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I am a 62 year old male, and have decided to retire, and start

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collecting social security early (rather...
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.)
My income 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.
Submitted: 1 year ago.Category: Tax
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Answered in 15 minutes by:
4/24/2016
Tax Professional: Lev, Tax Advisor replied 1 year ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,130
Experience: Taxes, Immigration, Labor Relations
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Your security payments will NOT be penalized and will not be affected by your spouse's income.
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Tax Professional: Lev, Tax Advisor replied 1 year ago
ONLY if you will be working and will receive wages or self-employment income - your social security benefits will be affected.However as you will likely file a joint tax return with your spouse - your social security benefits will be partly taxable and that part will be added to your gross income..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.
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Lev
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