I have been watching your videos for the past year or two. I just entered early retirement and I just wanted you to know that I so appreciate the information that you have given, it has been very helpful! God bless you :-)
Jeff wonderful video and thank you for your time and effort enlightening as many people as you can, so they can make informed decisions benefiting their particular situation. I retired and will enjoy the "4th" quarter of my life. Cast ALL your anxiety on me.1 Peter5:7 So that being said we all "blaze a trail" and hopefully after our journey of life. We will all meet up again in heaven .
I am classified by the U.S. Department of State as a "National" which is also identified as a Nonresident Alien by the IRS. As such, I am currently working full-time for a private company, and not the federal government. In the capacity of a "National" and a "Nonresident Alien, per the IRS I am not required to pay federal income tax. Subsequently my employer does not withhold for federal income tax. Question: How does this affect my social security benefits if I continue to work full time and collect social security at 62? Since I'm not taxed as a Nonresident Alien, I assumed I could work and generate as much income and not be penalized if I go above the income limits established by the SSA? I am fully vested in SS and American born. I have a U.S. passport and I'm also retired military.
The biggest things I hate about our local and national government. Once you hit 70 and collect full retirement no matter if you have other money or not you should not have to pay any more taxes to anyone ever again. That includes local tax federal tax and property and school tax. Im 76 and am sick of more and more taxes year after year. At 76 I still fork out $4000 a year for a house and property I have lived on for 45 years. I watch everyone of video's and appreciate all that you have advised us on. We pay and our employer pays for our SS and the government has no right to even bring the subject up about the money being there. The people of our great country especially older folks are fed up and tired of hearing anything about funding problems with funding SS. Sorry I just heard more on the news about SS and I go Nuts
Property taxes become the default funding source whenever a state legislature does not allocate revenue to specific local government services, costs that may be mandated at the federal or state level. Almost no local government has managed to control property taxes for persons on limited fixed incomes, who are taxed on unrealized gains, even as inflation may be decreasing the value of their income and savings. Here in Texas there is an age 65 tax freeze on the public school portion of property taxes - about 2/3 of property taxes. There is also a disabled veteran and a deferred tax exemption. The deferred tax also applies to an age 65 homeowner who elects to not pay a portion of their property taxes - interest accrue on the unpaid balance of property taxes, but the local government will not foreclose on the property until death of the owner or sale of the property. The deferred exemption has been rarely used except for derelict properties with little value, but it has become more difficult to downsize because unless the current home is well maintained, another smaller property likely costs more than the current property - which is not actually worth what the local government has assessed it at. The local government should be required to use the value from a professional appraisal instead of the derived assessment that public employees calculate. I am working with an estate property that the county has assessed at twice of it's current market value - this scenario is common.
Just tell the police and fire department you won't need them after age 70 and not to come to your home when you call; I am sure they will not make you pay tax anymore.
Correct, it’s called double taxation. It’s common throughout the tax codes in our country. Many things are subject to triple taxation. Simply, another sneaky type fraud perpetrated by our politicians from both political parties !!!
1999 I was 62 and working. Started drawing SS. There was a catch up amount one could put into your 401K and I did that. The money put into the 401K did not show as income. Laws may have changed so your mileage may vary.
Also, if you’re self-employed, we consider how much work you do in your business to determine whether you’re retired. One way is by looking at the amount of time that you spend working. In general, if you work more than 45 hours a month in self- employment, you’re not retired; if you work less than 15 hours a month, you’re retired. If you work between 15 and 45 hours a month, you won’t be considered retired if it’s in a job that requires a lot of skill, or you’re managing a sizable business.
If you collect at fra and still keep working. Does the monthly ssa payment still go up every year intil 70 if the bottom 35 years are replaced each year ? After all, you are still paying in from working. If so, how much does it go up?
How about the government pay back what they've taken out with interest also when you retire shouldn't be no penalties maybe you just want an easier job not so much back-breaking and by working you're paying into social security when they take it out of your check that's so stupid penalties until you reach full retirement but after that you can work all you want and make all you want double taxed triple taxed
You mentioned having a link for info on living off your 401k to extend your SS age, I could not tell which link that was can you clarify. Love your videos. Thanks -- Jeff
Thx so much for your videos and advice Jeff. I am learning more every time. I have 3 friends who lost their husbands in the past 2 years. Two of them were not been retired … 58 and 62 years old. Very sad. I don’t know many who can live on SS alone ( and they don’t have pensions). I am looking into dual citizenship so that I can retire at 62 and afford to live in Europe (because I am not married and can’t afford to live in the USA). I would love to see any advice you have on that. I am watching international tax accountants RU-vid channels as well. 👍 Thx again and happy new year! 🎉👏
Hi Geoff, My question is, I thought retirees before FRA, who had a part-time job and earned more than their maximum allowed extra income, the SS penalty money was clawed back but returned to the person's SS "bank" which would increase SS benefit payments later; is this wrong? Thank you.
@@dougb8207 fyi First report to SSA the expected excess earnings to allow a quicker withholding (claw back) otherwise it can get brutal. second the FRA adjustment (bank) is paid back with an increase to the monthly check in a fashion which takes 12 years (~144 months) to get it back
@@whatsup3270 thanks for the information. 12 years doesn't seem unreasonable, to me. I'm surprised this isn't mentioned often during discussions such as these. It's important.
A while back, my wife would only work so many hours, because she thought otherwise she would just lose the extra earnings. I'm hearing that isn't the case; it's just held back and slowly paid out later with increased SS payments. Good to know, imo.
I've learned with full retirement, yes you can work as much as you want, but they will tax you if you work full-time, they will tax you 80 or 85 percent, so in reality, yes you can work full-time after full retirement but you are penalized for, so really you can't work as much as you want after full retirement, because your penalized for it
Another highly informative video. I enjoy your videos and your content makes me think and learn - thank you. You ask, from time to time, for viewers to submit ideas for future videos. Have you done a video about retirement impact on couples where one spouse retires a few years before the other? When I retired, my wife still had several years before she reached age 62. I struggled with retirement while my wife continued to work until we adjusted our finances to the point she could retire early before her eligibility for SS. We are so glad we made this choice. I doubt we are unique. Maybe you could make a video with finance suggestions/recommendations to help your partner retire early. Thank you Jeff.
I never was a money guy. I am semi retired and between my pension an the part time money, I make about $90-95k a year. I will turn 70 next Spring and never gave any thought to SS until I saw one of your videos. I always figured it would go broke so I never counted on it. It would appear that I need to watch some more of your videos. 🫡
If you retire at 62, what about health insurance? Do people just pay a full monthly premium? I figure 1000 to 1500 (hopefully that’s the most-maybe not!) per month for 2 people, so 12,000 to 18,000 per year for 3 years until Medicare kicks in? That’s minimum $36,000 taken from the nest egg. Am I wrong about this? I hope someone knows this answer!
You may be able to qualify for Affordable Health Act credits, depending upon income. I believe many go that route, but I'm still on my employer's sponsored retiree medical plan until I hit 65.
I turned 65 in January 2023 and my request to receive SS was approved. However, based on what I said my estimated income for 2023 would be, the SSA subsequently told me I would receive no benefits. It turns out my estimated earnings for 2023 was wrong. There appears to be no way to tell this to the SSA. They don’t answer their phones. Anybody have advice? Thanks
How does 401k impact this? If I make $40k but put $30k into 401k is my income $40 or $10 for SS limit. How about the zero income years. If I start collecting SS but still work will I get more as the zero income years drop off? Thanks
Nice video, thanks! I have one question however, what if i take SS early at 63 years of age and i am earning roughly 36K a year in my own LLC as an i-9 employee, but my write offs and business expenses negate my income totally. What happens to my SS benefits tax implications. Thanks
If retiring at 62 and earning $30, 000 per year, is the 50% penalty above $22,320 (2024) lost forever or is it deferred and paid back to me at FRA? Thank you
I reach full retirement age in January 2024. Just lost $55k a year job. Tempted to take SS this July at 66 and work part time. Will my former job income in early 2023 factor into penalty on my benefits this year that would start in July? What would that look like?
so is this a viable/advantageous strategy (maybe a lot of people do this?) - but can I at 67 FRA take my SS allowed then, keep working full time or whatever hours I need to keep living for 3 years until 70 and invest all of my SS or most- so that it grows? would that grow more than the bigger SS payout funds at 70 and not work (or maybe a bit if I have to). So based on the 3 year interim you get to invest your SS but also you are stuck in that FRA payment forever - does that give you any advantage in total lifetime or even months funds when 70? Hope that makes sense!
Hello Jeff. I am 70 and plan on working for the next few years. Will the social security I start collecting next month be considered taxable income? I am a single income household.
At FRA. Collecting social Security while still working. Once I receive a pension, SS will reduce my income due to WEP. So I figured I may as well collect while working to receive full benefits before I receive a pension.
So if my wife is collecting a spousal benefit from my SSA and I don’t go over my earning limit is there an earning limit for her as a spouse just collecting a. Spousal benefit?
Also, if you’re self-employed, we consider how much work you do in your business to determine whether you’re retired. One way is by looking at the amount of time that you spend working. In general, if you work more than 45 hours a month in self- employment, you’re not retired; if you work less than 15 hours a month, you’re retired. If you work between 15 and 45 hours a month, you won’t be considered retired if it’s in a job that requires a lot of skill, or you’re managing a sizable business.
If I understand correctly you can collect Social Security even if you don't have the work history if you have a deceased former spouse who qualified and you are old enough to collect SS and you are not currently married. Am I correct about this?
So how is the salary penalty deducted from SSBs? I turn 62 in August and make approximately $10k more than the $21,024. So about $5k will be deducted- but how?
The $5k demand will be sent to you in a surprise "Overpayment Letter"...which Social Security Administration will demand payment from you in 30 day's. In the meantime SSA will stop your monthly check...until you pay up. If you go into a ssa office(bring your lunch/dinner) they will offer you a payment plan ie. take away $153(for 3+ years or until $5k is fully paid back) out of your monthly check. You will receive a smaller check (which also deducts medicare premium monthly)! I don't know why he keep's say 100%.
Loved the Kakapo info! Had a question about what counts as income, My husband and had planned on taking SSI at full retirement age. Unfortunately he was laid off at 61 so we are looking at him starting SSI at 63. We are renting our home while I take pursue a job in a different city. Will his 401k withdrawals or the rental income impact SSI? Or since it's not employment income..is it OK? Maybe just a bit of clarification on that point. You are a terrific resource. Thank you for these videos... so approachable.
Also, if you’re self-employed, we consider how much work you do in your business to determine whether you’re retired. One way is by looking at the amount of time that you spend working. In general, if you work more than 45 hours a month in self- employment, you’re not retired; if you work less than 15 hours a month, you’re retired. If you work between 15 and 45 hours a month, you won’t be considered retired if it’s in a job that requires a lot of skill, or you’re managing a sizable business.
How would SS or the IRS for that matter know how much time you work when self-employed? I don't punch a clock and I certainly do not report that info to anyone. For clarification income for my self employment is reported via 1099s from clients. I am not an 'hourly contract employee'. Many or most with their own business won't be. So there isn't any reporting of hours I am aware of. If I work 1000 hours on something I charge only $10 for and $10 is the 1099 figure it shouldn't matter to anyone about the time.
I'm 63 years old . I sold RENTAL property for $340,000 about 11 months ago while collecting Social Security (I only collect $1184 per month) I did taxes in 2022 = I owed & PAID 20,000 in taxes due to that PROPERTY SALE BUT I RECEIVED LETTER STATING my NEXT YEAR 2024 monthly Social Security check is REDUCED to pay 384.00 ( IRMAA payment ? ) IRS "DOUBLE DIPPING" I ALREADY PAID CAPITAL GAINS FOR HOME SALE DIDN'T I ? CAN ANYONE EXPLAIN ???? $1184 - 384 = 800. = :( :(
The IRMAA payment is for Medicare - your income is higher than the threshold so you have a Medicare surcharge (IRMAA) and it is deducted from your monthly SS check.
@@jirimondo IS selling a rental house "income" OR capital gains ??? I already PAID $20,000 in taxes to IRS IS THIS NOT "DOUBLE DIPPING" my money . I didn't work to make income . Now Hypothetically speaking : IF I won a BIG jackpot in Vegas THAT WOULD that NOT HAVE MADE ME ELIGIBLE FOR A More /HIGHER SOCIAL SECURITY BENEFIT AMOUNT when I FIRST applied at 62 would it ? Again I'm being Hit twice Am I Not ??
Good morning! This is the first video I have watched of yours, but I did subscribe. A quick question or 2 - Is the 21,240 yearly earning gross or net? And, if I retire early will the yearly earning go up each year until I reach 67?
Also speaking of early filing, my wife turned 65 in July 2023. And started drawing SS then. She earned apparently 20K Jan-Jun and then earned more than we thought she would July - Dec. Another 10K. So I”m trying to clarify in my head is if that 30k is totally under the 21K rule or is the 20 K she earned prior to July not included and thus the extra 10K not subject to penalty? It’s very confusing.
What does 'gross' mean for self employed small business? After expenses, after fees, total before taxes? Very confusing to me. Do they just go on Schedule C then?
Surprise...... You owe us ALL of your benefits for the past five years... Oops.... Also, if you’re self-employed, we consider how much work you do in your business to determine whether you’re retired. One way is by looking at the amount of time that you spend working. In general, if you work more than 45 hours a month in self- employment, you’re not retired; if you work less than 15 hours a month, you’re retired. If you work between 15 and 45 hours a month, you won’t be considered retired if it’s in a job that requires a lot of skill, or you’re managing a sizable business.
When I reach my FRA I plan on drawing my SScheck and keep working for about 3 or 4 more years, I have 401k at my job. My plan is to take a lump sum payment about a month before I'm ready to stop working and live off of the SS check tax free, will this plan work?
I have one question to ask.... suppose I paid 40 quarters of work history but m on working permit Visa or pending asylum seeker.. am I eligeable for SS at age of 62?
Still about six years away... My wife and I will stop working at 55/57 (house paid off, little debt), both of us will have a comfortable pension that we will be fine on. We both plan to take SS early (62 or 63) just to be a little extra comfortable and have a larger travel budget. We want to have plenty of travel in our healthy retirement years. How will not paying into SS those handful of years affect our early draw from SS? I also have a Roth IRA I put money into that I don't want to take from until it's retirement home time... in our 70's probably. Can I max contribute and send my pension money and SS money to my Roth IRA during my 60's? Thanks for the great videos!
Run your SS calculator at the website, and see how it looks? Generally the SS change isn't much; it's more of a change to less IRA money socked away, and less bills paid off ... that kind of thing. Good question about the Roth; I don't think you can further fund it after done working, but I'm really not sure. You might want to call your plan administrator and ask them.
@Healthy MBS. You really should look into other options. Taking SS early combined with your pension income will most like have your SS taxed also. Up to 85% of the income. The government and employers know this. So how they help in that you can front load your pension where you get paid more from 55-67 or 69 and then it stops. You can then collect SS at FRA or even 70. Pension income is taxable though so if you front load both then you may be in higher tax bracket. Be careful. Could you perhaps front load one of the pensions. I’m assuming your medical is covered after you retire at 55/57? Is it only up to 65 when Medicare kicks in? Be careful with having too much income. You didn’t mention anything about an IRA or 401k/403b. Deferred taxes. You only mentioned Roth. Also with Roth contributions you have to have “earned” income. The only way around this is to perform Roth conversions but you would need to have deferred tax monies.
If I understand correctly, the calendar year i reach my FRA, I can work and still collect my full SS. I reach FRA at 66-6, April. If I start collecting in January I can collect my full as long as I do not make over 56k?
For Federal Taxes? At the federal level, it goes by total income (including pension) to determine the total first, then you take a second look at SS to see how much of it is taxed, based on the total income. That's my understanding. It's a bit complicated.
Born in 51, I retired early at 62. Began working again at FRA of 65, and am PAYING into SS at age 72 and will continue paying into SS until at lease age 76. Is there any way to recover/redeem the penalty I incurred by retiring early at 62? Will my current SS payments ever result in collecting full benefit? Thanks
There is NO delay credit after age 70. Only if you are replacing a lower wage index year, (of the highest 35) would your benefit increase. However, if you went back to work and did not get Social Security for any months from 65 on, you would get credit until age 70. I assume you are taking a check since age 70?
generally no, that scenario usually results in a 25% reduced drawing rate. which paid for the checks between ages 62 through 66. Though other factors can change your check but the actual 25% will remain. The most common reversal there would be switching to a higher paying surviving spouse benefit if that is available.
Since you started working again at FRA, there is no penalty for earning too much. If one of your earning years, after retirement, is large enough to replace one of the highest 35 years, your benefit amount could be recalculated to a new higher amount.
I spoke to a woman at SS and she never mentioned a dollar amount. She said I cannot work more than 45 hours a month. What if someone is making $8 an hour or $80 an hour, how can it be 45 hours?
what if i earn 21240 in the first 3 months of the year and dont earn anything the rest of the year, will the deduct money for the 3 months I made over 1770?
Hello Geoff😊 I am 64 considering starting SS at my 65th birthday in July. I have have watched many of your videos -all very helpful. This subject you have covered multiple times and it applies: I will be self-employed as a supplemental income. Full retirement 'age' for me is in the transition period - I believe 66 years 10 months since I was born in 1958. I understand the first period i think: the year I retire I cannot make more than $1770 / month for July thru Dec. If I do all SS is lost for 2023. Further nothing counts from Jan-June. Now - how are these 'years' defined? is it calendar year Jan - Dec like most of us conceptualize years? This is important to know when the monthly test ends and the annual test starts I will state the last period next - at some point (at 66 years 10 months maybe?) I can earn any amount - SS doesn't care. The real confusion is that middle $56,520 / $4710 time frame. when does that apply? The year of my FRY only? if so, given its at 66 years - 10 months, what is the beginning and end point for that? I think it might help to have a time line graphic wit these (3) periods carefully shown. Leave it to the government to make such a simple concept so complicated. A follow on question if you have made it this far: Is there another video series on Medicare by someone like you have done for SS that you know about?
So in 2023 you will earn and draw against the $1,770 withholding standard, and in 2024 you will earn and draw against the $1,770 withholding standard, and in 2025 you will start out earning and drawing against the $4,710 standard until May when you will no longer be subject to withholding?
@@whatsup3270 While we wait for Geoff to possibly respond I will feed back what I think you mean: 1. The calendar year of retirement is 2023. This is prior to FRA and it will be that partial first year (which most will have at some point). Thus we have the monthly limit rule of $21240/12 or $1770 rather than the annual rule of $21240. Further if that $1770 is exceeded in any given month it is the active rule all SS for that years is lost. This combination of rules only happens once, that first partial year of retirement. 2. The second calendar year of retirement is 2024. That will be a full year but still all below FRA. Thus the applicable rule is the $21240 annual check not the $1770 monthly check and that annual limit can be exceeded with the proviso that $1 out of $2 over the limit is given back. 3. The third year, 2025, is tricky, since FRA is reached in May as you stated. So I am not sure if a given rule applies for the full year or rules change in May. Assuming only one rule applies per calendar year this is the FRA year and maybe that means the $56520 annual limit applies with only $1 out of $3 exceeded given back. 4. 2026 is the first full calendar year after the FRA year. At that point there are no further limits on income. This is how I think it works (in my case) but subject to verification. So (3) quick takeaways: The monthly limit rules only apply during a partial first year below or at FRA; the $56520 / $4710 rule only applies the calendar year one reaches FRA; when monthly limits are in effect no exceeding earnings at all is allowed or SS is lost entirely for that (partial) year. In videos prior to this one Geoff mentioned it was choice whether we wanted to take that first partial year with the annual limit or monthly limit. He didn't say that this time, monthly only, so that may be a change. Thanks for tying to help me understand what only the government can complicate.
@@stevemarquis7704 Sure, fyi you may want to try "Dr. Ed Weir, PhD, Former Social Security Manager" (or one of his associates) I just really think it is simpler its $1770/month from check one until 2025 then it is $4710/month until the FRA month, and then it is gone. However, there are volumes of odd or special rules and maybe one will apply here
@@whatsup3270 OK - listening very carefully around the 5:30 mark several times I think I have it. The example given is reaching FRA at 67 in the month of Sept. From Jan thru Aug of that year the middle limit rules apply ($56520 / $4710). Sep thru Dec of that same year (and all following years) there are no limits. If this is the case i would assume FRA calendar years will always be split between these two so I would assume a strict monthly limit of $4710 always applies not the annual limit.
Where is the link for the video that discuss "taking social vs. using retirement fund". There was no link at the end of the video, nor do I see it call out in the list of videos below???
I am a retiree and reached my FRA this past Nov 2022. I am receiving my SS payment but have been advised by my tax preparer that if I take on any additional work paying a salary, I will have my SS payment reduced. Why is that the case if I have already achieved my FRA? My preparer says I have to wait until I'm 70.
I was born Oct '58 (65). My FRA is 66 and 8 mo. I'm self employed. I'm working all of 2023 and don't want SS to begin until Jan 2024. I plan on scaling back in 2024 and will make less than $1,770 / mo. Here's my question: I would like my first SS check to arrive Jan 2024. I'm told it can take 3 months to receive my first check. So, I started filling out my application and it appears to want to use my 2023 income in the calculation. I stopped my filing because I couldn't tell if I could say when I would like my SS checks to start. Does anyone know if you can pick the date of your first check? Thanks
Something important to consider is does the earnings limit go up each year the same amount as COLA or is it based on a different formula? I cant seem to find that information from any youtubers.For example if your payment is $2000 per month and COLA is 3 percent your new payment would be $2060. So does that mean that the earnings limit would also go up by 3 percent? $21240 x 1.03= $21877?
I will make $25000 this year on W2 wages but lose about $4000 in my self employment due to write offs. Is Social Security going to count my income as $21,000????
I started taking my social security at 62 now 64 concerning the earnings limit not self employed knowing it's around $21,000 in a calender year $1,700 per month roughly what if I earn say $3,000 per month for 6 months $15,000 then zero rest of the year in other words I stay under the $21,000 but earn high amounts "$3,000 in the months I work do I loose any of my social security,,,is there a penalty for monthly or is it just total earned for year ,,,,not self employed but working for others a job
Question: What happens when one retires before FRA, works for one year, stops his SS payments for the year worked. Then stops working again, in my case they just resumed the normal amount plus COLA. Will there be a recalculation/recomputation when I reach my FRA. Thanks.
yes, Its unclear if they will allow a "suspension of payments" before FRA or force a withholding option. In either case at FRA the payment is recalculated to reset it to scheduled rates between FRA and age 79. BTW they will allow suspension at FRA up to age 70. So if someone filed at 62, went back to full time work at 65 through 68 with suspension from FRA (67). Then restarted benefits there would be 2 adjustments 1) the pre-FRA would be adjusted by reversing the early filing formula equal to withheld payments, and the second adjustment would be to add 8% to newly calculated PIA
I have my own business so what is the actual number that SS looks at? Is it gross income from the business or something other? Since I am a business owner and as I am aware, I not only pay social security on my income but the business share of it also. So if I made 40,000 gross and netted 20,000 what number do I use?
After SS takes one, two- or three-monthly checks to make up for excess income earned over the annual threshold (this will happen to me this year, for work income from 2022), when and in what manner do they return the funds at FRA?: One check or the amount spread over several months or years?
I am hearing it starts at full retirement age and is spread over 12 years. Don’t quote me on that. I am not 100% sure. Its never made clear when it comes up in my experience. Terry
So to clarify. I retire at 62, claim pension of 37k. I claim SS at 70%, approximately 17k. 37k pension minus 21k SS cut off =16k overage/2=8k minus 17k SS payment. Means I only earn 9k per year SS? Is that correct? Plus taxes?! Ouch.
Does not work that way You take 50% of your $17K SS that $8,500 then is added to your $37K pension Then you use the SS formula Between $25-$32K is taxed at 50% difference is $7,000 or $3,500 then you take your $45,500 subtract that from $32,000 that $13,500 is taxed at 85% or roughly $11,500 add the $3,500 for $15,000 then add your $37,000 pension $52.000 then you take your standard federal dedication
My husband passed away 8 years ago at age 58. I have a good job and planned to work until my full retirement ago of 67, I am 55 now. My ss is higher than my spouse’s. However, I am considering taking his ss at 62 and holding off my social security payments until 70. Can I still work and collect his social security at 62? Will I have to pay $1 for every $2 that I earn over the minimum yearly earnings? What is the best financial option for me when taking advantage of the my husband’s ss as a death benefit?
This is a good question. My understanding is, if you collect his ss benefit while still working you are subject to the ss earnings limit. My humble suggestion is to work until you want to retire, takeing other income as need from 401k or IRAs (after turning 59.5). Then take your largest ss payment(and mix of 401k or IRAs) for needed income after retirement. .
OK, I turned 70 in December of 2022. I filed for SS in march of 2023. I am still confused on receiving SS and continuing to work as it relates to earnings potential and earnings limits. On one hand I hear that because I waited until 70 I'm not bound to any earnings limits. Then on the other hand I hear that if I make beyond a specific amount I AM responsible to pay taxes. Is it no taxes at all at 70, or no taxes on SS but I do pay taxes on the additional earnings as I continue working?? I would really like someone to provide a straight and clear cut answer. I don't need info on collecting early or comparisons between filing early vs at 70 because I waited to my FRA of 70. Let's just focus on those age 70 not 62-67 please. Thanks
Let me first say you should have filed Sept 2022 You left money on the table Yes you will probably pay tax on 85% of your SS if your working full time and making $40K or more Lastly your FRA was 66 not 70
Three different topics: The earnings limit only applies to working while collecting a benefit check before your FRA. Age 70 is well beyond FRA for everyone. The possible income tax on SS benefits doesn't have any age tied to it. Everyone could be subject to it, even those at age 100. The monthly benefit amount is calculated based on when you start collecting. Waiting past age 70 doesn't result in any additional benefit amount. Starting at age 71 doesn't get you any larger check than starting at age 70.
I am retired. So I am no longer working for my wages. There are a few other streams of passive income but no actual job . This money will not put me over the 22K limit of earned wages, but if I am filing jointly because my wife is still working. We also file our tax returns jointly which puts us well above 22,000. Can I still take Social Security early under this scenario without getting penalized by Social Security .
generally the FICA taxes you pay will in those years will determine your social security withholdings. Warning it would be a good idea to calculate your tax losses on the social security before collecting.
The earnings limit is for the individual, not jointly. Passive income doesn't count for the earnings test. If FICA taxes aren't withheld or paid on it, it isn't counted for the earnings test.
It depends. 1- If a person earns an income that has FICA withheld AND he/she works the minimum # of quarters (currently, 40 quarters or 10 years), then he/she would probably qualify for Social Security benefits. 2-If a person earns an income that has FICA withheld, but does NOT work a minimum of 40 quarters (or 10 years), then he/she does NOT qualify for ANY Social Security benefits. 3-If a person has not had any FICA withheld, BUT is married to a someone who HAS qualified for Social Security benefits, then that person may qualify for spousal benefits (usually 1/2 of the retiree’s benefit). 4-Widow/widower’s benefits are usually equal to the 100% of the retiree’s benefits, regardless of whether he/she ever had FICA withheld, (but the surviving spouse MUST apply for the increased benefits; it is not automatic). If I’m in error, I hope Mr. Schmidt will correct me.
Great videos! Thanks for all of the invaluable information! If I delayed SS until age 70, would the extra 24% I’d receive be computed on the amount that my FRA payment would have been at age 67, or would the 24% extra be computed on the amount I’d be entitled to receive at age 70 including the COLAs over those 3 years? Thanks so much.
They are really the same. PIA changes every year due to cola even if other factors don't change. So it will be 24% above the PIA as calculated in the year you turn 70. Or if you would like the FRA PIA + COLAs (+ any other changes) times 124% it is all the same because colas apply to everything
