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.

One thing I haven't seen mentioned yet is that you might want to look into whether your husband has enough quarters of coverage under Social Security to even qualify for benefits. Since he's been primarily in a teaching system that doesn't pay into SS, he may not have the required 40 quarters (10 years) of covered employment to be eligible for Social Security benefits at all. If he doesn't qualify for his own SS benefit, then there wouldn't be any spousal benefit for you to claim from his record anyway. You'd only be eligible for survivor benefits if he passes away and had enough work credits. This could actually simplify your planning since you'd just focus entirely on optimizing your own benefit timing. You can check his coverage by looking at his Social Security Statement online - it will show exactly how many quarters he has earned under the SS system.

To simplify what's been said and clarify a key point: if you wait until August 2025 (your FRA month) to START collecting Social Security benefits, then: 1. Your January-July 2025 earnings won't affect your benefits at all, regardless of amount 2. From August onward, you can earn unlimited income with no benefit reduction The earnings test only applies when you're actually receiving benefits before FRA. Since you're planning to start benefits exactly at your FRA month, the earnings test essentially doesn't apply to your situation at all. This is one of the advantages of waiting until exactly your FRA month to start benefits.

Just wanted to add one more consideration for your consulting work - make sure you're properly set up for self-employment taxes! Since you'll be earning $3k+ monthly from consulting, you'll likely need to make quarterly estimated tax payments to avoid penalties. The IRS generally expects payments if you'll owe $1,000 or more in taxes. Also, don't forget that as a consultant you'll be paying both the employer and employee portions of Social Security and Medicare taxes (15.3% total), though you can deduct half of this on your tax return. This is separate from the Social Security earnings test discussion but important for your overall financial planning. Good luck with the transition to consulting - sounds like you've got the Social Security timing figured out perfectly!

Thank you for the kind words! You're absolutely right - health comes first. I hope your husband is doing well now after his surgery.

I'm sorry to hear about your heart issues, but you're asking all the right questions. Based on what others have shared here, it sounds like withdrawing your application is definitely feasible since you're well within the 12-month window and haven't received payments yet. The once-in-a-lifetime restriction is something I wasn't aware of either - that's crucial information that makes this decision more significant. Given your medical situation and the substantial treatment costs you're facing, it might make sense to withdraw now, focus on your health, and potentially reapply closer to your FRA when you'd get higher monthly benefits. The 8% delayed retirement credits mentioned earlier could really add up, especially if you're looking at ongoing medical expenses where a higher monthly payment would be beneficial. Have you calculated what your benefit amount would be at 67 versus what you'd get now at 64? That comparison might help inform your decision.

I'm still confused about how they even know what we earn month to month on 1099 work. do they just find out at tax time the next year??

As someone who went through this exact situation two years ago, I can confirm what others have said - the monthly test only applies in your first year of benefits. The key is being proactive about reporting. I kept a simple spreadsheet tracking my monthly earnings projections and would call SSA by the 15th of any month I expected to exceed the limit. Yes, getting through is a pain, but it's way better than dealing with overpayment notices later. One tip: SSA considers when you EARN the income, not when you receive payment. So if you close a real estate deal in March but don't get paid until April, it counts toward March's earnings limit. This tripped me up initially. Also, keep detailed records of all your transactions and communications with SSA. You'll need them for tax time and potentially for any disputes. The system is confusing but manageable once you understand the rules.

Something else to consider: If your niece has significant medical expenses, you might want to document all of them. Certain medical expenses and disability-related expenses can sometimes be excluded from deeming calculations, which could potentially increase her payment. When you speak with SSA, specifically ask about IRWE (Impairment-Related Work Expenses) exclusions or medical expense exclusions that might apply in a child's SSI case.

Just wanted to add another perspective here - I work as a benefits coordinator and see this situation frequently. The deeming rules can be really harsh, especially for guardians who step up to care for disabled children. A few additional things to keep in mind: 1. The deeming calculation uses a specific formula that subtracts allowances for you, your spouse, and your other children before applying the deemed amount to your niece's case. 2. If your niece has her own income (like from a special needs trust or other sources), that gets factored in too. 3. Sometimes there's a delay in SSA updating their records about household composition changes, which can affect the calculation. I'd strongly recommend getting that detailed breakdown others mentioned, and also consider consulting with a disability attorney who specializes in SSI cases if the numbers still don't make sense. Many offer free consultations and can spot calculation errors that might not be obvious to us non-experts. Your niece is lucky to have someone advocating for her - don't give up if something seems off with the math!