Social Security survivor benefits calculation shows $1,250 less than previous quote - does pension count as taxable income?

oh yeah this happens ALL THE TIME with SS reps - they contradict each other like its their job lol. I would trust the first amount they told you. When I applied last yr the first rep said one thing, second said something completely different!!

To clarify a couple things here: 1) Regarding the benefit amount discrepancy: This is concerning and unfortunately happens more than it should. The calculation for survivor benefits is based on several factors including your husband's earning record, when he claimed benefits (if he did), and any adjustments. I'd recommend requesting a detailed breakdown of the calculation from both representatives to see where the difference lies. 2) About the pension and taxation: Yes, your husband's pension that you now receive DOES count as income for determining whether your Social Security benefits are taxable. The IRS looks at your "combined income" which includes: - Your adjusted gross income - Any non-taxable interest - AND 50% of your Social Security benefits If this combined amount exceeds $25,000 for individuals or $32,000 for married filing jointly, then a portion of your benefits becomes taxable. However, this is separate from the Government Pension Offset (GPO) or Windfall Elimination Provision (WEP) which might reduce benefits if you receive a pension from work where you didn't pay Social Security taxes. Is your husband's pension from government employment where he didn't pay into Social Security?

The SAME EXACT THING happened to me!!! I got THREE different amounts from THREE different reps over 8 months when trying to figure out my survivors benefits after my husband died. It's absolutely INFURIATING how they can't get their stories straight!!! The final amount I actually received was $875 LESS than the highest estimate I was given. I cried for days because I had budgeted based on that higher amount. And YES, the pension absolutely counts as income for tax purposes. I found that out the hard way at tax time last year. Had to pay in because I hadn't withheld enough!!

The benefit amount discrepancy is definitely something to investigate further. Based on my experience, it's most likely due to one of these factors: 1. Different assumptions about your earnings record 2. Different interpretations about when you'll claim benefits 3. Different calculations regarding any potential reductions 4. Simple human error in the calculation I recommend scheduling an in-person appointment at your local SSA office with printouts of your earnings history and specifically asking for a detailed PEBES (Personal Earnings and Benefit Estimate Statement) calculation for survivor benefits. This will give you the most accurate figure. Regarding taxation: Your first representative was correct. The pension is indeed counted as income when determining if your Social Security benefits are taxable. However, this is a tax issue, not a benefit calculation issue. The pension doesn't affect the amount of survivor benefits you're entitled to (unless it's a government pension subject to GPO), but it does affect how much of those benefits might be subject to income tax.

I tried calling SSA for weeks about my survivor benefits and kept getting disconnected or waiting for hours. Finally used a service called Claimyr (claimyr.com) that got me through to a rep in under 10 minutes! They have a video demo at https://youtu.be/Z-BRbJw3puU showing how it works. Totally worth it because I was able to actually talk to someone who explained my survivor benefit calculation in detail and cleared up confusion about my late husband's pension. Much better than the conflicting info I kept getting.

To answer your specific question about taxation: Yes, your husband's pension that you now receive is counted as part of your income for determining whether your Social Security benefits are taxable. Here's how it works: - If your combined income (AGI + nontaxable interest + half of SS benefits) is between $25,000-$34,000 (single filers), up to 50% of your benefits may be taxable - If your combined income exceeds $34,000, up to 85% of your benefits may be taxable However, it's important to distinguish between: 1. Taxation of benefits 2. Calculation of benefit amount Your husband's private pension won't reduce your survivor benefit amount (since GPO doesn't apply), but it will likely push your income into the range where your benefits become taxable. Regarding the $1,250 discrepancy in quoted benefit amounts, that's significant enough that I'd request a supervisor review. The calculation for survivor benefits is straightforward when dealing with FRA claims - it should be approximately your husband's full benefit amount (including any delayed retirement credits if he waited past his FRA).

my sister had almost the same thing happen - got diff amounts from diff people and the last person was right. the first person probly just made a mistake or looked at wrong info. pensions def count for taxes tho

I think what everyone's missing here is that there could be a COLA adjustment difference between the two calculations. The 2024 COLA was 3.2% and 2025 is estimated around 2.6%. If one rep was calculating based on 2024 rates and another was including projected 2025 COLA... wait no that would make the second estimate higher not lower. Something's definitely off with their calculations.

One other possibility worth investigating: check if the first representative may have been looking at your OWN retirement benefit rather than the survivor benefit, or perhaps gave you the amount for both combined. Sometimes the retirement benefit and survivor benefit get confused in these discussions, especially if you're near retirement age yourself. Regarding taxation: You mentioned budgeting concerns, so I'll add that you can elect to have federal taxes withheld from your Social Security benefits by completing Form W-4V. This might help you avoid an unexpected tax bill later. Many survivors choose to have 10-12% withheld, depending on their total income situation.

I'm in a similar situation and found out that the SSA has an appeals process if you believe your benefit amount is incorrect. After multiple conflicting quotes, I filed for reconsideration and they actually corrected my benefit amount. Might be worth looking into if the final determination doesn't match what you believe you're entitled to.

I've been through this exact situation! The first thing you should do is request a written PEBES statement showing the detailed calculation. Having everything in writing really helped me straighten out the discrepancy in my case. When I talked with Claimyr's customer service, they mentioned that a lot of their users are survivors dealing with similar benefit calculation issues. The SSA seems particularly prone to inconsistency with survivor benefits calculations for some reason.

Whatever you do, DON'T trust what they tell you over the phone!!! Get EVERYTHING in writing!!! When my husband passed, I got THREE different benefit amounts from THREE different reps, and the actual amount I received was LOWER than all three estimates! I was counting on that money and it created a real financial hardship. The SSA makes "mistakes" that conveniently always seem to save THEM money, not us! 😡