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Experts at Maximize My Social Security have answered more than 10,000 questions about Social Security over many years. Search for your questions and answers here.
Should My Wife Take Her Retirement Benefit Now, Or Will It Get Taxed Away?
My wife is full retirement age (66) and I am 62. She works for me, but only makes around $20k per year. When I retire, we will have around $1.5 million, plus some rental real estate. Her monthly SS right now would be $1500/month, and mine will be $2500/month at full retirement age, in 4 years. Should we collect her SS now, or would it get taxed away because I am still working? We can delay collecting hers if it is to our advantage. Thank you.
Dan,
Depending on your Modified Adjusted Gross Income (MAGI) up to a maximum of 85% of your wife's Social Security retirement benefit will be subject to federal income tax. However, since the highest marginal income tax rate is 39.6%, it won't get taxed away. Our software, MaximizeMySocialSecurity, can determine the filing strategy that gives you the maximum lifetime Social Security benefits and it will also allow you to explore alternative "What-If" I do this instead strategies.
Thanks,
Mike
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Posted:
July 31, 2016