TN 25 (09-11)
RS 02501.160 Adjusting for Family Maximum for Separate Households
A. Adjusting the family maximum in the separate households
Withhold any increased amounts due beneficiaries outside the household of the working beneficiary until after the close of the year when we determine deductions. After receiving the annual report, or making the enforcement selection and determining the earnings and deductions, make any necessary adjustments for the worker and any increase due the auxiliaries in the separate household.
B. Examples with same or separate households
EXAMPLE 1: Basic example same household
A widow and three children are entitled in January to original benefits of $159.90 based on a primary insurance amount (PIA) of $213.10. The family maximum is $396, and the adjusted rate for each beneficiary is $99. BIC C3 works for wages over the monthly exempt amount in all months of the year, requiring deductions of $555. Charge his excess earnings against his adjusted benefits for January - May and against $60 of his benefits for June.
EXAMPLE 2: Worker in Separate Household with Other Auxiliaries or Survivors
Using the facts in the basic example, if the worker (C3) is in the household with C2, and, E and C1 are in a separate household, compute benefits for January-June as follows:
Jan - May
C2 can receive the extra $33 per month immediately because C3 is in the same household. E and C1 will receive the extra $33 per month only when the deductions become permanent.
C2 can receive the extra $20 for June immediately because C3 is in the same household. E and C1 will receive the extra $20 for June only when the deductions become permanent.