Will my Social Security be taxed when husband still works - taking SS at 65 while spouse waits until FRA

Yes, your Social Security benefits will likely be taxable on your joint return. When filing jointly, the IRS looks at your combined income. Up to 85% of your SS benefits may be taxable if your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds $44,000. As for penalties, there are two separate issues: 1. Taking SS before your FRA means a permanent reduction in your monthly benefit amount (about 6.67% per year early) 2. The tax issue you mentioned There's no way to avoid the benefit reduction for claiming early. And with your husband's income, you'll almost certainly have some portion of your benefits subject to income tax.

WAIT UNTIL YOUR OWN FRA!!!! My wife took SS at 63 and I was still working making about $80K and we got HAMMERED on taxes. Not only did she get a reduced benefit forever, but most of it went to taxes anyway. It's a double penalty and the government wins twice. Worst financial decision we ever made. Just my 2 cents.

This is a common question, and the answer depends on your overall financial situation. A few points to consider: 1. Taxation: Your Social Security will likely be partially taxable due to your husband's income. With $92,000 in earnings, you'll exceed the $44,000 threshold for married filing jointly, meaning up to 85% of your benefits could be taxable. 2. Early claim reduction: Taking benefits at 65 instead of your FRA will permanently reduce your monthly benefit by approximately 13.3% if your FRA is 67. 3. Earnings test: Since you're retired, you won't be subject to the earnings test, but your husband's earnings don't affect your benefits. 4. Alternative strategy: Consider whether you might maximize lifetime benefits by having the higher earner delay benefits until age 70 (8% increase per year of delay). Consider meeting with a financial advisor who specializes in Social Security claiming strategies to analyze your specific situation.

My sister had this same problem! She took SS at 64 and her husband kept working. They had to pay taxes on like 85% of her benefits because of their combined income. But she said they still came out ahead because they needed the extra money each month even with the tax hit. Just depends on your situation I guess?

I'm dealing with almost the identical situation! I tried calling SSA for 3 days straight to ask about this exact scenario and kept getting disconnected or waiting for hours. Finally I found Claimyr (claimyr.com) and they got me connected to a real SSA agent in about 15 minutes. The agent confirmed everything the others here are saying - with your husband's income, your SS will be partially taxable. But she also helped me calculate exactly how much we'd pay in taxes vs. taking it later. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU if you're struggling to reach SSA like I was.

tax thing is real but dont 4get medicare premiums 2! if ur filing jointly with his income ur probably in higher IRMAA bracket so monthly medicare part b costs more too

You might want to run the numbers both ways. My husband and I were in a similar situation. What we found was that even with the tax hit and the reduced benefit from claiming early, I still came out ahead by taking SS at 64 because: 1) I got 3 extra years of payments I wouldn't have received otherwise 2) We invested some of that money 3) The break-even point where waiting would have been better was around age 83 in my case So if longevity isn't common in your family, sometimes taking it early still makes sense despite the tax situation.

Just curious - have you looked into spousal benefits at all? My aunt did something where she took a spousal benefit based on her husband's record first, then switched to her own later? Not sure if that still works with the new rules though

Thank you all for the helpful responses! I've learned so much here. I think we need to really look at several things: 1) How much of my benefit would be lost to taxes given our joint income, 2) The permanent reduction for claiming early, 3) The Medicare premium increases mentioned, and 4) That break-even analysis comparing taking benefits now versus waiting. I'll try connecting with SSA using that Claimyr service to get specific numbers for our situation. We might also consult with a financial advisor who specializes in retirement planning. This is much more complicated than I initially thought!

One thing I haven't seen mentioned yet is the possibility of using Roth IRA conversions to manage your tax situation. If you're in a lower tax bracket now (before claiming SS), you might consider converting some traditional IRA/401k funds to Roth accounts. This could help reduce your future required minimum distributions and potentially lower the taxation of your SS benefits down the road. Also, don't forget about state taxes! Some states don't tax Social Security benefits at all, while others follow federal rules. Depending on where you live, this could be another factor in your decision. The timing coordination between spouses is really key here. You might benefit from a "bridge" strategy where you delay SS but use other retirement accounts to cover expenses until a more optimal claiming age.

Great point about Roth conversions and state taxes! I hadn't considered the state tax angle at all. We're in Pennsylvania, which I believe doesn't tax Social Security benefits, so that's actually good news for us. The Roth conversion strategy is interesting too - we do have some traditional IRA funds that we could potentially convert during these lower-income years before I claim SS. That might help reduce our taxable income later when we're both drawing benefits. I'm really starting to see how this decision affects so many other aspects of our retirement planning. The "bridge" strategy you mentioned makes sense too - using other retirement accounts to fill the gap while delaying SS could be worth exploring. Thanks for adding these important considerations to the mix!

I'm in a very similar situation and wanted to share what I learned from a fee-only financial planner who specializes in Social Security. She had me calculate what she called the "total household optimization" - looking at both spouses' benefits together rather than just one person's decision in isolation. In our case, my husband makes about $95K and I was considering claiming at 65. What we discovered was that while my benefits would be taxed heavily due to our joint income, the bigger picture showed we'd still be better off if I waited until my FRA while he continued working. The key insight was that his higher earning record meant maximizing HIS eventual benefit (by potentially delaying until 70) was more important than my earlier, smaller benefit. We also learned about something called "tax diversification" in retirement - having a mix of taxable, tax-free (Roth), and partially taxable (SS) income sources gives you more flexibility to manage your tax brackets in retirement. This might be worth discussing with a professional who can run the numbers for your specific situation. One more tip: if you do decide to claim early, consider having taxes withheld directly from your SS payments rather than owing a big bill at tax time. You can request this when you apply.

As someone who went through this exact decision last year, I wanted to share a few additional considerations that really helped us. First, don't forget about the "do-over" rule - if you claim SS and then change your mind within 12 months, you can withdraw your application, pay back what you received, and restart later (though this is a one-time option). Also, consider the survivor benefit implications. If something happens to your husband, you'd be eligible for the higher of your own benefit or his survivor benefit. If his benefit is much larger, maximizing his benefit by having him delay could provide you with a higher survivor benefit for the rest of your life. One practical tip: create a simple spreadsheet comparing your total household income (including taxes) under different scenarios over 5, 10, and 15-year periods. This helped us visualize the real impact much better than just looking at monthly benefit amounts. Finally, remember that Social Security has cost-of-living adjustments, so those early reduced benefits will still grow with inflation over time. The reduction is permanent, but the actual dollar amount will increase with COLAs. The peace of mind factor is real too - some people sleep better knowing they're receiving benefits now rather than worrying about potential future changes to the system.

I'm a bit overwhelmed by all the great advice here, but I wanted to add one thing that really helped me when I was facing this decision. Consider getting your official Social Security Statement from ssa.gov to see your exact benefit amounts at different claiming ages. This will give you precise numbers rather than estimates. Also, something I learned the hard way - if you're planning to work part-time or do any consulting after claiming early, remember the earnings test applies until you reach FRA. For 2025, if you're under FRA, you can only earn $23,400 without affecting your benefits. Since you mentioned being retired, this might not apply, but it's worth knowing. One last thought: don't underestimate the value of having guaranteed income starting sooner, especially with all the economic uncertainty. While the math might favor waiting, having that security blanket can be worth something too. Just make sure you're making the decision based on your complete financial picture, not just the Social Security piece alone.

I've been following this discussion closely as I'm in a very similar situation - my husband is still working with a good income and I'm considering claiming SS at 65. One thing I wanted to add that hasn't been mentioned is the importance of timing your claim strategically within the tax year. If you decide to claim early, consider when in 2025 you start receiving benefits. Starting in January means a full year of benefits (and taxes), while starting later in the year might help you manage that first year's tax impact better, especially if your husband gets any year-end bonuses or has variable income. Also, I recently learned that the "provisional income" calculation for determining SS taxation includes tax-exempt interest (like municipal bonds) as well. So if you have any muni bond investments, those will still count toward pushing you into higher SS taxation brackets even though they're federally tax-free. The complexity of all these interactions really reinforces what others have said about getting professional help. It's not just about the SS decision - it affects Medicare premiums, tax brackets, state taxes, and even your overall retirement withdrawal strategy. Thanks to everyone who shared their experiences here - it's been incredibly educational!

I want to add something that might help with your decision-making process. Have you considered running a "sensitivity analysis" on your break-even calculations? What I mean is looking at how different assumptions (life expectancy, future COLA increases, potential changes to tax rates, your husband's retirement timeline) affect the optimal claiming strategy. For example, if your husband decides to retire at 65 instead of 67, that dramatically changes your household income picture and the taxation of your SS benefits. Or if Congress makes changes to SS taxation thresholds (which hasn't happened in decades but could), that affects the math too. Also, don't forget about Required Minimum Distributions (RMDs) starting at age 73. If you have significant traditional 401(k) or IRA balances, those RMDs will add to your income and potentially increase SS taxation later. This is another reason why some people benefit from claiming SS earlier - it can help you delay touching retirement accounts and potentially do Roth conversions in lower-tax years. The decision tree gets complex, but the key is identifying which variables matter most for YOUR specific situation and stress-testing your decision against different scenarios. Sometimes the "suboptimal" choice that's more robust across different possibilities is actually the smarter play.

I've been reading through all these incredibly helpful responses and wanted to share my own experience as someone who went through this exact decision two years ago. My situation was nearly identical - I was 65, husband was 63 and still working making about $88K. Here's what I learned after consulting with both a fee-only financial planner and a CPA who specializes in retirement tax planning: **The tax hit is real but manageable:** We ended up paying taxes on about 70% of my SS benefits due to our combined income, but we planned for this by adjusting our withholdings from my husband's paycheck and having taxes withheld directly from my SS payments. **The Medicare surprise:** What caught us off guard was the IRMAA impact mentioned earlier. Our combined income pushed us into a higher Medicare premium bracket, adding about $70/month to my Part B premium. Factor this into your calculations! **Cash flow vs. optimization:** While waiting might have been mathematically optimal, claiming at 65 gave us the flexibility to max out our HSA contributions (since we were still on my husband's high-deductible health plan), pay off our mortgage early, and handle some unexpected home repairs without touching retirement accounts. **The peace of mind factor is huge:** Having that guaranteed $1,800/month coming in (even after taxes) removed so much financial stress. Yes, it's permanently reduced, but it's also guaranteed for life with COLA adjustments. My advice: Get the actual numbers from SSA, run multiple scenarios with a professional, but don't underestimate the value of financial security and peace of mind. The "perfect" mathematical decision isn't always the right one for your life circumstances.

This is such a comprehensive and helpful thread! As someone who's about to face this exact decision in the next year, I really appreciate everyone sharing their real-world experiences and detailed analysis. Emma, your point about the "peace of mind factor" really resonates with me. While I understand the mathematical arguments for waiting, there's definitely something to be said for having that guaranteed income stream, especially given all the economic uncertainty we're seeing. The fact that you were able to use the early SS income to avoid touching retirement accounts for unexpected expenses is a great example of how the "suboptimal" choice can sometimes work out better in practice. One question I have for those who've already made this decision: How did you handle the psychological aspect of knowing you were taking a permanently reduced benefit? I find myself going back and forth on this - some days I think waiting makes sense, other days I worry about policy changes or economic issues and want to claim as soon as possible. Also, for Hannah (the original poster), have you had a chance to get your official SS statement yet? I'd be curious to hear what your actual benefit numbers look like at different claiming ages once you have the precise figures rather than estimates. That might help clarify your decision quite a bit. Thanks again to everyone who contributed to this discussion - it's been incredibly educational!

As someone who works in retirement planning, I wanted to add a few technical considerations that might help with your decision: **Tax planning opportunity:** Since you're currently in a lower tax bracket (without SS income), this might be an ideal time for strategic Roth conversions from traditional retirement accounts. You could potentially convert some funds at lower tax rates now, then when you do claim SS, you'll have less traditional IRA/401k balance generating taxable RMDs later. **Spousal Social Security coordination:** Even though the "claim and switch" strategies are mostly gone, there's still value in coordinating your claiming with your husband's timeline. If his benefit at FRA or age 70 would be significantly higher than yours, maximizing his benefit might be more important for your household's long-term security, especially considering survivor benefits. **Medicare Part B enrollment timing:** Make sure you understand how your SS claiming decision affects Medicare enrollment. If you're not receiving SS benefits, you need to actively enroll in Medicare Part B during your Initial Enrollment Period to avoid late enrollment penalties. **State tax considerations:** You mentioned earlier that you're in Pennsylvania, which is great since PA doesn't tax SS benefits. But also consider that PA doesn't tax retirement account withdrawals either, which gives you more flexibility in managing your overall tax situation. The key is running the numbers for YOUR specific situation rather than relying on general rules of thumb. Each household's optimal strategy can be quite different based on these various factors.

I wanted to share a perspective that might be helpful as you work through this decision. My wife and I faced almost this exact scenario three years ago - she was 65, I was still working with similar income to your husband's situation. One approach that really helped us was creating what our financial advisor called a "decision matrix." We listed all the key factors (tax impact, benefit reduction, cash flow needs, longevity assumptions, etc.) and assigned weights based on what mattered most to us personally. Then we scored different claiming strategies against each factor. What surprised us was that the "mathematically optimal" strategy scored lower overall because we weighted peace of mind and cash flow flexibility more heavily than maximum lifetime benefits. We ended up with her claiming at 66 (her FRA) as a compromise - no permanent reduction, but not waiting until 70 either. A few practical tips from our experience: - We opened a separate savings account just for the taxes on her SS benefits and automatically transfer a portion of each payment there - We timed her claim to start in July, which helped us manage that first year's tax impact since we only had 6 months of benefits to report - The guaranteed income let us be more aggressive with our investment portfolio since we had that stable base The decision felt overwhelming at first, but breaking it down systematically really helped. Whatever you decide, make sure it aligns with your overall retirement goals and risk tolerance, not just the pure math optimization.

This has been such an incredibly valuable discussion to follow! As someone new to this community who's facing a very similar decision in about 18 months, I'm amazed by the depth of knowledge and real-world experience everyone has shared. What really strikes me is how this decision touches so many aspects of retirement planning beyond just Social Security - taxes, Medicare premiums, Roth conversions, RMDs, survivor benefits, and even psychological factors like peace of mind. It's clear there's no one-size-fits-all answer. A few key takeaways I'm noting for my own future decision: - Get the official SS statement for precise numbers rather than estimates - Consider the "total household optimization" approach looking at both spouses' benefits together - Factor in state tax treatment (fortunately I'm also in a state that doesn't tax SS) - Run sensitivity analyses on different scenarios (spouse's actual retirement date, longevity assumptions, etc.) - Don't underestimate the value of guaranteed income and peace of mind For those who've already made this decision, I'm curious - looking back now, what's the one piece of advice you'd give to someone just starting to think through this choice? What do you wish you had known or considered that you didn't initially think about? Hannah, I hope all this feedback helps you feel more confident about whatever decision you make. It sounds like you're approaching this very thoughtfully!

I'm new to this community but facing almost the exact same situation as Hannah - turning 65 next year with a husband who's still working and making good money. Reading through all these responses has been incredibly eye-opening! What I'm realizing is that I initially thought this was just a simple "when to claim Social Security" question, but it's actually about coordinating a complex retirement strategy involving taxes, Medicare, survivor benefits, and so much more. The point about "total household optimization" really hit home - I need to stop thinking about just my individual SS decision and start looking at how both our benefits work together over the long term. And wow, I had no idea about things like IRMAA or how municipal bond interest counts toward SS taxation calculations. I'm definitely going to get my official SS statement and probably consult with a fee-only financial planner who specializes in Social Security before making any decisions. The decision matrix approach Jessica mentioned sounds like a great way to systematically work through all these factors. Thanks to everyone for sharing such detailed, thoughtful responses. This discussion has probably saved me from making a costly mistake by rushing into an early claim without fully understanding all the implications!