirement benefits from Social Security.
Joyce and Melvin have been married for 30 years. In 2020, they received $22,000 of Social Security benefits and had $12,000 of interest income. What portion of the Social Security benefit is taxable?
$0. Lesser of: 50% of $22k = $11,000 or 0.5 [$12,000 + 0.5 ($11,000) - $32,000] < 0
Kathryn taught at Fun Academic University for 25 years and is filing for Social Security retirement benefits this year, when she turns age 72. Her PIA is $1,000 per month as adjusted for inflation. How much in benefits will she receive assuming her full retirement age was 66?
$1,320 Delayed benefits will increase at 8% per year of delay up until age 70. Therefore, her benefit will be 32% higher than her PIA. She has no increase for delaying beyond age 70 and the 8% increase is not compounded.
Antoine immigrated from Italy last century, became a citizen and has worked the better part of his life in the United States, for which he is truly thankful. His full retirement age (normal retirement age) for Social Security benefits is age 66, but after a hard life working he wants to retire at age 63 and travel throughout America and back to his homeland. If his benefit at age 66 is $1,000 per month, how much will he receive in Social Security retirement benefits if he begins receiving benefits at age 63?
$800 The benefit reduction for early retirement is 5/9ths of 1% for the first 36 months. If Antoine retires 3 years early at age 63, then his retirement benefit will be reduced by 20% to $800 per month.
Which of the following statements concerning Medicare benefits available to those over 65 are true? 1. Medigap coverage is available to cover costs not paid for by Medicare, but only under federal guidelines. 2. A patient pays deductibles for hospital stays, but nothing for doctor visits. 3. Part A of Medicare coverage is optional for those covered by Social Security and requires a monthly premium. A)
1 only
Which of the following statements are true as to Supplemental Security Income (SSI) benefits? 1. Supplemental Security Income makes monthly payments to individuals with low income and few assets. 2. The basic monthly benefit for Supplemental Security Income in 2020 is $783.00 for one person and $1,175 for married couples. 3. The asset determination for Supplemental Security Income eligibility does not include the value of one's home or car. 4. The definition of disability is satisfied when the individual is unable to engage in any substantial gainful activity due to a physical or mental problem expected to last at least three years or expected to result in death.
1, 2, and 3
Medicare Part A provides hospital coverage. Which of the following persons is not covered under Part A?
A person 62 or older and receiving railroad retirement.
Robin Elizabeth qualifies for a retirement benefit of $250 and a spouse's benefit of $400. At her full retirement age, she will receive which of the following?
Her benefit of $250 plus $150 from her spouse's benefit.
All of the following statements concerning Social Security benefits are correct except:
If a worker applies for retirement or survivors' benefits before his 65th birthday, he must also file a separate application for Medicare.
Raymond is turning 65 years of age and has been receiving Social Security benefits. Which of the following statements concerning his eligibility for Medicare benefits is correct?
Raymond will be enrolled automatically in Parts A and B.
Which of the following concerning the Social Security system is correct?
SSI benefits are funded by the Treasury, not Social Security taxes, as are the other benefits.
Social Security is funded through all of the following except:
Sales tax.
A person receiving Social Security benefits under full retirement age can receive earned income up to a maximum threshold without reducing Social Security benefits by the earnings test. Which of the following count against the earnings threshold?
Self-employment income.
Which of the following are correct?
Surviving spouses are entitled to 100 percent of the worker's benefit amount after the worker dies.
