Social Security Income Limits

Once you reach your social security full retirement age, your "earned income" no longer impacts how much benefit you receive. Unearned income has never been used to determine how much you receive. That said, if your other income including tax-exempt interest/dividends plus 1/2 of your SSA benefits exceeds $32K when filing MFJ, your SSA benefits will start to be taxed.

See page 7 of IRS Pub 915, where you can calculate how much of any benefit would be taxed using the data from your 1040 tax return.

The benefit itself will not be reduced; however it may be taxed when you file your Federal income tax return.

See

And you will need to consider having withholding taken on your benefits:

No. Once you are at "full retirement age", which I believe is 66 for you, your income has no effect on your Social Security benefits. However, that income may cause part or all of your benefits to be taxable. See the "Social Security Benefits Worksheet" in the instructions to form 1040.

Think long and hard, and perhaps consult a financial planner, before you start to take Social Security benefits earlier than age 70. For every month past your Full Retirement Age that you delay, your monthly benefit (when you do start to take it) will be increased by

2/3 of a percent. That means that if you delay to age 70 -- the longest you can delay, and the longest that the deferral credit mounts up -- you will get 32% more per month, for life, than you would if you start taking benefits at age 66.

If you expect to live past about age 82 -- and for our age group, the odds are good -- then you'll get more money over your lifetime by waiting. But there are wrinkles for married couples, because of spousal benefits. Your wife may be able to take spousal benefits even though you are waiting till age 70 for your own benefits. Or vice versa. (Being single, I haven't paid close attention to that part of the regs, but our financial planner should know them by heart.)

BTW, you can get Medicare, if you want it, without receiving a Social Security benefit.

Not any more. A 2016 change, I believe.

-- Arthur L. Rubin, AFSP Brea, CA

Stan Brown wrote in news: snipped-for-privacy@news.individual.net:

Keep in mind that if you defer starting Social Security after becoming eligible for Medicare Part B (for most people age 65) and you elect to take Medicare Part B, your Part B fee may be higher than it would be if you are also receiving Social Security. This is due to rules that stipulate that annual increases in Part B fees to participant can't exceed the COLA increase in Social Security. In years when that happens (i.e., low inflation results in little or no COLA) the difference in what Part B fee should be vs actual is instead pushed onto those who aren't receiving Social Security (also those who first become Part B eligible in that year).

If you don't start Part B when eligible, and want it later you have to pay a penalty for periods you did not participate. And if you have "too much" income in the prior year, you get to pay a surcharge in the current year.

scott s. ..

Two comments:

1. Not everyone who defers Part B when they become eligible at age 65 is subject to a late enrollment penalty. E.g., someone still actively employed or who has a spouse still actively employed and is covered by an EGHP (employer group health plan) can defer without penalty.

1. IRMAA (Income-Related Monthly Adjustment Amount) is based on your income from 2 years back, not the prior year. 2018 IRMAA is based on the 2016 tax return.