One additional tip for managing your withholding - you can change your withholding percentage at any time during the year if you find that 22% is too much or too little. Just submit Form W-4V (Voluntary Withholding Request) to SSA. I did this twice in my first year of collecting benefits as I figured out what worked best for my tax situation. It usually takes 1-2 months for the change to take effect, so plan accordingly if you need to adjust. Also worth noting that if you're married and your spouse also receives Social Security, you can have different withholding percentages on each person's benefits to fine-tune your overall tax strategy.

I totally don't understand or agree with the comment that withholding on SS benefits is before Medicare is deducted. I receive my first benefit in early September 2025, and I also had questions about the order in which medicare deductions and withholding are made, plus whether withholding is on the total benefit versus the benefit after medicare premiums/IRMAAs are deducted. I had heard different things from SSA agents. I just received my letters from SSA spelling this out, and it is very clear that everything stated previously on this thread is incorrect. From the letters (unless someone at SSA made an error-perish the thought), medicare premiums/IRMAAs are first deducted from my total benefit. The withholding percentage I selected on my W-4V (which is able to be done online now) is then subtracted from the remaining amount. For example, using some made-up numbers, if my total benefit is $4000, and my medicare amounts total $600, then my interim benefit is $3400. Next, 12% (in my case) of $3400 is computed ($408), and that is subtracted from $3400 to get a final net benefit of $2992. That is how the letter describes the computations and the order in which they are done.

Another thing to consider - if you have a spouse who might be eligible for spousal benefits, make sure to coordinate your application timing with theirs. Sometimes there are strategies around timing that can maximize total household Social Security income. Also, don't forget that once you start receiving benefits, you'll need to report them on your tax return - Social Security benefits can be taxable depending on your total income level. Just want to make sure you're prepared for all aspects of this transition after doing such a great job waiting until 70!

Just went through this process myself last year! One additional tip that really helped me: create a my Social Security account online if you haven't already. You can see your projected benefit amount at age 70 there, which is super helpful for planning. Also, when you do apply, keep copies of everything and take screenshots of your application confirmation. The online application is usually faster than calling, especially given how hard it can be to get through by phone. You've done the hard part by waiting until 70 - now you just need to execute the application process smoothly. Good luck!

Welcome to the community! As someone completely new to both this forum and the Social Security process, I have to say this entire discussion has been absolutely eye-opening. I'm 65 and approaching my FRA, and I had no idea how children's benefits worked until reading through this thread. @Adrian Connor, thank you for not only asking the original question but also following up with the official SSA confirmation - that real-world verification is exactly what newcomers like me need to feel confident about the process. The fact that your children get separate payments through you as representative payee, with their own 1099 forms, makes so much more sense now than trying to parse through the SSA website. The technical expertise shared by @Leo Simmons and @Aisha Jackson about family maximums, representative payee duties, and tax implications has been invaluable. I never would have understood these complexities on my own. And the practical tips about separate bank accounts and detailed record-keeping are exactly the kind of real-world advice that makes all the difference. One thing I'm wondering about - for those who have been through this process, did you find it easier to apply online initially or to call directly? I've heard mixed experiences about the online application system versus speaking with a representative, especially when children's benefits are involved. Any insights would be greatly appreciated! Thanks again to everyone for making this such a welcoming and educational community for those of us just starting this journey.

As a newcomer to this community, I want to express my gratitude for such an incredibly thorough and helpful discussion! I'm 64 and starting to seriously consider my Social Security application timeline, and I had absolutely no idea about the complexities involved with children's benefits until stumbling upon this thread. @Adrian Connor, thank you so much for asking this question and following up with the official SSA confirmation - that kind of real-world verification is exactly what those of us new to this process desperately need. The clarification about separate payments, individual 1099 forms, and representative payee responsibilities has answered questions I didn't even know I should be asking. The technical expertise shared by @Leo Simmons and @Aisha Jackson about family maximums, tax implications, and representative payee duties has been absolutely invaluable. Combined with the practical tips about separate bank accounts and detailed record-keeping, this discussion has transformed what seemed like an overwhelming bureaucratic maze into a manageable process. I'm particularly struck by how much more accessible this information becomes through real experiences versus trying to decode government websites alone. This community has provided the kind of practical guidance that makes all the difference when facing these important life decisions. Thank you all for creating such a welcoming environment for newcomers navigating the Social Security system for the first time!

This has been such an informative discussion! I'm 61 and planning to take early retirement next year, so I've been researching the earnings limit rules extensively. One thing I'd add for anyone in a similar situation: if you're planning to do any seasonal work after starting benefits, the monthly test in your first year can actually work to your advantage. For example, if you want to do tax preparation during tax season (January-April) in your second year, you'd be stuck with the annual limit. But if you start benefits mid-year and do that seasonal work in the remaining months of your first year, you can potentially earn more overall since each month is evaluated separately. Also, I've found that the SSA's online retirement estimator tool is really helpful for playing with different scenarios. You can input various start dates and estimated earnings to see how it affects your benefits. It's at ssa.gov/benefits/retirement/estimator.html if anyone wants to check it out. One last tip: make sure you understand how your employer reports wages if you're doing part-time work. Some employers report wages when earned, others when paid. This can matter for which month the earnings count toward if you're right at the monthly limit. It's worth asking your HR department how they handle this.

This thread has been incredibly helpful! I'm 61 and was completely confused about this same issue. Reading everyone's experiences really clarifies how the Grace Year works. One thing I want to confirm based on what I'm reading: if I start taking SS in July at age 62, then for the rest of 2025 (July-December), I can earn up to $1,950 each month from my part-time job without any benefit reduction? And my January-June earnings from my full-time job before I retire don't count at all toward any limit? If that's correct, it means I could potentially earn up to $11,700 (6 months × $1,950) from July-December, plus whatever I made January-June, without any SS benefit reduction in my first year. That seems almost too good to be true! Also wanted to ask - for those who have been through this, do you get any kind of confirmation or documentation from SSA about how they're applying the earnings test? I'm the type of person who likes to have everything in writing, especially when it comes to government benefits. Thanks to everyone for sharing their real-world experiences. This is so much more helpful than trying to decipher the official SSA publications!

Another thing to keep in mind is that your MySocialSecurity account will automatically update your benefit estimates each year based on your most recent earnings. So if you're still working and earning income, you'll see those estimates gradually increase over the next 18 months as your 2024 and 2025 earnings get factored in. I found it helpful to screenshot my estimates periodically so I could track how they changed as I got closer to retirement. Also, don't forget that if you have a spouse, you'll want to coordinate your claiming strategies since spousal benefits can sometimes provide additional income - especially if there's a big difference in your work histories or benefit amounts. Good luck with your planning!

One thing that might help with your planning is to understand that Social Security benefits are also subject to federal income tax if your combined income (Social Security + other retirement income + half of your Social Security benefits) exceeds certain thresholds. For individuals, that's $25,000, and for married filing jointly, it's $32,000. Up to 85% of your benefits could be taxable depending on your total retirement income. This is something the estimates don't show you - they're gross amounts, not what you'll actually receive after taxes. So when you're doing your retirement budget, make sure to factor in potential taxes on your Social Security benefits, especially if you have other sources of retirement income like 401(k) withdrawals or pension payments. A tax professional who specializes in retirement planning can help you estimate this more precisely.