I'm sorry for your loss, Keisha. This is such a stressful situation to navigate while you're grieving. I went through something similar when my father passed away two years ago, and the confusion around these payments is completely understandable. From what I learned during my experience (and confirmed with a tax professional), since the Social Security Administration reissued that payment specifically to you as the survivor with both names on the check and "deceased" noted, it's considered YOUR income for tax purposes. The key indicator here is that you received the SSA-1099 form - whoever gets that form is responsible for reporting it on their tax return. I'd recommend double-checking the name that appears first on your SSA-1099 form. If your name is the primary recipient listed, then you definitely report it on your personal return. The IRS treats this as survivor income, not estate income or income belonging to the deceased. One thing that helped me was keeping a copy of the original check along with the SSA-1099 for my records, just in case there were ever any questions later. The documentation clearly shows this was a legitimate survivor payment, not an overpayment that should have been returned. Take care of yourself during this difficult time, and don't hesitate to reach out to a tax professional if you need additional peace of mind before filing.

I'm so sorry for your loss, Keisha. Losing a parent is incredibly difficult, and having to navigate these complex tax issues on top of grief makes it even harder. I wanted to add something that might be helpful - if you're dealing with multiple tax returns (your personal return, your mom's final return, and the estate return), you might want to consider using the same tax professional or software for all three. This can help ensure consistency and catch any potential issues where the returns might interact with each other. Also, since you mentioned this was a January 2025 payment for someone who passed in December 2023, there might have been a significant delay in processing. If you haven't already, you might want to confirm with Social Security whether there are any other payments or adjustments coming. Sometimes there can be retroactive calculations or corrections that affect multiple months. The good news is that based on everyone's advice here, it sounds like you have a clear path forward for reporting this payment. Just remember to keep all your documentation organized - the check, the SSA-1099, any letters from SSA, etc. These will be invaluable if you ever need to explain the situation to the IRS or if questions come up during processing. Hang in there, and don't hesitate to get professional help if you need it. Taking care of yourself is the most important thing right now.

Thank you everyone for the helpful advice! I'm going to apply for Medicare Parts A & B immediately, then get my Part D within the 63-day window, and apply for Social Security in July for my November FRA. I really appreciate all the timeline clarification and document requirements - this has been so much clearer than anything I found on the SSA website!

Great question! I'm actually going through a similar situation - turning 66 in December and trying to navigate all these deadlines. One thing I learned that might help: if you're worried about the SSA phone system being overwhelmed, try calling your local Social Security office directly instead of the national number. I found the wait times were much shorter, and the staff there seemed more knowledgeable about local processing times. Also, don't forget to ask about any state-specific programs that might supplement your Medicare coverage - some states have additional assistance programs that can help with premiums or copays. The application process definitely feels overwhelming at first, but breaking it down into these separate steps like everyone mentioned really helps!

As a newcomer to this community and the Social Security system, I'm finding this discussion incredibly helpful! I'm 64 and just started collecting benefits a few months ago while still working part-time. Like so many others here, I had absolutely no idea that PTO payouts would count toward the earnings limit - this is such crucial information that really should be explained more clearly when you first apply for benefits. What's particularly valuable is seeing how experienced members have developed systems for tracking all these different income sources throughout the year. The spreadsheet approach with quarterly check-ins seems like the smart way to stay on top of this. I'm also intrigued by the suggestions about talking to HR regarding payment timing - it never occurred to me that companies might be flexible about when they process these payouts, especially when Social Security implications are explained. Reading about everyone's real experiences with bonuses, overtime, and unexpected payments has really driven home how many potential "gotchas" exist beyond regular wages. I'm definitely going to start implementing the tracking systems discussed here and have that conversation with HR about any upcoming compensation changes. Thanks to everyone for sharing your knowledge - it's helping newcomers like me avoid what could be very costly mistakes!

As someone brand new to both this community and the Social Security benefits world, this entire thread has been absolutely invaluable! I'm 62 and just started collecting early retirement benefits last month while working part-time. Reading about this PTO payout situation has been a real wake-up call - I had no clue that accumulated vacation time would count toward the earnings limit when paid out. This is exactly the kind of information I wish SSA had explained more clearly during the application process. The systematic tracking approaches everyone's sharing here are brilliant - I'm definitely going to create that earnings spreadsheet with quarterly check-ins that multiple people have recommended. What really stands out to me is how many experienced members emphasize being proactive rather than reactive. The advice about talking to HR regarding payment timing is something I never would have considered, but it makes perfect sense that companies might be flexible when you explain the Social Security implications. I'm already planning to have that conversation with my HR department about any potential bonuses, policy changes, or other compensation that could affect my annual earnings calculation. It's frustrating that navigating this system requires so much vigilance on our part, but I'm grateful for communities like this where people generously share their real-world experiences to help newcomers avoid costly mistakes. Thanks to everyone for being so helpful in sharing your knowledge!

I've been following this thread closely as someone who works with Social Security claims regularly, and I want to emphasize a few critical points that could save you thousands of dollars in the long run. First, regarding the timing strategy mentioned - you're absolutely right that birth year matters for restricted applications. If you were born before January 2, 1954, you still have access to some claiming strategies that were grandfathered in. This could allow you to claim survivor benefits first while letting your own retirement benefit grow until age 70. Second, I want to stress the importance of getting multiple calculations from SSA. Ask them to show you: - Your own retirement benefit at 62, FRA, and 70 (with WEP applied) - Survivor benefits with GPO reduction at different claiming ages - Ex-spousal benefits with GPO reduction - The "break-even" ages for each strategy Third, don't overlook the Medicare implications. Since you mentioned paying Medicare taxes in your government job, you're covered there, but the timing of when you claim Social Security can affect Medicare Part B premium costs due to IRMAA (Income-Related Monthly Adjustment Amount) thresholds. The strategy of taking your own reduced benefit at 62 plus part-time work could indeed be optimal, especially given that your pension has no COLA while Social Security does. Just make sure any part-time work won't push you over the IRMAA thresholds for Medicare premiums. This is definitely a situation where getting professional help - either through SSA directly or a fee-only financial planner who specializes in Social Security - could pay for itself many times over.

I've been working as a Social Security disability attorney for over a decade, and I can tell you that cases involving government pensions are some of the most complex I see. Your situation is actually more common than you might think, and while the WEP/GPO rules are frustrating, there are still strategies to optimize your benefits. One thing I haven't seen mentioned yet is the importance of understanding exactly how your pension is structured. Some state pension systems have portions that DID pay into Social Security (like if you had any federal employment or if your state system changed over time). If any portion of your pension comes from SS-covered employment, that could affect the GPO calculation. Also, regarding your ex-spouse benefits - make sure to verify that your ex-spouse is still living and hasn't remarried before age 60 (which would affect your eligibility). The 12-year marriage length is good since it exceeds the 10-year requirement, but there are other eligibility factors to confirm. I'd strongly recommend bringing copies of ALL your pension documents, marriage certificates, divorce decree, and your late husband's death certificate to your SSA appointment. The more documentation you have upfront, the more accurate their calculations will be. Given the complexity and the significant financial impact over your lifetime, this might also be worth a consultation with a Social Security attorney who handles retirement planning, not just disability cases. Many of us offer free consultations for retirement benefit optimization.

I'm in a very similar situation - just turned 64 and planning to start SS benefits while working part-time. This thread has been incredibly eye-opening! I had no idea that earnings are counted when earned rather than when paid. One question I haven't seen addressed yet: what happens if you work irregular shifts that span midnight? Like if I work a shift from 11 PM on January 31st to 7 AM on February 1st - which month do those earnings count toward? Also, has anyone dealt with commission-based pay while on SS? I'm wondering if commissions follow the same "when earned" rule or if there are special considerations since commission earnings can be harder to pin down to specific dates. Thanks to everyone who has shared their experiences - this is exactly the kind of real-world advice that's impossible to find on the official SSA website!

This entire discussion has been so helpful! I'm in a similar boat - 65 and considering claiming SS while working part-time. The "earned vs. paid" distinction is crucial and something I completely misunderstood before reading this thread. One thing I'm wondering about that I haven't seen mentioned: what about vacation days that you've accrued but haven't taken yet? If I have 40 hours of vacation time built up from working earlier in the year, and then I take that vacation time in December, does that count toward December's earnings limit even though I "earned" those hours months earlier? Also, for anyone dealing with this - I found it helpful to set up a monthly calendar reminder to review my earnings tracking. It's easy to forget to update your records when you're focused on just getting through each work week, but staying on top of it monthly has saved me from any surprises. Thanks again to everyone for sharing their real experiences with this complex system!