Will my husband's Social Security benefits be taxed based on my income while I'm still working?
My husband just started collecting Social Security at 70 after maxing out his delayed retirement credits. I'm 60 and plan to continue working until at least 65, even though my FRA is 67. He's on my employer health insurance plan since it's better coverage than Medicare alone. We're trying to budget for retirement and I'm confused about the tax situation. His monthly benefit is almost at the maximum amount ($4,873), but I've heard they'll tax his Social Security benefits based on our combined income, including my salary. Is this true? If so, what percentage of his benefits will be taxable? My income is around $92,000 annually. Any advice on how to plan for this would be appreciated!
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CosmicCaptain
Yes, this is absolutely true. Social Security taxation is based on your combined income as a married couple filing jointly. The formula uses what's called "combined income" (adjusted gross income + nontaxable interest + 1/2 of SS benefits). For married couples filing jointly: - If combined income is between $32,000-$44,000, up to 50% of benefits are taxable - If combined income exceeds $44,000, up to 85% of benefits may be taxable With your income at $92,000 plus his SS benefits, you'll definitely be in the 85% taxation bracket. This doesn't mean 85% tax rate - it means 85% of his SS benefits will be added to your taxable income, then taxed at your ordinary income tax rate.
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Amara Oluwaseyi
•Thank you for explaining! So we'd owe taxes on 85% of his SS benefits at our regular tax rate? That's going to be a significant chunk of his benefit. Is there anything we can do to reduce this tax burden while I'm still working?
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Giovanni Rossi
My mom went thru this EXACT thing!! Dad retired and mom kept working and yeah they got hit with taxes on his SS. Basically the government wants to take back some of what they give out if u have other income. Kinda stinks but that's how it works
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Amara Oluwaseyi
•That's frustrating to hear, but good to know we're not alone in this situation. Did your parents find any strategies that helped reduce the tax impact?
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Fatima Al-Maktoum
The taxation of Social Security is completely RIDICULOUS!! The money was already taxed when we earned it, then they tax it AGAIN when we finally get benefits. It's double taxation plain and simple. And now they're using YOUR income to tax HIS benefits even MORE??? The whole system is designed to punish people who saved and worked hard. My husband and I went through this exact nightmare last year when I was still working and he was collecting. I ended up cutting back my hours just to reduce our tax bill because it was barely worth working!!!!
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Dylan Mitchell
•I feel your pain! The system definitely penalizes couples with different retirement dates. But reducing work hours isn't always the best financial decision either... sometimes paying the extra tax still leaves you ahead vs. cutting income.
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Sofia Gutierrez
You might want to consider increasing your pre-tax retirement contributions while you're still working. Contributing more to your 401(k) or similar account will reduce your AGI, which could potentially lower the amount of your husband's SS benefits subject to taxation. Also look into whether you can contribute to an HSA if you have an eligible health plan. These strategies won't eliminate the taxation completely with your income level, but they might help reduce it somewhat.
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Amara Oluwaseyi
•That's a great idea! I hadn't thought about increasing my 401(k) contributions. I'm currently putting in 10% but could probably go up to 15% or more, especially since I'm in my 60s and can make catch-up contributions. I'll check if we're eligible for an HSA too.
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Dmitry Petrov
wait im confused... does this mean when I retire next yr my wifes income will mess up my SS check? shes 58 and im 66 so were in kind of the same boat as u.
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CosmicCaptain
•It won't reduce your actual SS benefit amount, but yes, her income will likely cause a portion of your benefits to be taxable if you file jointly. If your combined income exceeds the thresholds I mentioned above, you'll pay income tax on 50% or 85% of your SS benefits. You might want to run some tax projections with and without her income to understand the impact.
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StarSurfer
When I retired and my wife kept working, we ran into the same problem with taxes on my Social Security. After struggling to get through to anyone at SSA for tax advice, I found this service called Claimyr (claimyr.com) that got me connected to a live SSA agent in under 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent couldn't give tax advice but did confirm how the income thresholds work and directed me to some resources. Worth checking out if you need to speak with someone at SSA directly. Saved me hours of frustration and hold music!
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Amara Oluwaseyi
•Thanks for the suggestion! I've been trying to call SSA to get some clarification on how they calculate the taxable portion, but can never get through. I'll check out that service - getting through in under 10 minutes sounds amazing compared to the hours I've wasted on hold!
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Dylan Mitchell
OP, you might want to talk to a tax professional who specializes in retirement planning. There are some strategies like Roth conversions, tax-loss harvesting, and timing of income recognition that could help your situation. I'm in almost the exact same boat (husband retired, I'm still working), and we found that some smart tax planning has saved us thousands.
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Giovanni Rossi
•Roth conversions only help if you already have traditional IRA money right? Not everyone has that. My parents just had to suck it up and pay the extra taxes when mom was working
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Dylan Mitchell
•You're right - Roth conversions only help if you have traditional IRA/401k assets. But there are other strategies too. The main point is that good tax planning can make a significant difference, and the right approach depends on your specific financial situation.
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CosmicCaptain
One more thing to consider - if your husband's benefit is close to the maximum ($4,873/month), that means he had substantial earnings during his career. Be sure to explore any potential impacts from the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO) if either of you worked in jobs not covered by Social Security (like certain government positions). These provisions can significantly reduce benefits and often catch people by surprise.
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Amara Oluwaseyi
•Thankfully, we both worked in private sector jobs covered by Social Security our entire careers, so WEP and GPO don't apply to us. But that's definitely something others should be aware of - I've heard horror stories about people counting on certain benefit amounts only to be shocked when they're reduced due to these provisions.
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Dmitry Petrov
This happened to my brother and sister-in-law too. You know what they did? They filed taxes separately for a few years until she retired. Might be worth looking into.
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CosmicCaptain
•Filing separately can work in some cases, but often ends up costing more in overall taxes due to losing other tax benefits available to joint filers. For 2025, married filing separately still subjects SS benefits to taxation if income exceeds just $0 (vs. $32,000 for joint filers). Plus you lose many deductions and credits. Always run the numbers both ways before deciding.
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Amara Oluwaseyi
Thank you all for the helpful advice! I've increased my 401(k) contributions to the maximum allowed with catch-up provisions to reduce our AGI, and we've scheduled a meeting with a tax professional to explore all our options. I also used Claimyr to speak with an SSA representative who confirmed everything you all mentioned about the taxation thresholds. While it's frustrating that so much of my husband's benefit will be taxed while I'm working, at least now we can budget accordingly and explore strategies to minimize the impact. I appreciate all your insights!
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