Today’s column addresses whether to retroactively file for spousal benefits after FRA, when Social Security benefits can be taxed, the availability of spousal benefits, whether to move to another state to file and filing after multiple, including common law, marriages. Larry Kotlikoff is the founder and president of Economic Security Planning, a company that markets Maximize My Social Security, a Social Security benefits calculator referred to in this post.
See more Ask Larry answers here.
Ask Larry about Social Security:
Should I Claim Retroactive Social Security Spousal Benefits?
Hi Larry, My husband, now 68, claimed his Social Security retirement benefit at 66. I’m 67, retired last year, and I have decided to file a restricted application to claim a spousal benefit now and switch to my own higher retirement benefit at 70. Is there any disadvantage for me to claim a six month retroactive benefit for my spousal benefit? I have read some of your guidance from earlier this year to use caution with a retroactive claim for a person’s own retirement benefit, but is there much risk with a late claim for a spousal benefit? Thanks. Tasha
Hi Tasha, No, if you're currently age 67 your spousal rate would be the same whether you start drawing now or 6 months retroactively. Spousal benefits do not accrue delayed retirement credits if you wait past your full retirement age (FRA) to start drawing them, so it sounds like you'd want to file for spousal benefits ASAP and claim full retroactivity. Best, Larry
Will I Have To Pay Taxes On My Social Security Benefits?
Hi Larry, I estimate my income with Social Security benefits to be about $30,000. Will I pay income taxes on my Social Security benefits? I am single and no dependents. Thanks, Kara
Hi Kara, That probably depends on how much of your $30,000 income comes from Social Security. Half of your Social Security benefits are excluded when determining your combined income for benefit taxation purposes, and if your resulting combined income is below $25,000 then you wouldn't be required to pay federal income taxes on your benefits. Best, Larry
Can My Husband Claim Spousal Benefits At His Full Retirement Age?
Hi Larry, Can my husband claim spousal benefits at FRA? I am 61 and thinking about claiming Social Security retirement benefits next year and possibly working part time for another year or two. My husband is 63, receives a pension from the military and doesn't plan to claim his Social Security retirement benefits until age 70. He works part time and may continue doing this for a couple of more years. Can he claim spousal benefits at his FRA of 66 years and 2 months? Our retirement benefits are almost equal. Thanks, Jesse
Hi Jesse, It doesn't sound like it. You would have to be drawing your retirement benefits in order for your husband to claim spousal benefits, but unless he was born prior to 1/2/1954, he couldn't claim spousal benefits without also being deemed to be filing for his own retirement benefits You and your husband should strongly consider using an expert Social Security benefits calculator as described in other answers to compare your filing options and determine your best overall strategy. Best, Larry
What Is The Best State To Make A Claim?
Hi Larry, I am 68 and am beginning to prepare to retire after filing and suspending. What is the best state to make the claim? I am not sure if waiting an extra year will be the best in the chaos that appears to be growing. Thanks, Oliver
Hi Oliver, Social Security is a federal program, so the state in which you file your claim makes no difference. You won't actually need to file a claim, though, if you've already filed for and suspended your benefits. In that case you simply need to notify Social Security at least one month prior to the month you want to start drawing benefits. Before doing so, you may want to use an expert Social Security benefits calculator, such as my company's software or another highly accurate program. Best, Larry
Can I Get Social Security On My First Husband's Record?
Hi Larry, I am 63 and receiving benefits based on my second husband's record. My first husband, who was my common law husband, has died. Can I file for survivor's benefits based on his record? Thanks, Lynette
Hi Lynette, Possibly. You could only draw benefits on your first husband's record if your benefit rate would be higher than what you're currently getting on your second husband's record, and your marriage would have to have been recognized as legal in a state that you resided in together. Best, Larry
To learn more about your Social Security options, visit Economic Security Planning, Inc
