Hi Larry: i was born 02/21/52 my wife was born 11/03/55
Question: can I file a restricted application for spousal benefit if my wife continues to work full time and she does not file for social security?( under current rules she would need to return all money to SS because of penalties)
please advice , thank you.

Hi,

You couldn't be paid any spousal benefits unless your wife files for her benefits and her earnings are low enough to permit payment of at least some benefits. Both her benefits and your spousal benefits would be subject to withholding based on Social Security's earnings test (https://www.ssa.gov/planners/retire/whileworking.html) .

For example, say that Mary claims her Social Security retirement benefits effective with January 2019 when she turns age 63. Mary's primary insurance amount (PIA), or full retirement age (FRA) rate would be $2000, but her reduced retirement rate is $1566. Mary's husband Bob hasn't yet claimed his retirement benefits and is already over FRA when Mary files, so he's eligible to claim spousal benefits without being deemed to file for his own retirement benefits since he was born prior to January 2 1954. Bob's spousal rate is $1000, or 50% of Mary's PIA.

However, Mary is still working and will earn $74,092 in 2019, so before any benefits can be paid Social Security must withhold $1 of the benefits payable on Mary's record for each $2 that her 2019 earnings exceed $17640. In Mary's case, that would amount to $28,226 in benefits (i.e. ($74092-$17640)/2). So, Social Security would need to withhold both Mary's retirement benefits and Bob's spousal benefits for 11 months (i.e. ($1566 +$1000) x 11= $28226), or from January though November 2019. However, both Mary and Bob could then be paid benefits for the month of December 2019.

It sounds like you and your wife have numerous possible filing options to consider, so you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully explore and compare your options so that you can choose the best possible strategy for claiming your benefits.

Best, Jerry