Social Security payments could be getting smaller for some seniors. The government has closed two loopholes that can negatively affect recipients.
One loophole let married couples claim Social Security benefits, then immediately suspend them. Low-income or single-income couples could then claim benefits based on which spouse earns more. That law has now changed.
“What the new law basically says is that if you claim and suspend your benefits, not only do you not get the benefits, but neither do any of your family members,” said Webster Phillips of the National Commission on Social Security.
Another loophole that’s been closed is geared more toward dual-income couples. The law allowed people at the full retirement age of 66 to file a “restricted application,” letting them collect a spousal benefit while their own increased.
Social Security recipients are advised to contact their local Social Security Administration office to see how the new laws affect them.
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