To answer your follow-up question: Yes, you should proactively report significant income changes to Social Security throughout the year. You can do this by calling them directly or visiting your local office. Many people don't realize this, but if you expect to earn over the limit, you can ask SSA to start withholding some benefits in advance to avoid an overpayment situation. They can adjust your benefits throughout the year based on your estimated earnings. And regarding your pension question - correct, regular pension income doesn't count toward the earnings limit. Only wages from jobs and net earnings from self-employment count.

Just wanted to add a few practical tips for anyone dealing with the earnings limit: 1. Keep detailed records of your monthly earnings - don't rely on SSA to track everything perfectly. I use a simple spreadsheet to monitor my year-to-date earnings. 2. If you're self-employed, remember they count NET earnings, not gross income. So you can deduct legitimate business expenses. 3. There's actually a "grace year" rule for the first year you claim retirement benefits where they use a monthly test ($1,896/month for 2025) instead of the annual limit. This can be helpful if you retire mid-year. 4. Bonuses, overtime, and vacation payouts all count toward the earnings limit, so factor those in when planning your work schedule. The system is definitely confusing, but once you understand the rules it becomes more manageable. Good luck with your part-time work plans!

I'm so sorry for your loss, Diego, and congratulations on getting your survivor benefits approved! As someone who's new to this community, I've been following this entire thread and it's been incredibly educational. Your experience really shows how important it is to have clear, accurate information about these processes. The fact that you got approved in 5 weeks with back pay is encouraging for others who are waiting or planning to apply. What strikes me most is how much more helpful this community discussion has been compared to official SSA resources - the payment schedule based on YOUR birth date (not your husband's) is such a crucial detail for budget planning, yet it seems like something their representatives rush through or don't explain clearly. Thank you for taking the time to update everyone with your results. Real experiences like yours make all the difference for people navigating this difficult process during an already challenging time.

Thank you so much for sharing your experience, Diego! I'm new to this community and currently researching survivor benefits for my own situation. Your detailed account of the 5-week approval process and confirmation that payments follow YOUR birth date (not your spouse's) is incredibly helpful. I'm sorry for your loss, but it's encouraging to see that the process can move relatively quickly and that you received back pay to your application date. The practical details you've shared - like knowing you'll receive payments on the 4th Wednesday based on your birthday - are exactly the kind of information that's so hard to find on the official SSA website. This whole thread has been more informative than hours of trying to navigate government resources. Congratulations on getting through what I know must have been a difficult and stressful process during an already challenging time.

I went through this exact same situation with my daughter two years ago when I started drawing early retirement at 62. The transition from SSI to DAC benefits was incredibly confusing and stressful, especially when her monthly payment dropped by almost $200. Here's what I learned that might help you: **The Medicaid protection is crucial** - Make sure to specifically ask SSA about "Section 1634(c)" when you call. This should automatically protect her Medicaid coverage, but you need to verify it's in place. I also called our state Medicaid office directly to confirm the protection was active. **Concurrent benefits saved us** - Since her DAC payment was less than the federal SSI rate, she qualified for a partial SSI payment to make up most of the difference. SSA should have calculated this automatically, but they missed it initially. When I called back and specifically asked about "concurrent benefits," they were able to add the supplemental SSI payment. **The work rules are actually better** - With DAC benefits, the earnings limit is much higher ($1,550/month in 2025) compared to SSI's complex work incentive rules. Her $200/month from the sheltered workshop is completely safe. **Long-term this is better** - No more $2,000 asset limit stress, and when Medicare starts in 2 years, having both Medicare and Medicaid provides much more comprehensive coverage. The key is being persistent and knowing the right terminology when you call. Don't let them brush you off - these protections exist specifically for situations like this. It took me three calls and two supervisors, but we got everything sorted out. Your daughter should end up in a more stable situation once the transition is complete!

I'm so sorry you're dealing with this confusing transition! This exact situation happened to my brother when he turned 27 and our dad started collecting Social Security. It's incredibly frustrating when you're not prepared for it. What you're describing sounds like your daughter was automatically converted from SSI to DAC (Disabled Adult Child) benefits when you started receiving retirement benefits. The payment amount is based on your work history rather than the federal SSI rate, which explains why it could be lower. Here are the key things I learned that you should ask SSA about immediately: **Medicaid Protection** - Ask specifically about "Section 1634(c)" or "mandatory Medicaid continuation." This should automatically protect her Medicaid coverage during the transition, but you need to verify it's active. **Concurrent Benefits** - Since her new DAC payment is lower than what she was getting on SSI, she might qualify for a partial SSI supplement to make up some of the difference. This should have been calculated automatically but sometimes gets missed. **Work Rules are Better** - Good news about her sheltered workshop! DAC benefits have much higher work limits than SSI. The current limit is $1,550/month, so her $200 is completely safe. Don't give up if the first SSA representative doesn't know about these protections - ask for a supervisor. It took me several calls but we eventually got my brother set up with both the Medicaid protection and partial SSI supplement. The silver lining is that DAC benefits don't have the strict $2,000 asset limit, and in 2 years she'll have both Medicare and Medicaid which is actually better coverage overall. Hang in there!

One more consideration that might help with your planning - if you're concerned about the Medicare IRMAA surcharges, you could potentially use a 1031 like-kind exchange to defer some of the capital gains if you're buying another property. While this is more commonly used for investment properties, there are some scenarios where it might apply to primary residences if you're moving to a new home. However, this gets pretty complex with the primary residence exclusion rules, so you'd definitely need to work with a tax professional who specializes in real estate transactions. Another option some people use is an installment sale if you're selling to a buyer who's willing to structure it that way - this spreads the capital gains over multiple years rather than recognizing it all at once. Both strategies have pros and cons, but they're worth exploring if minimizing that income spike is a priority for your Social Security and Medicare planning.

I went through a very similar situation about 3 years ago when I sold my family home after 28 years. Had about $180k in capital gains after the exclusion. Can confirm what others have said - it absolutely did NOT affect my Social Security benefits calculation or the earnings test since I wasn't working anymore. BUT the Medicare IRMAA hit was real - paid an extra $2,400 total over those two years in higher premiums. The good news is my premiums did go back to normal once the lookback period passed. One thing I wish I'd known earlier - you can actually appeal the IRMAA if your income drops significantly after the house sale year using that SSA-44 form someone mentioned. I didn't find out about that until it was too late! Also definitely keep every receipt for home improvements - I found documentation for about $35k in improvements over the years that reduced my taxable gain. The key is having good records going back decades.

Mary, I went through something very similar when we adopted our grandson two years ago! Your situation sounds almost identical - my husband was already collecting SS and I was still working full-time. The good news is that all the information people have shared here is spot-on. Just wanted to add one thing that really helped us: when you go for your appointment, bring a small notebook to write down everything they tell you. The SSA worker gave us so much information that day, and I was worried I'd forget important details later. Also, don't be discouraged if they seem to ask the same questions multiple times - they're just being thorough. The whole process took about 9 weeks for us, but once those monthly payments started coming in, it was such a relief! The amount was right around 48% of my husband's benefit, which really helped with all the extra expenses that come with suddenly having a child in the house again. You're doing such a wonderful thing for your granddaughter, and this financial support will make the transition so much easier for your whole family.

Just wanted to jump in as someone who works with families navigating adoption and benefits - you've gotten some excellent advice here! One additional tip that might help: if your local SSA office offers online appointment scheduling, definitely use that instead of calling. I've found it's much more reliable and you can see available time slots without the phone hassles. Also, when you do get your first payment, don't panic if the amount seems different than expected - sometimes there are small adjustments for processing fees or other factors that get worked out in subsequent months. The Representative Payee responsibilities aren't too burdensome - basically just keeping receipts for major expenses like clothing, medical costs, school supplies, etc. Congratulations on your growing family - what you're doing for your granddaughter is truly special, and having this financial support will definitely help ease some of the practical concerns so you can focus on the joy of officially making her part of your family!