Will my teenage son lose all survivor benefits if he earns over $1950/month at new job?
My 17-year-old daughter receives survivor benefits from her deceased mother. She's been working part-time at a local coffee shop making about $425 biweekly, but just got offered a higher-paying position at a warehouse that would pay around $2,300/month. I'm worried about how this will affect her survivor benefits. Does she completely lose the survivor benefit if she goes over the $1,950 monthly earnings limit? Or is it just reduced by $1 for every $2 she earns above that threshold? Also, do we need to report this new job to SSA immediately if she takes it? Any advice would be appreciated!
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GalaxyGlider
The earnings limit works on a $1 reduction for every $2 earned over the limit. She won't lose all benefits, just a portion based on how much she exceeds the threshold. For example, if she earns $350 over the limit, her benefit would be reduced by $175 that month. And yes, you absolutely should report the change to SSA - they don't take kindly to finding out later during reconciliation.
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Jamal Harris
•Thank you! That makes me feel better. Do you know how quickly the reduction happens? Would they reduce her next check immediately after we report the job change, or is there some processing time?
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Mei Wong
My nephew went thru something similar!! They didnt tell SS about his new job and ended up with a HUGE overpayment they had to pay back. Definately tell them right away!!
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Jamal Harris
•Oh no, that's exactly what I'm afraid of. How huge was the overpayment, if you don't mind me asking? I definitely don't want to end up owing SSA money.
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Mei Wong
•It was almost $5000 because it went on for like 8 months before they caught it!! They had to setup a payment plan and everything. Big headache for them.
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Liam Sullivan
Just to add some technical details: This is the Annual Earnings Test (AET) for survivor benefits when the beneficiary is under Full Retirement Age. The 2025 limit is $1,950/month or $23,400/year. What many people don't realize is that SSA applies this test ANNUALLY despite monitoring monthly. So if your daughter earns more during summer but less during school months, what matters is the yearly total. Also, when reporting, make sure to provide realistic estimates of future earnings - don't just report what she made in the past. You can do this reporting through your MySocialSecurity account or by calling.
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Amara Okafor
•speaking from expeirence, good luck getting through to anyone at SS to report the income change. spent 3 hours on hold last month before giving up. tried again next day, same thing.
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Jamal Harris
•This is really helpful information, thank you! I didn't realize they look at it annually. Her hours would definitely be higher in summer and during school breaks, and lower during the school year. Does that mean she might not lose any benefits if her annual earnings stay under $23,400, even if some months are over $1,950?
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Giovanni Colombo
Im confused. I thought SSI was different from survivors benefits?? My cousin gets SSI and they count every dollar he makes and reduce his check dollar for dollar. Is this a different program?
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GalaxyGlider
•Yes, they're completely different programs. SSI (Supplemental Security Income) is needs-based and has strict income and resource limits with dollar-for-dollar reduction. Survivor benefits are based on the deceased parent's work record and follow the $1 for $2 reduction rule when the recipient is under FRA. It's a common point of confusion because both are administered by SSA, but they have very different rules.
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Fatima Al-Qasimi
THE ANNUAL EARNINGS FORM IS HORRIBLE!!!!!! They make you estimate for the whole year then when you're WRONG (because who can predict exact earnings?) they send you an OVERPAYMENT NOTICE and expect you to pay it all back!!!! My daughter had to pay back $2700 because her summer job paid more than expected. SSA doesn't care that teens don't have consistent work hours!!!! REPORT EVERY PAYCHECK IF YOU CAN!!!
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Jamal Harris
•That sounds awful. I'm definitely worried about overpayments. Did your daughter have any option to appeal or get a waiver for the overpayment?
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Fatima Al-Qasimi
•We tried to appeal but they denied it because they said we "should have known" her earnings would exceed the estimate. Only way to get a waiver is prove you can't afford to pay it back, which we couldn't. Just be SUPER careful with your estimates - always estimate HIGH to be safe!!!!
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GalaxyGlider
One more important thing to consider: if your daughter is still in high school, she can continue receiving survivor benefits until she graduates or turns 19, whichever comes first, REGARDLESS of earnings. This is a special provision for students. If she's going to graduate before turning 19, you should notify SSA of her student status to possibly extend benefits beyond 18.
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Jamal Harris
•Wait, really? I didn't know about this student provision! She turns 18 in three months but won't graduate until next May. So are you saying the earnings limit might not apply if she's still in high school? That would be amazing news!
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GalaxyGlider
•I need to clarify - I was partially incorrect. The student provision allows benefits to continue until graduation or age 19, but the earnings limit still applies during this extended period. However, knowing about the student extension is still important for your planning. Make sure to submit Form SSA-1372 (Student Statement) to SSA when she turns 18 to prevent automatic termination of benefits.
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Amara Okafor
my kid lost all his benefits when he started working full time after highschool, but we didnt know we were supposed to report it. ended up owing almost $7500 back to SSA. dont mess around with this stuff, they will find out eventually through payroll taxes and you'll be on the hook.
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Jamal Harris
•$7,500?! That's terrifying. Did they make you pay it all at once or could you set up a payment plan?
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Amara Okafor
•they let us do a payment plan but still took $150/month which was tough. took years to pay off. just notify them right away, not worth the risk
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Mei Wong
Will your daughter be going to college? My friends kid still got survivor benefits during college so maybe look into that too!
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Liam Sullivan
•That's actually incorrect information. Survivor benefits for children stop at age 18 (or 19 if still in high school). They do NOT continue during college unless the child is disabled before age 22. This is a common misconception because the rules changed decades ago. Prior to 1981, college students could receive benefits until age 22, but that provision was eliminated.
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Jamal Harris
Thank you all for the helpful information! I think I'm going to encourage her to take the job since she won't lose all benefits, just a reduction. We'll definitely report it to SSA right away and I'll make sure to keep track of her annual earnings. I appreciate everyone's advice!
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Liam Sullivan
•Good decision. One last tip: keep detailed records of all communications with SSA (dates, times, names of representatives) and copies of any documents you submit. If there's ever a dispute about whether you properly reported the income change, having documentation can make all the difference. Best of luck to your daughter with her new job opportunity!
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