Just to give you a concrete example with numbers to help with your planning: If your combined income is $65,000 (including half of her SS benefits of $9,000), then you'd be well into the range where 85% of her benefits would be taxable. With a $1,500 monthly benefit: - $1,500 × 12 = $18,000 annual SS benefit - 85% of $18,000 = $15,300 taxable amount - At a 12% federal tax bracket, that's roughly $1,836 in taxes on her benefits for the year - Monthly equivalent: about $153/month in taxes So if she chooses 10% withholding ($150/month), she'd receive $1,350 monthly and be very close to covering the tax liability on the benefits.

Don't forget that the $1500 benefit amount on the SSA website assumes you continue working until your FRA with the same income. If she's retiring completely at 62, the actual benefit might be a bit lower than what's estimated. Might be worth checking with SSA directly to get a more accurate figure before you finalize your budget.

Social Security Administration policy clearly states that while you are permitted to use a child's benefits for their food, shelter, clothing, medical care, and education, you must be able to account for how ALL funds were spent. The dedicated bank account recommendation is based on SSA's POMS section GN 00603.010, which outlines representative payee responsibilities. As a representative payee, you'll be required to complete an annual Representative Payee Report (Form SSA-623) documenting how benefits were used. While not technically required to have a separate account, it significantly simplifies your compliance obligations. If your daughter's benefit amount exceeds her direct expenses, you should also know that accumulated funds exceeding $2,000 may need to be placed in a dedicated savings account to avoid potential issues with the resource limit if she ever needs SSI benefits in the future (different from the SSDI child's benefits she's currently receiving).

whats a FRA number? is that different from regular social security?

i think u can just go to ur bank and do a wire transfer. thats what my cousin did when he had to return overpayment. but maybe withdrawal is different idk

Update: I finally received my repayment instructions today! For anyone who might face this situation in the future, it took exactly 17 days from when my benefits were suspended to receive the letter with repayment details. They gave me 30 days to return the money (which was slightly less than I calculated - $19,218 instead of $19,500) and provided a specific payment address and reference number. They included options for check, money order, or an electronic payment through Pay.gov. Thanks everyone for helping me through this stressful waiting period!

my cousin waited til 70 but then died at 72!!! sometimes i think waiting is a mistake... but i guess u already decided.

make sure u bring up retroactive benefits in ur call!!!! SSA doesnt always tell u about this unless u ask. if u wait til 70 u can actually get up to 6 months of retroactive benefits if u want them

OMG the EXACT same thing happened to my sister!!! Her online account showed everything approved in one day too! She ended up having to get her congressman involved after 6 months of nothing happening with her reconsideration. Two weeks after the congressional inquiry she suddenly got a call from someone at SSA saying they found the "error". DONT WAIT - call your congressional rep NOW!

Something critical to understand: there are strict time limits on retroactive adjustments for benefit calculation errors. Under Social Security regulations, if your reconsideration is successful, they can only pay you retroactively for 12 months from the date you filed the reconsideration. I'd recommend sending a certified letter to both your local office AND the processing center (ask your local office for the address) stating that you're inquiring about the status of your reconsideration filed on [exact date]. Reference your claim number and explicitly state that you're concerned about potential retroactive payment limitations if the review isn't completed promptly. This creates a paper trail showing you've been actively pursuing resolution, which can be important if you later need to argue for extended retroactive payments.

btw the COLA is rumored to be around 2.5% this year. not great but better than nothing!!

One important clarification: The COLA being announced this week will be effective for payments received in January 2025. Since Social Security pays benefits in the month following the month for which they are due, your February 2025 payment (which is for January 2025) will indeed include the COLA increase. You should receive a notice called "Your New Benefit Amount" in December that will show: 1. Your current benefit amount 2. The new benefit amount after COLA 3. The date the new amount takes effect This is sent automatically to all beneficiaries - no need to request it.

Did anyone mention how the payments work when she starts? She won't get a november payment in november, SS pays a month behind so her first check will come in DECEMBER for the november benefit. took me by surprise when i retired!!

I think everyone is overthinking this lol. Your friend just needs to wait till she's fully retired age (November) and she'll be fine. All this talk about earnings limits is just confusing everyone. SSA doesn't care what you make before you start taking money from them!

UPDATE: I just spoke with an SSA supervisor who confirmed there IS a systematic delay in the pre-notification files they send to the Federal Reserve that banks use for early deposits. This is related to year-end processing and implementation of the 2025 COLA increases. The important points: 1. Actual payments are not affected and will post on your regular payment date 2. The early deposit feature many banks offer is temporarily disrupted 3. This should resolve itself by next month's payment cycle 4. If your payment doesn't post on your official payment date, THEN it's considered late Hope this helps ease some concerns.

Just checked my account - my deposit just posted! It's Tuesday evening here. So it looks like they're starting to process them now, just a few days later than the usual early deposit. Hope everyone else sees theirs soon too!

Just to add one more important point: Since your husband has been in a teaching position not covered by Social Security, make sure you both request your Social Security statements or check your mySocialSecurity accounts online. The estimates shown there won't automatically account for WEP or GPO reductions, so the actual benefits could be lower than what's displayed. It's worth considering a consultation with a financial advisor who specializes in retirement planning for public employees, as these provisions can be quite complex and dramatically affect your optimal claiming strategy.

Based on what you've described, your best strategy is likely to focus on your own benefit. Since it will be higher than your potential spousal benefit (50% of your husband's FRA amount), you'll want to consider whether to take your own benefit early at 62 (with a permanent reduction) or wait until your Full Retirement Age (67) or even age 70 (for maximum benefits). Each year you delay claiming from 62 to 70 increases your benefit by approximately 8%, which is a guaranteed return that's hard to beat elsewhere. But of course, that depends on your health, financial needs, and other retirement income sources. And as others mentioned, definitely account for any potential WEP/GPO impacts in your calculations.

what about if you apply for ssdi instead of retirement? is it the same thing or different rules? asking for my sister

SSDI has different rules. For disability benefits, the application date can be important because your