Frequently Asked Questions About Spousal Benefits
As you plan for retirement, many questions can come up. Spousal benefits, with their specific rules and interactions with other programs, often generate a lot of curiosity. Here are answers to some of the most common questions we hear from people just like you. Thinking through these scenarios can help clarify your own path forward.
Can I work and still receive spousal benefits?
Yes, you can work while receiving spousal benefits, but you need to be aware of the annual earnings limit. This limit applies only to people who are receiving benefits *before* they have reached their full retirement age (FRA). If you are at or above your FRA, you can earn as much money as you want with no impact on your Social Security check.
For those under their FRA, there is a limit on how much you can earn from a job. If your earnings go over that annual limit, the SSA will temporarily withhold some of your benefits. The rule is that they will withhold $1 in benefits for every $2 you earn above the limit. The earnings limit changes each year. In 2024, for example, the limit was $22,320. Be sure to check the Social Security Administration website for the 2025 limit when it is announced. It’s important to report your earnings to the SSA so they can make the correct adjustments.
How do spousal benefits affect my Medicare premiums?
When you start receiving Social Security benefits, you will typically be automatically enrolled in Medicare Part A (hospital insurance) and Part B (medical insurance), assuming you are at least 65. The monthly premium for Medicare Part B is usually deducted directly from your Social Security benefit payment. For most people, this makes paying for Medicare very convenient.
Receiving spousal benefits does not, by itself, change your Medicare premium. However, your total income, which now includes your Social Security benefits, can affect your premiums. Higher-income beneficiaries may have to pay a larger monthly premium for Part B and Part D (prescription drug coverage). This is known as the Income-Related Monthly Adjustment Amount (IRMAA). The income thresholds for IRMAA are set by law and can be found on the official Medicare website.
Are Social Security spousal benefits taxable?
This is a very common question, and the answer is: maybe. Whether or not your Social Security benefits are taxed depends on your total “combined income.” The Internal Revenue Service (IRS) calculates this by taking your adjusted gross income (AGI), adding any nontaxable interest you have, and then adding one-half of your Social Security benefits for the year.
If your combined income is below a certain threshold, your benefits are not taxed. If it’s over that threshold, a portion of your benefits—up to 85%—may be subject to federal income tax. The income thresholds depend on your filing status (e.g., individual or married filing jointly). Because tax rules can be complex and change over time, it’s a good idea to get information directly from the IRS website or to consult with a qualified tax professional who can look at your specific financial picture.
What is the “deemed filing” rule again?
The “deemed filing” rule is an important one to understand because it affects how and when you can claim benefits. As we mentioned earlier, this rule primarily affects people born after January 1, 1954. In simple terms, it means that when you apply for one type of Social Security benefit, you are automatically applying for all benefits you are eligible for at that time.
For example, if you are 64 and eligible for both your own retirement benefit and a spousal benefit, you can’t choose to take just the spousal benefit while letting your own benefit continue to grow. You have filed for both, and Social Security will pay you the higher of the two amounts. This rule was put in place to prevent certain claiming strategies that were possible in the past. It simplifies the process but also reduces flexibility, making it even more important to plan your claiming decision carefully.
