Check with real estate agent to apply for grant for house

By Eleanor Jones

Inside Adviser

Q: Mr. M, of Dalton, Ga., writes: “This may not pertain to Social Security or disability. I have been told there is money for grants for people to buy houses, and I cannot find out how to apply. If you have advice that you can give, please write and let me know.”

A: I would think a real estate agency would be able to give you information on this.

Q: Mrs. S of Chattanooga writes: “I worked as a teacher for 24 years.  When I was hired I had a choice to have Social Security taken out or not.  After researching the pros and cons my husband and I decided to not have Social Security taken out because I would be able to get half of his Social Security retirement benefit at my retirement.  I retired 13 years ago and was told by the Social Security office the law had changed during my teaching career and I would not be able to get half of his Social Security benefit.  I get Medicare only through his Social Security.  I get only a small teacher retirement based on my 24 years teaching.  If he passes away before I, do I continue to receive Medicare based on his, and will I get half of his Social Security at that time?”

A: If you worked in a job that was not covered under Social Security, e.g., some federal, state or local government employment, the pension you get based on that work may reduce your Social Security benefits. Your benefit can be reduced under one of two provisions. The first, called “government pension offset,” applies only if you receive a government pension and are eligible for Social Security benefits as a spouse or widow(er). Under this provision, your Social Security benefit may be reduced by two-thirds of the amount of your government pension. There are several exceptions to this rule. For more information, see our GPO page or the GPO calculator.

The other provision, called the “windfall elimination provision,” affects how your Social Security retirement or disability benefits are figured if you also receive a pension from work not covered by Social Security. The formula used to figure your benefit amount is modified, giving you a lower Social Security benefit.

For more information, see our

* Web site for federal, state and l ocal government employees http://www.socialsecurity.gov/gpo-wep/,

* Government pension offset calculator http://www.socialsecurity.gov/retire2/gpo-calc.htm, and

* Government pension offset http://www.socialse curity.gov/pubs/10007.html fact sheet.

Even if you do not receive cash benefits based on your spouse’s work, you still can get Medicare at age 65 on your spouse’s record if you are not eligible for it on your own record. In the event of your husband’s death, contact your local Social Security office to file for the lump sum death payment and to have your record reviewed to see if you would be entitled to anything on his record as a widow.

Q: Mr. M, of Chattanooga, writes: “My wife and I are both retired. She draws a monthly check from both her retirement and SS. I draw a monthly check from SS. I have a lump sum retirement account (one IRA and one non-IRA) with a financial firm. Our monthly income from SS and my wife’s retirement is $2,900. I do not get a regular monthly amount from my retirement account but instead I periodically draw distributions if extra funds are required. The last few years I have been required to take a minimum distribution due to my age. Recently we have had some occasions where we were required to give our annual income. Since distributions from my retirement account vary from year to year I am not sure how to calculate our annual income. Please explain how we calculate our annual income.”

A: I think your inquiry is one that should be referred to IRS. For more information, call the Internal Revenue Service’s toll-free telephone number, 1-800-829-3676, to ask for Publication 554, Tax Information for Older Americans, and Publication 915, Social Security Benefits and Equivalent Railroad Retirement Benefits.

Income from your IRA and other retirement income will not affect your Social Security benefits. Social Security counts only the wages you earn from a job or your net profit if you’re self-employed. Non-work income such as pensions, annuities, investment income, interest, capital gains and other government benefits are not counted and will not affect your Social Security benefits. For more information, we suggest that you read the following publications which are available online: Retirement Benefits (Publication No. 05-10035) and How Work Affects Your Benefits (Publication No. 05-10069).

Get answers to your Social Security questions each Thursday from Social Security District Manager Eleanor Jones. Submit questions to her attention by writing to Business Editor John Vass Jr., Chattanooga Times Free Press, P.O. Box 1447, Chattanooga, TN 37401-1447, or by e-mailing him at jvass@timesfreepress.com.