My wife wants to start collecting spousal benefits as she never worked. She is 62. I want to continue working. I understand I can no longer file and suspend. Everything I read says I must be COLLECTING Social Security benefits in order for my wife to receive spousal benefits. I do not want to retire yet as I am only 65. So my question is if I continue working and file for Social Security, and I make 65k/ year, when I pay back $1 for every $2 over the maximum earnings (approximately 20k) meaning I will not receive any Social Security payments at this time. Can my wife still receive her spousal benefits, even though I am technically not receiving any Social Security but yet I filed. No one seems to address this question specifically. Thank you.

Hi. No. For any months that your benefits are withheld due to your earnings, your wife's spousal benefits would also be withheld. Withholding of benefits due to the earnings test applies to all benefits paid on the worker's record, including spousal and child benefits.

For example, say Bob files for benefits this year at age 62, and his 62 year old spouse also files for spousal benefits on his account. Bob's full retirement age (FRA) benefit rate would be $2000, but his rate is reduced to $1400 because he's filing at age 62. Bob's wife's full retirement age spousal benefit rate would be $1000, or half of Bob's FRA rate, but since she is also filing at age 62 her rate is reduced to $650. Bob is still working and will earn $62,240 in 2023.

The earnings test would require that $1 of the benefits payable from Bob's account be withheld for each $2 that he earns in excess of $21,240 this year. That would require withholding a total of $20,500 (i.e. ($62,240-$21,240)/2) in benefits. Bob and his wife's monthly benefits total $2,050 (i.e. $1400 + $650), so based on Bob's 2023 earnings both his and his wife's benefits would need to be withheld for 10 months (i.e. $20,500/$2050) before any benefits could be paid to either of them for the current year.

It sounds like you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your various options so that you can determine your best strategy for maximizing benefits for you and your wife.

Best, Jerry