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LawTalk, Attorney
Category: Legal
Satisfied Customers: 37854
Experience:  I am a practicing attorney with more than 3 decades of experience in the legal field.
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I have filed Social Security benefits at age 62 and have a

Customer Question

I have filed for early Social Security benefits at age 62 and have a four year old duaghter who also qualifies.
I qualified in August but the held benefits till October as I am still working.
I estimated next year to make approximately $25,000
Is there ways or advice on how not to be penalized. I am in a job I enjoy and work three days a week.
But the fact my duaghter gets $920 and I get $1340 is great.
I have a partner...We are not married and file seperately
Up until this year I have filed with her as a dependent as i get the earned income credit.
But I understand that tax refund as well as my SS check with be used and I cold be penalized?
Submitted: 1 year ago.
Category: Legal
Expert:  LawTalk replied 1 year ago.

Good afternoon,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

Quite simply, there is no way to earn $25,000 per year and not have both your own early retirement befit, and your daughter's benefit decreased because of your additional income.

If you are under full retirement age for the entire year, social security will deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2015, that limit is $15,720.

In the year you reach full retirement age, social security will deduct $1 in benefits for every $3 you earn above a different limit. In 2015, the limit on your earnings is $41,880 but they only count earnings before the month you reach your full retirement age.

The social security benefits you receive are not included in that $15,720 limit.

Consequently, if you earn $25,000 next year, then your own benefits will be decreased by about $7,000 and your daughter's benefits will be decreased by the same amount.

Under the circumstances, it would make better sense for you to delay your social security benefit for another year or two. First because doing so will increase your ultimate benefit by about 6% for each year you wait between now and age 66, and second because what you are presently getting from social security for both you and your daughter amounts to about $27,000---but with the income penalty that will be applied, your net benefit after the penalty will be just about $13,000 for the both of you.

And if you do take the benefit in 2016 and do not tell social security that you will be earning that much so that they can decrease your awards, then you will be hit with an overpayment demand of about $14,000 as soon as you file your 2106 tax return in 2017.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Please remember to rate my service to you so that I can be compensated for helping you. Thank you in advance.

I wish you and yours the best in 2015,


Expert:  LawTalk replied 1 year ago.

This seems like a very crucial matter for you, and your questions and issues suggest that an in-depth conversation might best suit your needs. If you are interested, for a nominal charge I can offer you a phone conference as opposed to continuing in this question and answer thread. I will make that offer to you after I get this posted to your question thread. All you need do is accept the offer if you would like me to call. Let me know if you don't want a call and I can continue here with an answer.