my uncle did this exact thing last year!! suspended for 8 months while he sold his business then started again. worked out great for him tax wise

This is such a smart strategy! I'm in a similar situation with rental properties creating tax headaches. One thing I learned from my financial advisor is to also consider the timing of when you restart benefits in relation to your tax year. If you're planning to sell properties in early 2025, you might want to restart benefits in January 2026 to keep that tax year cleaner. Also, don't forget that when you do restart, it might take a month or two for payments to actually begin again, so plan your cash flow accordingly. The 8% annual delayed retirement credits really do add up - even a short suspension can be worth it if it saves you from getting hammered by the tax torpedo!

Btw make sure your husband has all his documents ready. They're super strict about that stuff. Birth certificate, marriage license, the whole deal. My application got delayed 2 months cuz I didn't have right papers.

One thing to keep in mind is that when your husband files his application, he should specify February 2025 as his desired start date to make sure he gets that first payment in February. Sometimes people accidentally select dates that push their first payment back a month. The SSA processes applications pretty quickly these days, but it's good to file at least a few weeks before you want benefits to start, especially if you're doing it online. Also, since he's claiming before his FRA, make sure he understands the earnings test if he plans to work at all after claiming - that can affect his benefits until he reaches full retirement age.

To address your latest question - there isn't a perfect calculator for your specific situation because of the complexity with the potential GPO repeal. However, here's a step-by-step approach: 1. Create a my Social Security account at ssa.gov 2. Look at your ex-spouse's earnings record (you'll need to request this from SSA) 3. Calculate 50% of his Primary Insurance Amount (PIA) 4. Compare that to your own benefit (if you have one from work covered by Social Security) Without GPO, you would be eligible for the higher of your own benefit or up to 50% of your ex's benefit. Since you worked as a teacher in a state where you didn't pay into Social Security, you likely don't have your own SS benefit, so you'd get the 50% spousal benefit if GPO is repealed. And yes, you'll still need to meet that 2-year divorce requirement.

Welcome to the community! I'm new here but have been following this GPO discussion closely as my situation is very similar. I'm a retired teacher from Texas (also didn't pay into SS) and have been married for 15 years. My husband is 62 and planning to retire next year. Reading through all these comments has been incredibly helpful - especially learning about the 2-year divorce requirement and the current status of the GPO repeal. Like many of you, I was under the impression it had already passed! One thing I wanted to add that might help others: I called my state teachers' retirement system and they said they're tracking the GPO legislation closely and will notify members once anything is officially signed into law. They recommended not making any major financial decisions based on potential benefits until it's actually enacted. Stay strong everyone - hopefully we'll all get the benefits we've been waiting for soon!

A few additional points that might help your sister: 1. Her benefit amount will be approximately 41.7% of her ex-husband's PIA if she files at exactly age 64. For each month she waits after that (until reaching her FRA), the percentage increases slightly. 2. If she was born in 1961, her Full Retirement Age is 66 and 10 months. Waiting until then would give her the full 50% of his PIA. 3. Very important: If her ex-husband hasn't filed for his own benefits yet, she can't receive ex-spouse benefits until he becomes eligible (age 62), even if she's already past that age herself. 4. The estimate you're giving her of $2,000+ might be too high. Even with maximum earnings, the highest spousal benefit for someone reaching FRA in 2025 is around $1,800-1,900. With six-figure earnings but not at the maximum taxable amount every year, a more realistic estimate might be $1,400-1,700 at FRA, and less if taken early. 5. The phone interview will give her exact numbers based on both their earnings records, which will provide much better clarity than our estimates here.

One thing I haven't seen mentioned yet - your sister should also ask about Medicare eligibility during her phone interview. Since she's 64 and losing her alimony income, she may qualify for Medicare Part B premium assistance programs like QMB (Qualified Medicare Beneficiary) or SLMB (Specified Low-Income Medicare Beneficiary). These programs can help cover Medicare premiums, deductibles, and copayments based on income limits. When her financial situation changes after the alimony ends, she'll want to make sure she's getting all the healthcare cost help available to her. The SSA representative can provide information about these programs or direct her to the right resources.

Based on all the discussion, here's a summary for your sister: 1. Applying in January for January benefits avoids the 2023 earnings test completely 2. The severance package counts as earnings in the year received (2023) 3. If she applies for any 2023 months, she'll likely see most or all benefits withheld due to her high earnings 4. While withheld benefits are eventually factored back in after FRA, it creates unnecessary complications 5. She should consider the early claiming reduction (about 20% at age 64) in her overall planning She should definitely apply 1-3 months before she wants benefits to begin, so if she's targeting January, she should start the application soon.

One thing I haven't seen mentioned yet is that your sister should also consider whether she wants to elect to have federal taxes withheld from her Social Security benefits when she applies. Given her high 2023 income, she's probably used to having taxes withheld from paychecks, and SS benefits don't automatically have withholding unless you request it. She can elect 7%, 10%, 12%, or 22% withholding on Form W-4V when she applies. This might help avoid a big tax surprise next April, especially since up to 85% of her benefits will likely be taxable. Just another timing consideration for her planning!