As someone new to this community, I just wanted to say how helpful this discussion has been! I'm not dealing with a QDRO situation myself, but I learned so much about how different types of income affect Social Security benefits. The distinction between the earnings test (wages only) and taxable income calculations (includes pensions) is something I never understood before. @Amara Okafor - it sounds like you got some really solid advice here. The summary from Dylan Cooper seems spot-on, and Ava Rodriguez's point about keeping detailed records is smart. I hope your medical situation improves and that you're able to manage everything smoothly with both Social Security and your taxes. One quick question for the group - does anyone know if there are any good resources or guides specifically about navigating Social Security rules during major life changes like divorce or health issues? This seems like such a complex area where small mistakes could be costly.

I wanted to add one more perspective as someone who works with retirement benefit planning. While everyone has covered the immediate Social Security implications well, there's another consideration worth mentioning - if you're planning to use 20% of the QDRO distribution for medical expenses, you might want to consider whether those qualify for a Health Savings Account (HSA) if you have one, or if paying them directly from the distribution affects your overall tax strategy. Also, since you mentioned health issues led to your early retirement, you might want to look into whether you qualify for any state disability programs or other benefits that could supplement your reduced Social Security payments. Sometimes there are resources available that people don't know about, especially for those who fall into that gap where they can't work their previous job but don't qualify for federal disability. The community has given you excellent advice about the QDRO reporting requirements. Just wanted to make sure you're exploring all your options to maximize your financial security during this challenging time.

I work as a benefits coordinator and see this exact confusion ALL the time. You've gotten great advice here, but I want to emphasize one more point - when you do speak with SSA, ask specifically about Form SSA-131 (Employer Report of Special Wage Payments). Sometimes there are nuances in how different types of caregiver payments are classified that could affect your situation. Also, since you're an Individual Provider, make sure you understand whether you're classified as an employee or independent contractor for your caregiver work. This can sometimes impact how the earnings are reported and counted for the earnings test. The documentation suggestions from others are spot-on. I've seen cases where people had to fight incorrect earnings calculations because they didn't have proper paperwork showing the nature of their caregiver income. Better to over-document than under-document with SSA! One last thought - have you looked into whether your son might qualify for any additional services that could supplement your caregiver income? Sometimes there are respite care programs or other benefits available that could help bridge the gap if you decide to reduce your caregiving hours to stay under the earnings limit.

I'm going through something very similar right now - caring for my disabled brother and trying to figure out how claiming early retirement will work with my caregiver income. This thread has been incredibly enlightening! One thing I wanted to add that might help you and others: I discovered that some states have different Individual Provider programs with varying payment structures. In my state, we have the option to split caregiving duties between multiple family members, which could potentially help you stay under the earnings limit while still ensuring your son gets the care he needs. Also, I've been working with a fee-only financial planner who specializes in Social Security planning, and she created scenarios showing the long-term financial impact of claiming early vs. waiting. It was worth the consultation fee to see the actual numbers over a 20-year period rather than just guessing. The break-even point might be different than you think when you factor in the recalculation at FRA and future COLA increases. The point about keeping detailed records can't be emphasized enough. I've already had one issue where SSA initially counted some of my respite care payments incorrectly, and having all my documentation saved me months of back-and-forth with them. Thanks to everyone who shared their experiences here - it's so helpful to know we're not alone in navigating this confusing system!

As a newcomer here, I just wanted to say how helpful this entire discussion has been! I'm in a somewhat similar situation - planning to file for early retirement benefits next year and really worried about navigating the earnings limits correctly. Reading through everyone's experiences, it's clear that the key points are: 1) Only earnings from your entitlement month forward count toward the limit, 2) In your first year you get the monthly test which can be more forgiving, and 3) It's crucial to know your exact entitlement date from SSA, not just when you filed or received your first payment. @Sean - it sounds like you're getting some great advice here. The suggestion to check your my Social Security account online for your exact entitlement date seems really smart. And keeping detailed records like Andre mentioned sounds like a must-do. One question I have - for those of you who've been through this, is there any particular time of year that's better for calling SSA to get through faster? Or is it pretty much a nightmare year-round? I'm dreading having to call them when I file next year!

As someone who recently navigated this same situation, I can confirm what others have said - only earnings from your entitlement month forward count toward the annual limit. In your case Sean, if your entitlement date is February 2025, then your January wages don't count at all. I'd strongly recommend logging into your my Social Security account online to verify your exact entitlement date. This will give you the definitive answer you need. Also, since you mentioned starting a consulting business, remember that self-employment income is counted when you receive it, not when you earn it - which can actually work in your favor for timing payments. The monthly test in your first year is really helpful for people like us who retired mid-year. As long as you stay under $1,860/month in any given month you're entitled to benefits, you'll receive your full payment for that month regardless of your annual total. One last tip - I set up a simple spreadsheet to track all my earnings month by month. It's been invaluable for staying on top of where I stand with the limits and avoiding any surprises!

I've been following this thread closely and wanted to share another option that worked for me when I needed my divorce decree from 1995 for SSA benefits. If your courthouse doesn't offer digital copies, try calling the Family Law division directly rather than the general clerk's office. They often have different procedures and fee structures for divorce records. In my case, the Family Law clerk was able to expedite my request for an additional $20 rush fee and had it mailed within one week instead of the standard 4-6 weeks. She also mentioned that divorce decrees older than 20 years sometimes require special handling, which might explain why some courthouses quote longer wait times. Another thing to consider - if you have any documentation from your original divorce attorney or copies of settlement agreements that reference your case number, bring those when you apply at SSA. While they can't substitute for the certified decree, they can help SSA verify basic information and potentially speed up processing once you do submit the proper documentation.

I've been reading through all these responses and they've been incredibly helpful! I wanted to add one more option that saved me when I was in a similar situation last year. If your courthouse doesn't offer digital copies and you're facing long wait times, check if there's a legal document retrieval service in your area. These are private companies that specialize in obtaining court records quickly. I used one called National Document Retrievers when I needed my marriage certificate urgently for survivor benefits. They charged $65 total (including their fee and court costs) but got my certified copy in 3 business days when the court was quoting 6 weeks. They handle all the paperwork and pickup/delivery, which was worth it for me since I was dealing with a tight deadline. You can usually find these services by googling "court document retrieval" plus your city/county name. Not all areas have them, but if yours does, it could be a lifesaver when time is critical. Just make sure they provide truly certified copies with official seals that SSA will accept, not just notarized photocopies. The key takeaway from everyone's advice here is definitely to start your SSA application now to establish your filing date while exploring all these different options for getting your divorce decree!

As a newcomer to this community, I wanted to share some additional insights that might help with your planning. I recently assisted my aunt through a very similar situation in Indiana, and there are a few practical aspects that haven't been fully covered yet. One thing to consider is the timing of when you actually file your Social Security application. Even though you're planning to start benefits in June, you can file up to 4 months in advance. This means you could submit your application as early as February, which would give you plenty of time to resolve any potential issues before your benefits need to start. Also, regarding the potential layoff in April - if your company offers any kind of outplacement services or career transition assistance, take advantage of them even if you're planning to retire soon. These services often include financial planning consultations that can help you optimize the timing of your various benefit applications. One practical tip that really helped my aunt: create a simple calendar marking when each type of payment arrives (unemployment is typically weekly, Social Security is monthly) so you can plan your monthly budget around the different payment schedules. This also helps with tracking what needs to be reported where. The community has provided excellent advice about Indiana's favorable rules and the tax implications. From my observation helping my aunt, the key to success was staying organized and taking advantage of all available resources. You're already ahead of the game by planning this carefully in advance rather than scrambling after a layoff happens. Best of luck with your planning - it sounds like you're approaching this transition very thoughtfully!

As a newcomer to this community, I wanted to share some additional resources and considerations that might help with your situation. I recently went through a similar transition in Indiana when my company downsized, and I learned a few things that could be valuable for your planning. First, I'd recommend contacting AARP's free financial planning services - they have counselors who specialize in exactly this type of transition between employment, unemployment, and Social Security. They can help you run scenarios to determine the optimal timing for starting your Social Security benefits, especially considering the permanent reduction for taking benefits before your full retirement age. One practical tip that really helped me: if you do get laid off in April, consider asking your employer about the timing of your final paycheck and any accrued vacation payout. Sometimes companies will let you choose whether to receive these in your final regular paycheck or as a lump sum later, which can affect when you're eligible to start unemployment benefits. Also, regarding the work search requirements for unemployment - Indiana has been pretty flexible about what counts as valid job search activities for older workers. Attending virtual job fairs, taking online skills courses, and even informational interviews can often fulfill the weekly requirements. The key is documenting everything properly in case of an audit. The community has given you excellent advice about Indiana's favorable rules for collecting both benefits simultaneously. You're being really smart to plan ahead rather than scramble after a layoff happens. Having a clear strategy will make this transition much less stressful!