Wait i'm confused...I thought the spousal benefit reduction was only based on when YOU file...but I thought the survivor benefit reduction was based on when the DECEASED person filed??? Is that not right?? Can someone clarify??

After reading through this discussion, I think there's an important distinction that needs clarification: The reduction from claiming spousal benefits early does NOT carry over to survivor benefits. These are completely separate calculations. For survivor benefits: 1. If you claim survivor benefits before your FRA, they are reduced based on YOUR age at the time you claim THOSE benefits. 2. Survivor benefits can be affected by whether your deceased spouse claimed early, but NOT by whether YOU claimed spousal benefits early. This is a common area of confusion. You can claim reduced spousal benefits early, and later still receive unreduced survivor benefits if you wait until your FRA to claim them (assuming your spouse didn't take reduced benefits, which in this case he did at 62).

My situation is similar to yours. I've been on survivor benefits for 3 years (I'm 64) and I started working part-time at my church. I talked to a financial advisor who specializes in Social Security issues, and he confirmed that SSA uses the ANNUAL limit for ongoing benefits, not monthly. So you should be totally fine as long as you stay under $22,680 for the year. But do yourself a favor and keep careful records of all your earnings in case there's ever a question. I keep a spreadsheet with my monthly earnings and a running total for the year to make sure I don't accidentally go over.

I want to thank everyone for their helpful responses! I feel much better knowing I can manage my annual earnings rather than worrying about each individual month. I'll definitely keep track of my total earnings to make sure I stay under the $22,680 limit for the year. I'm going to call SSA just to confirm this information for my specific situation, but at least now I have a much better understanding of how the earnings test works. This community has been so helpful!

Since ALS is progressive and your sister's speech is already affected, I'd suggest looking into assistive technology right away, in addition to the benefits applications. Many ALS patients use eye-tracking technology and speech generating devices that Medicare will cover with the right documentation. Ask her neurologist for a referral to a speech-language pathologist who specializes in ALS right away. They can help with both communication strategies and the documentation needed for Medicare to cover communication devices when needed.

I know everyone's focused on the SSDI/SSI question, but don't forget to look into whether your sister's state has a Medicaid waiver program that could help with home care. Many ALS patients eventually need significant assistance, and these waiver programs can provide caregivers, equipment, and home modifications. The income/asset limits are sometimes more flexible than regular Medicaid too. Also, has she worked enough recently to qualify for short or long-term disability through her business? That might provide some immediate income while the SSDI application is being processed, even with the expedited timeline.

The tax situation depends on your state too! Some states like NM, UT, VT tax Social Security benefits while others like FL, TX, WA have no state income tax at all. Where do you live? That could make a big difference in your calculations.

Since no one has mentioned it yet - you might want to run some actual numbers on the break-even analysis. If your wife claims at 67 versus waiting until 70, she'll need to live until approximately age 82-83 to break even (where the total benefits received by delaying equal what she would have received by filing at 67). Any years beyond that break-even point would favor delaying. Given that a woman who reaches 67 has an average life expectancy into her mid-80s, statistically delaying often makes sense, even accounting for the taxation of benefits.

Update: I finally managed to get through to SSA this morning! They confirmed my husband's application is still processing (ugh) but should be completed within the next two weeks. And yes, with his birthday being the 27th, his first payment will come on February 26th. They also said we'll receive an award letter about 2-3 weeks before the first payment. Thanks everyone for your help!

I actually ended up using that Claimyr service someone mentioned above. Felt a little silly paying to get through to a government agency we all fund with our taxes, but I was desperate after weeks of trying. Got connected to an agent in about 25 minutes!