I turned 62 in June of 2017, we have a 14 year old at home, my wife says my daughter is eligible for SS benefits but from what I read on line due to our / my income she is not eligible, could you please clarify? (if it matters, I plan to work until I am 67 years old). Thank you very much.

Hi,

It sounds like you, your daughter and your wife could potentially qualify for benefits on your record, but $1 of the total amount payable would be withheld for each $2 that you earn in excess of $16920 this year, and $17040 next year.

So, let's say for example that John files for retirement benefits in January 2018 at age 62 & 7 months. John's full retirement age rate (PIA) is $2000, but his reduced rate effective January 2018 is $1541. John has a 14 year old who qualifies for child benefits on his record, and a wife who qualifies for spousal benefits on the basis of having a child under age 16 in her care. The maximum amount of auxiliary benefits that can be paid on John's record is $1500, which is split evenly between his wife & child.

So, a total of $3041 ($1541 + $750 +$750) is payable per month on John's record effective January 2018. However, John is still working and plans to earn $77860 in 2018. Therefore, $30,410 (i.e. $1 for each $2 earned in excess of $17040) must be withheld before any benefits could be paid on John's record. As a result, Social Security wouldn't pay John or his wife or child for the first 10 months of 2018. But, full benefits could then be paid for November and December of 2018 since withholding of 10 months of their benefits would cover the amount required to be withheld based on John's 2018 earnings (i.e. $3041 x 10 = $30410).

Of course, in the above example if John earns more than $90,024 in 2018 no benefits would be payable to anyone in the family for 2018. So, your best strategy depends largely on your potential benefit rates and expected earnings. Our maximization software can calculate your and your family's potential benefit rates, and determine the effect that your expected earnings would have on your benefit payments.

Best, Jerry