I just purchased your software and ran some reports. In the reports, it appears that the maximum family benefits did not come out as I calculated (using the SSA formula for 2021). Specifically, my wife's PIA is $2,045. At 62, she is now applying for her retirement benefits. According to your report, I (now at 62) could apply for the child-in-care spousal benefits and my daughter, who has been disabled since birth (now at 24), could receive the disability benefits per my wife's earnings record. Your software shows that in such scenario, my wife will receive her reduced benefits of $17,562 a year (or $1,463.5 per month). Both my daughter and I will receive $10,089 a year (or $840.75 a month). The three benefits add up to $37,740 a year or $3,145 a month. But using the SSA formula, I calculated that my wife's maximum family benefits is $3,736. In other words, we should not have been capped by the maximum benefits. That is, both my daughter and I should be able to receive the 50% of my wife's PIA, or $1,027 per month. I may have missed something. Please advise. Thanks.

Hi. I answer questions from the general public that are submitted to this forum, but I don't have access to our customer's data or results. You may want to resubmit your question using an online contact form from the help menu so that your question can be answered by one of our experts with access to your data.

That said, based on your description it sounds like you may be misunderstanding Social Security's rules regarding distribution of the family maximum benefit (FMB). When determining the amount of the FMB available for auxiliary benefits (e.g. spouse, child), the worker's primary insurance amount (PIA) is first subtracted from the FMB (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300615756). That's true regardless of whether the worker files for early benefits or waits past full retirement age (FRA) to earn delayed retirement credits (DRC). A person's PIA is equal to their Social Security retirement benefit rate if they start drawing their benefits at full retirement age (FRA).

Therefore, in your case, even though your wife would receive a reduced benefit rate if she starts drawing benefits at 62, her full PIA would be subtracted from her FMB before calculating the amount potentially payable to you and your son. Thus, if your wife's FMB is $3736 and her PIA is $2045, only $1691 (i.e. $3736 - $2045) would be available to split between you and your son as eligible auxiliaries.

Best, Jerry