Dear Larry,

I am 63 in August. Divorce was final March 22,2016. I am able to collect off my ex after March 22, 2018. I will be 64 1/2. That would be about $1300.00 per month. Then when I turn 66 I plan to collect my own, that would be $1558.00 per month.
I receive $2000.00 per month in alimony. What are the social security tax ramifications and or percentage of SSI that would be taxed?

Thank you, Lisa

Dear Lisa,

If you ex has filed for his retirement benefit, you can collect a reduced divorced spousal benefit starting immediately, i.e., you don't have to be divorced for two years. (Your ex has to be at least 62 in either case.) But if you file for your divorced spousal benefit before full retirement age (66 in your case), you will be deemed to be filing for your own retirement benefit as well. In this case, you'll receive a reduced retirement benefit and a reduced excess divorced spousal benefit, which may be zero.

In short, you cannot do what you plan to do. Your best strategy is probably to wait till 66 to take just for divorced spousal benefit and then wait till 70 to take your own retirement benefit. Please run our software as what's best will depend on your maximum age of life.

Re taxes, if your alimony is taxable, which I presume it is, you will likely have to pay taxes on 50 percent of your Social Security benefits.

best, Larry