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PDtax, CPA firm owner
Category: Social Security
Satisfied Customers: 4512
Experience:  35 years tax and professional advice in all matters money
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I am turning 62 next year on 1/31. I am thinking about

Customer Question

I am turning 62 next year on 1/31. I am thinking about applying for SS and continue to work. I make over the yearly limit. From my calculations, I would get a check next year (I plan to have it taxed at 25%) but would be penalized the next year by $1798. I plan to work the next year until the end of March. My family say I'm wrong to do this. What is your advice
Submitted: 1 year ago.
Category: Social Security
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'm PDtax. I'll advise.

Expert:  PDtax replied 1 year ago.

I normally tell people not to draw the early benefit unless you need the money. Delaying will add 7% per year, and save that penalty.

You didn't add the other facts, like your income, need for $, health, and other assets for retirement. And your future benefit will be increased by the repaid social security, but I like the higher benefit for life.

Expert:  PDtax replied 1 year ago.

Unless you can invest all the social security to replace the future income of 7% of your benefit, every month for life, the penalty and tax cost reducing your checks, this is not a good idea for most folks.

Expert:  PDtax replied 1 year ago.

Some people just want the money. But your decision must have pluses to overcome the financial loss.

Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.