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What happens to Social Security benefits after a guardian dies?

Robert Powell, Special for USA TODAY
Social Security's Representative Payment Program provides financial management for the Social Security and Supplemental Security Income payments of beneficiaries who are incapable.

Q: I am 75 years old and guardian of a 7-year-old girl, whose father is disabled. Social Security now pays her $777 per month. What should I do to make sure that the girl will continue to receive her Social Security benefits after I die? — Dan Collins, Durbin, W.Va.

A: Social Security's Representative Payment Program provides financial management for the Social Security and Supplemental Security Income (SSI) payments of beneficiaries who are incapable — in this case, a child — of managing their Social Security or SSI payments, says William “BJ” Jarrett, a public affairs specialist with the Social Security Administration (SSA) in Baltimore.

Generally, the SSA will look for family or friends to serve as representative payees. When friends or family are not able to serve as payees, Social Security looks for qualified organizations to be representative payees.

Visit When People Need Help Managing Their Money on the SSA’s website (www.ssa.gov/payee/).

Q: When having to pay back $1 for every $2 due to earnings prior to full retirement age, is a pension included in what they consider earnings? — Bonnie Beckley, Glendale, Ariz.

A: If you’re under full retirement age for the entire year, the Social Security Administration will deduct $1 from your benefit payments for every $2 you earn above the annual limit,  Jarrett says. For 2015, that limit is $15,720.

If you work for someone else, only your wages count toward Social Security’s earnings limits, Jarrett says. If you’re self-employed, the SSA counts only your net earnings from self-employment.

For the earnings limits, the SSA doesn’t count income such as other government benefits, investment earnings, interest, pensions, annuities, and capital gains,  Jarrett says. The SSA does count an employee’s contribution to a pension or retirement plan if the contribution amount is included in the employee’s gross wages.

FYI: When you reach full retirement age, your Social Security benefit will be recalculated, and you'll be given credit for all those "lost" Social Security benefits. In other words, you will get all those dollars back, says John Olsen, president of Olsen Financial Group in St. Louis. For more, read Retirement Planner: How We Deduct Earnings From Benefits.

Q: I understand that Social Security reviews your highest 35 years of earnings in determining your benefit at retirement. But what does Social Security consider “earnings” for the purpose of determining these benefits? I have most of my tax returns from the past 35 years and have tried to compare my tax returns with the earnings that Social Security has credited me for each year and cannot reconcile any of the numbers. How do I reconcile my earnings history correctly when comparing tax returns against the Social Security statements? — Rick Eggert, Vernon Hills, Ill.

A: Your Social Security earnings are different from your taxable income.  First, the Social Security Administration  counts only earned income from employment (wages) or self-employment (net earnings).  Second, there could be discrepancies if income is counted when earned vs. when paid.  By the way, if the Social Security record is just plain wrong, it can be corrected.  Read https://faq.ssa.gov/link/portal/34011/34019/Article/3853/How-do-I-correct-my-earnings-record.

Robert Powell is editor of Retirement Weekly, contributes regularly to USA TODAY, The Wall Street Journal and MarketWatch. Got questions about money? Email rpowell@allthingsretirement.com.

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