Here are the top questions people have about when to collect social security.
We will only be discussing social security retirement income, not SSI or any disability.
So we assume you are healthy. IF you are disabled or want to collect SSI or some other benefit, visit SSA.gov for more info.
How old do I have to be to collect social security?
For most people, you can start collecting social security at age 62.
However, at age 62, because you are not at full retirement age, the monthly payment you receive will be less than it would be at full retirement age by about 30%.
The closer you are to full retirement age, the less the benefit is reduced.
So if your full retirement age is 67 and the amount you would have received is $1000 a month, then if you started collecting social security at age 62 the monthly benefit will only be $700.
When can a widow start collecting her husband’s social security?
AGE 60.
Here is an excerpt from ssa.gov about surviving spouse benefits.
We base your survivors benefit amount on the earnings of the person who died. The more they paid into Social Security, the higher your benefits would be.
These are examples of the benefits that survivors may receive:
- Surviving spouse, full retirement age or older — 100% of the deceased worker’s benefit amount.
- Surviving spouse, age 60 — through full retirement age — 71½ to 99% of the deceased worker’s basic amount.
- Surviving spouse with a disability aged 50 through 59 — 71½%.
- Surviving spouse, any age, caring for a child under age 16 — 75%.
- A child under age 18 (age 19 if still in elementary or secondary school) or who has a disability — 75%.
- Dependent parent(s) of the deceased worker, age 62 or older receive:
- One surviving parent — 82½%.
- Two surviving parents — 75% to each parent.
Percentages for a surviving divorced spouse would be the same as above.
There may also be a special lump-sum death benefit.
Can I work and collect social security at the same time?
If you are at full retirement age, You can work and receive social security at the same time without needing to pay back anything to the government.
IF you are not at full retirement age, then there are income limits before your benefits are reduced and you might be required to pay back some of the money or have your future benefits reduced until the government gets their money back.
HERE IS AN EXCERPT FROM SSA.GOV
How Much Can I Earn and Still Get Benefits?
When you begin receiving Social Security retirement benefits, you are considered retired for our purposes. You can get Social Security retirement or survivors benefits and work at the same time. However, there is a limit to how much you can earn and still receive full benefits.
If you are younger than full retirement age and earn more than the yearly earnings limit, we may reduce your benefit amount.
If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2023, that limit is $21,240.
In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2023, this limit on your earnings is $56,520. We only count your earnings up to the month before you reach your full retirement age, not your earnings for the entire year.
Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn.
Do I have to pay tax on Social Security income?
Each January you will receive a Form 1099-SSA from the government that shows how much retirement money they paid you during the prior year. So you will receive the form in January of 2024 that reports total payments for 2023.
Depending on if you have any other income, up to 85% of the income is taxable.
- file a federal tax return as an “individual” and your combined income* is
- between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
- more than $34,000, up to 85 percent of your benefits may be taxable.
- file a joint return, and you and your spouse have a combined income* that is
- between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits.
- more than $44,000, up to 85 percent of your benefits may be taxable.
- are married and file a separate tax return, you probably will pay taxes on your benefits.
Your adjusted gross income
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your “combined income“
Example 1: If you are collecting social security and you don’t have any other income.
You will not owe any taxes.
Example 2: You collect social security of $10k during 2023, and you also have $8k of interest income from a bank account.
You take half of retirement income add to $8k of interest. total is $13k of combined income.
none of the retirement income is taxable.
Moontree Tax Service is available and accepting new tax clients.
