Social Security survivors benefits at FRA while working - tax implications with CalPERS/CalSTRS income?

At Full Retirement Age, there's no earnings test for Social Security, so you can collect your full survivors benefit while working without reduction. But yes, it will increase your taxable income. Up to 85% of your Social Security could be taxable depending on your provisional income (adjusted gross income + 50% of SS benefits + tax-exempt interest). With your CalPERS, CalSTRS, and teaching salary, you're likely already in a high tax bracket. Since you don't necessarily need the money right now (having "adequate salary"), you might consider waiting until you stop teaching to reduce your tax burden. Though remember, you're essentially leaving $2,000/month on the table. Some financial planners argue it's better to take the money and pay the taxes than to leave benefits unclaimed.

im in similar boat. took survivors benefits at 66 (my FRA) while still working part time. YES it raised my taxes but the way i see it more money is more money even if uncle sam takes some. better to have 70% of something than 100% of nothing!!! just set aside extra for taxes maybe?

There are several strategies you could consider: 1. Take the survivors benefits now, but increase your tax withholding on your CalSTRS or CalPERS payments to account for the additional income. 2. If you're age 72 or older, consider making Qualified Charitable Distributions from any traditional IRAs you might have, which can reduce your taxable income. 3. Maximize your 403(b) contributions through your teaching position to reduce your overall taxable income - the limit for 2025 is $23,000 plus an additional $7,500 if you're over 50. 4. Determine if you're subject to the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO) due to your CalPERS/CalSTRS pensions, as these could affect your survivors benefits amount. Remember that at FRA, there's no earnings test penalty, so your only consideration is taxation of benefits, not reduction of benefits.

I spent 35 years as a tax advisor for clients with public pensions. You should absolutely take your survivor benefit now! Here's why: 1. You can't "save up" Social Security benefits - months you don't claim are permanently lost 2. Tax-advantaged options: maximize your 403b contributions ($23,000 + $7,500 catch-up if over 50), which reduces your AGI 3. Consider a Health Savings Account if you have a high-deductible health plan 4. Tax withheld from SS can be adjusted using Form W-4V Yes, you'll pay some taxes, but you'll still come out ahead financially. Don't leave $2,000/month on the table because of tax concerns!

I tried calling Social Security about a similar situation last month and spent HOURS on hold only to get disconnected THREE TIMES! So frustrating. Then someone told me about a service called Claimyr that got me through to a real SSA agent in under 20 minutes. Seriously saved my sanity. They have a video demo at https://youtu.be/Z-BRbJw3puU that shows how it works. Once I actually talked to an agent, they explained exactly how my pension affected my benefits and the tax implications. Much better than guessing!

You people are OVERTHINKING this! The SSA and IRS are STEALING our money with these complicated rules! Just take your benefits NOW! You EARNED them! Your spouse PAID INTO the system! Don't let the government keep money that's RIGHTFULLY YOURS just because they might tax some of it back!

did u check if the calpers pension effects ur SS? my wife had a teachers pension in ohio and it reduced her SS by like 2/3! some rule called windfall something i think

Everyone's talking about taking benefits now vs. waiting, but there's another option: You mentioned you can apply now but preserve January as your filing date. This is likely referring to the 6-month retroactive benefits available at FRA. If you apply in March, you could potentially get benefits back to September (not January though, unless I'm misunderstanding something). With retroactive benefits, you'd get a lump sum for those months, which could impact your taxes differently than monthly payments. Worth considering how a lump sum vs. regular payments might affect your tax situation.

One consideration I haven't seen mentioned: if you're planning to claim your own Social Security retirement benefit someday (separate from the survivor benefit), the timing of the survivor claim doesn't affect your own retirement benefit. You could take the survivor benefit now and later switch to your own retirement benefit if it ends up being higher. Regarding taxes, calculating the exact impact would require knowing your specific tax situation, but if you're already in the 24% or higher federal bracket, expect to pay at least that rate on about 85% of your SS benefits. State taxation varies - California doesn't tax Social Security, which is helpful for you. A financial planner who specializes in public employee pensions might be worth consulting for your specific situation.