Does Social Security affect or offset DIC? If so, how is it calculated? Any help appreciated. Thanks!
Income does not effect DIC payments. Income is not a factor in DIC claims. DIC is based off of service connected causes of death as primary or secondary causes of death. Or the vet held the 100% rating for 10years +.
I meant to say, will my wife receive full Social Security and full DIC benefits after I die?
If all criteria is meet for qualification to DIC her SS will not be effected and she will be eligible to both.
The widow is also eligible for SBP now and the DIC and SSA pay will not be affected.
I sure wish that were true. I understand that SBP is offset dollar for dollar for payment of DIC. DIC is a non taxable amount, while SBP is taxable. The amount withheld from a member's retirement pay for the protection afforded by SBP is not taxed, however. The current administration has now allowed a $50 per month
additional payment to those who have SBP reduced by the DIC offset and this amount will be increased by $10 per month each year until the insulting amount of $100 per month is added.
This cruel "widows tax" continues. See SBP under Benefits under the home page, left column.
One final point. When DIC is paid to the surviving spouse of a retiree who was enrolled in SBP, the percentages of the contributions corresponding to the portion of the SBP annuuity not payable, will be refunded to the beneficiary.
If I am incorrect in any of the above, please let me know with a link to any correction. Best regards.
MacThis message has been edited. Last edited by: CMsgtMac,
I found this link that explains SBP & DIC,
I'm wondering if the TOTAL of all SBP payments over the years will be refunded if DIC is higher than SBP. The above link seems to say so, or maybe I'm confused.
Any DIC paid to your spouse is subtracted from SBP payments; although, DIC payments to or for children do not affect SBP payments.
Refund of SBP Costs
A refund is paid to your surviving spouse for the costs deducted for that part of the SBP benefit not received due to DIC being paid. If the DIC payment offsets the entire SBP payment, all costs will be refunded. These refunds are taxed as income to the survivor since they were not taxed when deducted from retired pay.
The link you cited above is from 2005. The 2008 amount of DIC paid to a surviving spouse is, or will be, $1091. If a retired member's SBP is less than that amount, no SBP will be paid to the surviving spouse. I am uncertain if the $50 stipend I referred to in my preceeding post will be added.
If the SBP amount is less than DIC, the entire amount withheld from the SBP enrolled retiree will be refunded to the surviving spouse. It should be noted, however, the amount of any refund will be subject to Federal taxes, as well as some States' taxes.
Thanks for the info CMsgtMac
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