Taking Social Security at 62 in Massachusetts - what deductions from $1500 monthly benefit?

Several things to consider here: 1. Medicare won't be deducted yet - she's not eligible until 65, so nothing will come out for that until then 2. Taxes depend on your combined income. Social Security benefits are only taxable if your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds $32,000 for married filing jointly. If it does, up to 85% of benefits may be taxable. 3. Massachusetts doesn't tax Social Security benefits at the state level, so that's one positive. 4. The bigger question is whether she's still working? At 62, there's an earnings limit ($22,320 in 2025). If she earns over that, benefits are reduced $1 for every $2 above the limit.

My sister started collecting at 62 last year and she was surprised that her actual deposit was less than what the website said!!! Make sure u account for the tax withholding if u choose that option

I went through this calculation recently. For federal tax withholding, you have options - you can choose to have nothing withheld and pay quarterly estimated taxes, or you can file Form W-4V to request voluntary withholding at 7%, 10%, 12%, or 22% of your monthly benefit. Based on your combined income of around $65,000, you'll likely have somewhere between 50-85% of her benefits subject to federal tax. At your income level, probably closer to 85%. For a $1500 benefit with 10% withholding, she'd receive $1,350 per month. You'll need to decide if that's enough withholding based on your overall tax situation.

dont forget claiming at 62 means she gets a permanently reduced benefit!! her FRA is probably 67 which means shes taking a 30% cut for the rest of her life. has she considered waiting longer???

I've been trying to call SSA for THREE WEEKS to ask similar questions about my own retirement benefits and I just keep getting busy signals or disconnected after waiting on hold for 45+ minutes. It's INFURIATING!!! Has anyone found a way to actually talk to a real person there??

Just thought I'd chime in with one more thing - depending on your total situation, you might want to consider how her claiming now affects survivor benefits down the road. If either of you passes away, the surviving spouse essentially keeps the higher of the two benefit amounts. So if your benefit would be significantly higher than hers, her claiming early might not impact your long-term financial picture as much. Also, if she's turning 62 in October, her first payment would actually come in November (SS pays a month behind). Just something to factor into your budgeting timeline.

just wondering if shes applying online or going to the SSA office? My friend did it online and it was super easy but then my brother had problems with his application and had to go in person

Just to give you a concrete example with numbers to help with your planning: If your combined income is $65,000 (including half of her SS benefits of $9,000), then you'd be well into the range where 85% of her benefits would be taxable. With a $1,500 monthly benefit: - $1,500 × 12 = $18,000 annual SS benefit - 85% of $18,000 = $15,300 taxable amount - At a 12% federal tax bracket, that's roughly $1,836 in taxes on her benefits for the year - Monthly equivalent: about $153/month in taxes So if she chooses 10% withholding ($150/month), she'd receive $1,350 monthly and be very close to covering the tax liability on the benefits.

Don't forget that the $1500 benefit amount on the SSA website assumes you continue working until your FRA with the same income. If she's retiring completely at 62, the actual benefit might be a bit lower than what's estimated. Might be worth checking with SSA directly to get a more accurate figure before you finalize your budget.