What Is Deemed Filing For Social Security?
Key Takeaway:
- Deemed filing for Social Security is a provision that allows certain individuals to receive retirement or spousal benefits while also delaying their own retirement benefits to a later age.
- Individuals who are at least 62 years old and have a spouse who is receiving Social Security benefits may be eligible for deemed filing. In addition, individuals who are eligible for both retirement and spousal benefits may also qualify for deemed filing.
- The main benefit of deemed filing is the ability to receive some Social Security benefits while still delaying retirement benefits to increase the monthly amount. However, there may also be drawbacks such as reduced total benefits over time and potential tax implications. It is important to carefully consider these factors before choosing deemed filing.
Are you considering filing for Social Security benefits? Are you unsure of the process to do so? Here we explain the concept of deemed filing and how it works. You’ll gain insight into the eligibility requirements and how to apply.
Definition of Deemed Filing for Social Security
Deemed Filing refers to a situation where individuals who are eligible for both retirement and spousal benefits at the same time are “deemed” to have filed for both benefits. This means that an individual who qualifies for both benefits, and files for one of them, would be considered as having filed for the other as well. The Social Security Administration uses this method to simplify the process of applying for benefits.
In such cases, the individual would receive the higher of the two benefits. Deemed filing generally happens when an individual files for either retirement or spousal benefits before reaching their Full Retirement Age. This can sometimes lead to a lower benefit amount, so it’s important to understand the implications.
It’s worth noting that deemed filing is not applicable when an individual postpones filing for one benefit to receive a higher benefit later. In such cases, only the benefit that was actually filed for will be paid.
Pro Tip: It’s important to consider how deemed filing might impact your Social Security benefits strategy, and whether postponing filing could lead to a better outcome in the long run.
Who is Eligible for Deemed Filing?
Deemed filing for Social Security refers to the situation where an individual’s benefits are triggered automatically without them having to take any action. Eligibility for deemed filing depends on several factors such as age, marital status, and disability. Individuals who have reached full retirement age and have also filed for spousal benefits are eligible for deemed filing. Additionally, individuals who have filed for disability benefits and later become eligible for retirement benefits are also eligible for deemed filing.
It’s important to note that if an individual inadvertently files for retirement and spousal benefits at the same time, they will be deemed to have filed for both benefits and will therefore receive whichever is greater. To avoid this, individuals should be aware of their options and make informed decisions before filing for benefits.
One strategy that can help maximize benefits is to delay filing for Social Security until reaching full retirement age or even later, as this can result in higher monthly benefits. Another helpful strategy is to consider ways to increase earnings, as Social Security benefits are based on an individual’s earnings history.
In summary, it’s essential for individuals to understand their Social Security options and eligibility for deemed filing to make informed decisions and maximize their benefits. Through careful planning and attention to details, individuals can make the most of their Social Security benefits and enjoy a more secure retirement.
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Benefits and Drawbacks of Deemed Filing
Benefits and Drawbacks of Deemed Filing
As an individual approaches retirement age, they may consider applying for Social Security benefits. Deemed filing, also known as automatic filing, is the process wherein the Social Security Administration automatically enrolls an individual in retirement benefits when they turn 70 years old or when they apply for disability benefits. While deemed filing may have its advantages, it also comes with certain drawbacks.
Benefits:
- Deemed filing can save time and effort, as it eliminates the need to submit a separate application for Social Security benefits.
- It ensures that individuals do not miss out on potential benefits by delaying their application.
- Individuals can receive a retroactive payment of up to six months for any benefits they may have missed before deemed filing.
Drawbacks:
- Deemed filing may lead to a reduction in monthly benefits, as individuals who claim their benefits early typically receive a reduced benefit amount.
- It may not be the best option for those who plan on working past full retirement age, as continuing to work while receiving benefits can result in a reduction in benefits.
Additionally, it’s important to note that deemed filing does not affect spousal or survivor benefits, which may be affected by different factors.
While deemed filing may be a suitable option for some individuals, it’s important to consider all factors before making a decision. Those who plan to continue working past full retirement age may benefit more from delaying their application, while those who want to receive benefits as soon as possible may find deemed filing to be beneficial. Ultimately, it’s important to consult with a financial advisor or Social Security specialist to determine the best course of action.
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How to Apply for Deemed Filing
Deemed Filing for Social Security Application
When applying for Social Security, deemed filing means that if you are eligible for both your own retirement benefit and your spouse’s benefit, the Social Security Administration will assume that you want to receive both benefits at the same time. Here’s how to apply for deemed filing:
- Submit a Social Security application online, over the phone, or in person at your local Social Security office.
- Indicate that you are filing for both your own retirement benefit and your spouse’s benefit.
- Provide the necessary documentation, such as birth certificates, marriage certificates, and Social Security numbers of you and your spouse.
It’s important to note that deemed filing does not guarantee a higher benefit amount, as the monthly benefit amounts will be calculated based on your individual work histories. Also, if you want to delay receiving your own benefit to a later date, you must file a restricted application.
If you are eligible for deemed filing and do not apply for both benefits at the same time, you may miss out on potential benefits. Don’t let this opportunity pass you by – apply for deemed filing today.
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Key Considerations and Additional Information on Deemed Filing
Deemed filing for social security refers to the automatic enrollment in both retirement and spousal benefits at Full Retirement Age (FRA). It is important to understand the implications of deemed filing as it can affect the amount of benefits received and the timing of claiming benefits.
When an individual applies for one type of benefit, deemed filing occurs and the individual is assumed to be applying for all benefits they are eligible for. The decision to claim benefits early or delay until later can impact the overall amount received. Additionally, individuals who claimed benefits before FRA may be subject to an earnings limit that could reduce their benefits.
It is important to note that deemed filing does not occur if an individual applies for benefits after FRA. Additionally, individuals who are widowed or divorced may be eligible for benefits based on their spouse’s record, and the timing of these claims could also affect the overall amount received.
The concept of deemed filing was introduced in the Social Security Act of 2000 in response to concerns about the complexity of the filing process. The goal was to simplify the process and increase the number of individuals who claim the benefits they are entitled to.
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Five Facts About What Is Deemed Filing For Social Security:
- ✅ Deemed filing is the automatic start of receiving Social Security retirement benefits at age 70 if you have not already started receiving benefits before then. (Source: Social Security Administration)
- ✅ Deemed filing can also occur if you are eligible for Social Security benefits as a spouse and have not filed for your own benefits yet. (Source: AARP)
- ✅ Delaying receipt of Social Security benefits past your full retirement age can increase the monthly benefit amount you receive. (Source: CNBC)
- ✅ It is important to carefully consider when to start receiving Social Security benefits, as it can impact the amount you receive over your lifetime. (Source: Forbes)
- ✅ You can check your estimated Social Security benefits and explore different retirement scenarios using the Social Security Administration’s online Retirement Estimator tool. (Source: Social Security Administration)
FAQs about What Is Deemed Filing For Social Security?
What is deemed filing for social security?
Deemed filing is when an individual who is eligible for retirement benefits, files for Social Security benefits when they turn 62 years of age or older. It is called deemed filing because the individual is deemed to have filed for all types of benefits, including spousal and survivor benefits.
Can I choose not to do deemed filing for social security?
Yes, you can choose not to do deemed filing and delay your retirement benefits until a later date. This way, you could receive higher benefits by earning delayed retirement credits.
What are the disadvantages of deemed filing for social security?
The main disadvantage of deemed filing is that you may receive lower benefits than if you had delayed filing. For example, if your spouse or ex-spouse is entitled to a higher benefit, you may receive a lower benefit if you choose deemed filing.
Can I cancel my deemed filing for social security?
You can withdraw your Social Security application if you did deemed filing within 12 months of filing, and repay the benefits you already received. This will allow you to reapply for benefits at a later date and receive a higher benefit.
What is the difference between deemed filing and non-deemed filing for social security?
Non-deemed filing is when an individual files only for the specific benefit they want, for example, just retirement benefits. This allows them to delay filing for other benefits such as spousal or survivor benefits, and receive higher benefits in the future.
When should I consider deemed filing for social security?
Deemed filing may be beneficial if you have a lower earning history and have little to no chance of receiving a higher benefit from spousal or survivor benefits. Additionally, deemed filing may be beneficial if you have health concerns and want to receive benefits as soon as possible.
