As someone who just went through this exact situation last year, I can confirm what others have said - it's definitely your NET earnings that count, not gross! I was terrified I'd gone over the limit because my 1099s totaled around $80k, but after business expenses my actual net was well under the threshold. One thing I learned the hard way though - make absolutely sure you're tracking every legitimate business expense throughout the year, not just scrambling at tax time. The IRS (and by extension SSA) wants to see consistent, reasonable business expenses. I keep a dedicated business checking account and credit card to make the paper trail crystal clear. Also, since you're turning 66 in November, you're in a great position to manage your income strategically for those last few months before FRA. Any chance you can defer some invoicing until after your birthday month?

I'm in a similar boat - self-employed and collecting early SS benefits while trying to navigate these earnings limits. Reading through all these responses has been incredibly helpful! One thing I wanted to add is that if you're working with quarterly estimated taxes, it might be worth checking in with SSA mid-year if your income projections change significantly. I made the mistake of assuming everything would work out at year-end, but SSA actually prefers when you report substantial changes as they happen rather than waiting for the annual reconciliation. It can help avoid any surprise overpayment notices later. Also, keep copies of your Schedule SE from previous years - I've found it helpful when explaining my situation to SSA representatives who sometimes aren't as familiar with self-employment income calculations.

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.

Here's a technical point that hasn't been mentioned: There's something called the "Retirement Insurance Benefit Limitation" (RIB-LIM) that specifically addresses survivor benefits when someone claims early. This is what protects your wife's survivor benefits from your early claiming decision. Specifically, the RIB-LIM ensures that if you claim early and pass away, your widow(er) will receive the HIGHER of: 1. Your reduced benefit amount you were receiving 2. 82.5% of your unreduced PIA And if your widow(er) waits until their FRA to claim, they get 100% of your PIA regardless of when you claimed. This is why your early claiming decision won't hurt your wife's survivor benefits as long as she waits until her FRA to claim them.

As someone who recently went through this exact decision-making process, I want to add that it's worth considering getting a personalized benefit estimate from SSA that shows your specific numbers. You can create a my Social Security account online and run scenarios for different claiming ages. When I did this, I discovered that even though my early claiming at 62 wouldn't hurt my spouse's survivor benefits (thanks to the RIB-LIM protection everyone mentioned), the reduction in my own monthly income was more significant than I initially calculated. The break-even analysis showed I'd need to live past age 78 for waiting until FRA to be worthwhile. But knowing my wife would still get my full PIA as a survivor benefit gave me peace of mind about claiming early due to health concerns. The online calculator tools really help visualize these trade-offs with your actual earnings record.

As a newcomer to this community, I want to add my thanks to everyone who has contributed to this incredibly informative discussion! I'm 62 and have been agonizing over this exact question for months. My husband is 68 and already collecting his full Social Security benefits while still working part-time as a contractor, earning about $30,000 annually. I was convinced that his continued earnings would somehow impact my benefits when I decide to file. Reading through all these detailed explanations has been such a huge relief! It's now crystal clear that the earnings test applies only to the individual earning the income, not their spouse. I can't believe I spent so much time worrying about this when the answer is actually straightforward once it's properly explained. What really impressed me is how patient and thorough everyone has been in addressing not just the original question, but all the follow-up concerns and misconceptions that came up in the thread. The clarification about business structure not mattering (sole proprietorship vs LLC) and the distinction between the earnings test and benefit taxation were particularly helpful. I'm definitely going to explore that my.ssa.gov account suggestion and maybe even look into that Claimyr service if I need to speak with SSA directly. Thank you all for creating such a supportive environment for people trying to navigate these complex Social Security rules!

As a newcomer to this community, I want to express my gratitude for this incredibly thorough and reassuring discussion! I'm 63 and my husband is 69, already collecting his full Social Security benefits while continuing to earn income from his small accounting practice. Like so many others here, I was genuinely worried that his business earnings might somehow reduce my benefits when I file next year. This thread has been absolutely eye-opening! The consistent message from everyone that the earnings test applies individually to each spouse has completely put my fears to rest. I had no idea that married couples are treated as completely separate individuals for Social Security earnings purposes - I just assumed there would be some kind of household income consideration. I'm particularly grateful for the detailed explanation about how temporarily withheld benefits get recalculated at FRA rather than being permanently lost. That's such an important distinction that I hadn't understood before. The recommendation to set up a my.ssa.gov account to review projected benefits is also incredibly practical advice that I'm going to act on immediately. What strikes me most is how patient and knowledgeable this community is. Every question and concern that came up was addressed with real-world experience and clear explanations. Thank you all for creating such a supportive environment for those of us trying to navigate these complex Social Security decisions!

As someone who just went through a similar situation, I wanted to share what I learned. I'm a retired teacher from Iowa (also NPERS-covered) married to a former railroad worker. Here's what I discovered: The good news is that because Nebraska teachers DO pay into Social Security (unlike some other states), you won't face the full GPO reduction on your Railroad spousal benefits. However, there's still a Railroad-specific offset that reduces spousal benefits based on your government pension. My advice: Start with getting your Social Security statement online at ssa.gov to see your projected benefits. Then call RRB at 1-877-772-5772 specifically for spousal benefit estimates. When you call, mention you're a Nebraska teacher who paid into SS - this helps them apply the right formulas. One thing that surprised me: the timing of when you claim each benefit can make a huge difference in your total income. I ended up delaying my own Social Security until age 67 while taking the Railroad spousal benefit at 60, which maximized my overall benefits despite the reductions. Also, keep detailed records of all your conversations and get benefit estimates in writing. The rules are complex and even the agents sometimes give conflicting information. Good luck with your planning!

I'm in a somewhat similar boat - I'm a retired teacher from Wisconsin (also covered by Social Security) and my husband worked for BNSF Railroad. What I found most helpful was creating a spreadsheet to track all the different benefit estimates once I got them from each agency. One thing to keep in mind is that the Railroad Retirement Board has their own version of the Government Pension Offset called the "public pension offset" but it's calculated differently than SSA's GPO. For me, the RRB offset was actually less severe than what SSA's GPO would have been. Also, don't overlook that you might be eligible for a small Tier 2 spousal benefit from Railroad Retirement in addition to the Tier 1 - make sure to ask about both when you call RRB. The timing strategy others mentioned is crucial. I ended up taking my teacher pension immediately (no reason to delay that), RRB spousal benefits at 60, and I'm waiting until age 70 for my own Social Security to maximize the delayed retirement credits and minimize the WEP reduction. Get everything in writing and don't be afraid to call multiple times if you get conflicting information - I had to call RRB three times before I got an agent who really understood the teacher pension interaction.