Post-Divorce Annulment Won’t Affect Ability to Collect on Ex-Spouse’s Social Security

Q I am in my mid-50s and was divorced recently after 30 years of marriage. For religious reasons, I am thinking of pursuing an annulment. However, I have been advised that if one is granted, my ability to receive spousal benefits on my ex-husband’s account could be jeopardized. Is this true?

--S.C.

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A The Social Security Administration says it follows the laws of the state in which a taxpayer resides in determining the marital status of recipients. Following this logic, you are considered divorced because your marriage has been dissolved under California law.

Whether you choose to have it annulled by religious authorities is a separate matter and will not affect your status as a divorced spouse.

Therefore, because you have more than met the requirement of being married for 10 years before the divorce, you are entitled to claim benefits as a divorced spouse when you meet the age requirement and have not remarried.

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Q I cannot for the life of me figure out why I am charged state sales tax on the redemption deposit that we pay on beverages. Can you help?

--J.D.

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A The state Board of Equalization says CRV (California Redemption Value) charges are subject to sales tax because they are considered a part of the price of the product. Because the product is taxable, so is this charge.

Why is the CRV part of the product’s price, regardless of how it’s listed on your sales receipt or on store shelves? Because the state says the CRV is not a deposit but a charge that consumers may or may not recover, depending on whether or not they recycle the products.

Remember, these containers are not “returnable,” as were the soda pop bottles of several decades ago. They are recyclable for a value that is set by operators of recycling centers. By contrast, the state says deposits charged for beer kegs, wooden pallets, gas cylinders and feed bags--just to name a few items--are not subject to sales tax because these items are truly returnable for reuse.

So why do stores list the CRV separately from the price of the goods? It probably has more to do with their internal bookkeeping, because they are responsible for paying state fees levied on the sale of beverages in recyclable containers. Retailers pass these charges on to consumers through the CRV fees.

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Q I was told that I could withdraw money early from my individual retirement account without incurring any penalties if I used the money to buy a home as my primary residence. Is this true?

--F.R.

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A Not yet, and maybe never. Who knows? Congress and several administrations have discussed this matter for years. At this point, the law has not been changed. You may not withdraw IRA funds early without penalty for a home purchase.

That said, you should know that Congress and the president are again talking about this issue, so it could happen--but I hope you’re not holding your breath.

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Q My father died before I was born 31 years ago. I understand that my mother could have collected some Social Security payments on my father’s account to help with my support, but she never did. Is there any recourse to collect on these benefits? It would make a nice nest egg for a mother who never remarried and put her only son through college.

--S.B.

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A As nice as your intentions are, there is nothing you can do. The Social Security Administration says it is not its policy to seek out taxpayers who are eligible for benefits. Rather, it expects taxpayers to file claims for benefits they believe are due them. Furthermore, the agency has a limited retroactivity policy and will rarely, if ever, pay benefits more than 12 months in arrears.

The lesson here is for taxpayers to file claims with Social Security as soon as they think they are eligible for any sort of benefits: old age, disability or death. If the claim cannot be honored, you will be told, at which point you can continue to fight if you believe you are entitled to those benefits.

If the agency’s original determination is in error, and you are entitled to benefits, you will be paid retroactively to the date of your claim. But you must have filed a claim. For claim information, call (800) 772-1213.

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Carla Lazzareschi will respond in this column to financial questions of general interest. Write to Money Talk, Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, CA 90053, or e-mail [email protected]