How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29535
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

Social Security Question I will be 66 in July of 2012. I

This answer was rated:

Social Security Question: I will be 66 in July of 2012. I plan to turn in for SS in January of 2012 to get my full rate because I will be in the calendar year of when I turn 66. I plan to keep working, will I be penalized up to 50% of my benefit until July.


Hi and welcome to Just Answer!
If you will receive social security benefits and will have other taxable income - your social security benefits will be partly taxable. The simple test is - take half of your social security benefits plus other taxable income (wages, self-employment income, interest in the bank, etc) - if the total is below $25,000 for single or $32,000 for married couples filing jointly - none of your social security benefits are taxable. If the total is above the threshold - part of your social security benefits is added to your other taxable income.
Because you will retire before the full retirement age which is 66 - your social security benefits will be reduced. As you will retire at age 65 + 6 months - your benefits will be 96.7% compare what you would get if retire at 66 - see here -


Because you will reach full retirement age in 2011, you are considered retired in any month that your earnings are $3,140 or less and you did not perform substantial services in self employment.

"Substantial services in self-employment" means that you devote more than 45 hours a month to the business or between 15 and 45 hours to a business in a highly skilled occupation.
If you will be an employee and after you will start your social security benefits your earnings will be less than $3,140 in any month - your social security benefits will not be reduced.


I wasn't as concerned about taxable income as I was partial benefits because I will still be working full time.


I covered all issues that might affect your benefits. I hope the information above will help you to make the best choice.


Please be aware that if you apply in January of 2012 - the IRS might not provide information about your earnings in 2011 by that time - and you need to attach W2 form to your application.


Let me know if you need any help or clarification.

Lev and other Tax Specialists are ready to help you

Related Tax Questions