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Nooooooooooo. The earnings limit ONLY APPLIES TO EARNINGS FROM A JOB. IT DOES NOT COUNT OTHER INCOME. You can have a million dollars in income from other sources but it will not count.
DH and I are retired with no job, both under 62. If we take early SS at 62: Does income from a rental property count towards the earnings limit? And if it does, is the earnings limit double for a married couple filing jointly? I know a pension and 401K withdrawals don't count, right? Also, if you sell a vacation home or rental property does the profit you make when all is said and done, count towards the earning limits for SS?
Thanks!
Last edited by bbtondo; 04-22-2018 at 06:10 AM..
Reason: added another question
nothing but earned income from a job counts for the earnings cap . unless you are a real estate professional .
however all taxable income and muni interest counts toward getting your ss taxed and also is used to determine your medicare premium . a sale of an asset can get you a big medicare premium increase as much as an additional 600 bucks a month or so for a couple .
ask me how i know ha ha ha.
the earnings cap only applies to w2 income . there are separate rules for being self employed
I understand that if either myself or husband take SS earlier than FRA there is a reduction. If he takes it at FRA 66, I will be 63. If we both take it at that time mine is reduced. I can get 1/2 of his ( with a reduction) or my own, which is almost the same amount. If he should pass I’d get his full amount, but it would reduced due to the fact that I took mine early. Or, would I NOT get a reduction on his if I take MINE out early, not his. Or am I just not understanding all the ins and outs.
Also, I keep reading and hearing that the spouse with lower earnings record should take it early and let the higher one grow. Ok, but if the higher earner dies, wouldn’t I (lower earner) be reduced forever on his?
We are contemplating having only one of us file next year to supplement our income and can’t fund this info out. Lastly, he could qualify to collect 1/2 of mine letting his grow as he was born in 1953. But, again, would his be reduced when he finally takes his?
Ok, if you read through that and aren’t confused and know the answer, I’d love to hear it!
Sure sounds like the option of you taking at 63 and him doing the Spousal (Restricted Application) is the way to go.....
but remember , who ever's record gets collected on by filing restricted must be collecting themselves too so if he files for 1/2 hers she has to be collecting and can't delay
I am late to this thread, but if I were you, I would either buy or go to the library and check out Laurence Kotlikoff & Philip Moeller's Get What's Yours -- Revised & Updated: The Secrets to Maxing Out Your Social Security: https://smile.amazon.com/s/ref=nb_sb...ence+kotlikoff
nothing but earned income from a job counts for the earnings cap . unless you are a real estate professional .
however all taxable income and muni interest counts toward getting your ss taxed and also is used to determine your medicare premium . a sale of an asset can get you a big medicare premium increase as much as an additional 600 bucks a month or so for a couple .
ask me how i know ha ha ha.
the earnings cap only applies to w2 income . there are separate rules for being self employed
Thanks! Really appreciate the answer. I was aware of taxable income counting as SS is taxed and also of the medicare premium with the sale of an asset. Learned that from you! LOL
I understand that if either myself or husband take SS earlier than FRA there is a reduction. If he takes it at FRA 66, I will be 63. If we both take it at that time mine is reduced. I can get 1/2 of his ( with a reduction) or my own, which is almost the same amount. If he should pass I’d get his full amount, but it would reduced due to the fact that I took mine early. Or, would I NOT get a reduction on his if I take MINE out early, not his. Or am I just not understanding all the ins and outs.
Also, I keep reading and hearing that the spouse with lower earnings record should take it early and let the higher one grow. Ok, but if the higher earner dies, wouldn’t I (lower earner) be reduced forever on his?
We are contemplating having only one of us file next year to supplement our income and can’t fund this info out. Lastly, he could qualify to collect 1/2 of mine letting his grow as he was born in 1953. But, again, would his be reduced when he finally takes his?
Ok, if you read through that and aren’t confused and know the answer, I’d love to hear it!
Why don't you simply sit down with a good CPA for this advice. ??
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