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We plan on my wife start collecting on her SS in November as she will turn 62 then. She is retired and so no additional income. My question is I plan on continuing to work until I am 65 (three more years).
will my income go against her SS earnings test? Thanks
No. SS is based on earnings for 35 years of a person's working life, not upon his/her current income, so you can make $1 million a year and still collect SS if you've paid into it. When you retire, your wife will qualify for 50% of your benefit. If that's more than she gets on her own SS, then she can switch to yours.
There are a number of threads in this forum about SS and SS spousal benefits. You should read through them because the decision to take spousal benefit or not is kind of complicated.
We plan on my wife start collecting on her SS in November as she will turn 62 then. She is retired and so no additional income. My question is I plan on continuing to work until I am 65 (three more years).
will my income go against her SS earnings test? Thanks
If you file a joint tax return I think it will. Might want to send an email to SS and ask the question. That way you have the answer in writing.
It sounds to me like you are referring to the lose a dollar for every two that happens after earning a certain amount. That ONLY applies if your wife is earning income, nothing to do with what you do or do not earn, so no it will not affect her SS payment.
It WILL however count or part of it anyway to what you both owe in IRS taxes.
No; but remember the first check wouldn't come in November if that's date she turns 62. Also she needs to sign up about three months before birthday as recommended. Its only rule on her earning even if file joint return as W2 or 1099 are separate even then on filing. Remember we are talking about her filing on her account.
We plan on my wife start collecting on her SS in November as she will turn 62 then. She is retired and so no additional income. My question is I plan on continuing to work until I am 65 (three more years).
will my income go against her SS earnings test? Thanks
As others have said "no".
We're all different and we all have different needs. Some here don't need any social security and would be just fine retiring without it while for others social security benefits constitute the largest share of their retirement income.
The best thing about ss benefits is for most of us, certainly not all but a majority, our benefits will not be taxed on the federal or even state level. Basically, for most, but not all, benefits are equivalent to "take home pay".
Let's assume your wife's FRA benefit is $2,000. By taking it at 62 she will receive 75% or $1,500 which comes out to $18,000 in a year.
Assuming you work earning $60,000 your total income is $78,000.
The worksheet says you will owe $3,025 in federal taxes on your wife's ss benefit alone. One of every six months of benefit will vaporize into thin air.
Now let's say you both start collecting at 66 (I know you said 65 but I am just trying to make the math easy) and both of you would receive $2,000/month for a combined benefit of $48,000/year.
According to the worksheet not a penny of that would be taxed assuming you do not have any other income.
With you working, and taking the $60k example, by waiting four years your wife's real money benefit would go from $1,247 to $2,000 in terms of real take home money.
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