Restricted Application for Social Security: What You Need to Know

Filing for Social Security benefits can be complex, especially when trying to maximize monthly payments. The restricted application strategy once allowed individuals to claim spousal benefits while delaying their own retirement benefits, but rule changes have significantly limited its availability.

Core Filing Criteria

Eligibility depends on birth year. The Bipartisan Budget Act of 2015 eliminated this strategy for most, but those born on or before January 1, 1954, can still file a restricted application, collecting spousal benefits while deferring their own. This rule change aimed to prevent individuals from receiving spousal benefits while also maximizing delayed retirement credits.

Age is another factor. A restricted application can only be filed at full retirement age (FRA), which is 66 for those born in 1953 or earlier. Filing before FRA results in an automatic claim for all available benefits, eliminating the option to restrict the application. Delaying personal benefits beyond FRA increases payments by 8% per year until age 70.

Social Security’s deeming rules require most applicants to claim all benefits when filing, but an exception exists for those meeting the birthdate requirement. Eligible individuals can choose to receive only spousal benefits while their own grow. This strategy benefits married couples where one spouse has significantly higher lifetime earnings, allowing the higher earner to maximize their eventual payout.

Spousal Claim Requirements

For approval, the spouse whose record is being used must already be receiving Social Security retirement or disability benefits. If the higher-earning spouse delays their claim to accumulate delayed retirement credits, the lower-earning spouse cannot file a restricted application until the primary earner has started collecting.

Spousal benefits depend on the applicant’s FRA. If filed at FRA, the maximum benefit is 50% of the primary worker’s full benefit. Filing earlier results in a permanent reduction. Unlike personal retirement benefits, spousal benefits do not increase beyond FRA, so delaying past that point offers no advantage.

Marriage duration also matters. Couples must have been legally married for at least one continuous year before filing. Divorced individuals can claim spousal benefits if the marriage lasted at least 10 years and they are currently unmarried. If the ex-spouse has yet to file, the applicant can still claim spousal benefits if both are at least 62 and the divorce occurred at least two years prior.

Financial Documentation

Accurate records are required. Proof of age, typically a birth certificate or U.S. passport, verifies eligibility. Name discrepancies due to marriage or divorce may require additional documents, such as a marriage certificate or court order.

Employment history is crucial. Since benefits are based on lifetime earnings, applicants should review their Social Security Statement through their mySocialSecurity account to confirm accuracy. Errors in reported wages or self-employment income should be corrected before filing, as incorrect data affects benefit calculations. The SSA allows corrections, but supporting documents such as W-2 forms, tax returns, or pay stubs may be needed.

Banking details must be accurate for direct deposit, as the SSA no longer issues paper checks. If benefits are deposited into a joint account, both account holders should be aware of the arrangement to prevent complications.

Income Threshold Constraints

Earnings limits can reduce benefits for those working while receiving payments. The Retirement Earnings Test (RET) applies to individuals claiming benefits before FRA. In 2024, beneficiaries under FRA can earn up to $22,320 before benefits are reduced, with $1 withheld for every $2 earned above this limit. In the year FRA is reached, the threshold increases to $59,520, with $1 withheld for every $3 earned above that amount, but only for months before reaching FRA. Once FRA is reached, earnings no longer impact benefits, and withheld amounts are recalculated into future payments.

Taxes are another factor. If combined income—adjusted gross income (AGI) plus nontaxable interest and half of Social Security benefits—exceeds $25,000 for single filers or $32,000 for married couples filing jointly, up to 50% of benefits may be taxable. For incomes above $34,000 (individual) or $44,000 (joint), up to 85% of benefits could be subject to federal income tax. Some states also tax Social Security benefits, with policies varying by jurisdiction.

Denial or Revocation Factors

Even if an applicant meets eligibility criteria, certain factors can lead to denial or revocation of benefits.

Failure to Meet Eligibility Requirements

One common reason for denial is failing to meet the birthdate requirement. Only those born on or before January 1, 1954, qualify. Anyone born after that date is ineligible. Filing before FRA also results in an automatic claim for all benefits, eliminating the ability to restrict the application.

Another issue is when the primary spouse has not yet filed for benefits. Spousal benefits can only be claimed if the other spouse is already receiving Social Security. If the primary earner delays their claim, the application will be denied.

Inaccurate or Incomplete Documentation

Errors in financial or personal documentation can also lead to denial. If Social Security records do not match the applicant’s legal name due to marriage, divorce, or other changes, the SSA may flag the application for review, delaying approval. Providing outdated or incorrect financial records, such as earnings statements that do not reflect accurate income history, can also cause problems.

Banking details must be correct to ensure benefit payments are processed without issue. Incorrect account information can lead to delays or misrouted deposits. The SSA may revoke benefits if payments are repeatedly returned due to account closure or other banking issues. Ensuring all documentation is accurate and up to date helps avoid processing delays.