I am a 62 year old male, and have decided to retire, and start collecting social security early (rather than waiting till age 65 or beyond.)
in 2016 will be zero (other than social security). I have a 401K and will not take out any money from it at this time.
My question is this: My wife is age 57 and still working. She works part time as an instructor at a community college and makes about $10-$15,000 a year. However she also is the president of a small business corporation which she manages (web site design and management services), and takes home no salary, but merely dividends
, and pays her own social security on it, via a K1 form
at the end of each year. The K1 shows amount earned on it of about $55,000-$65,000, depending on the year.
So my income is zero. Her's is, let's average about $60,000 on her K1, and about $12,000 on her W2 from the school
Will my social security payment be penalized or taken away due to her income level? And if so, is there a way around that by filing
separately or something? There's no sense in me retiring early if I'm not going to keep any of the social security payment, which I was just going to bank for the future. Any help would be appreciated.