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Second, if your wife is still working, by claiming her own benefit before her FRA she will be subject to Social Security's 'earnings test' which limits the amount of money she can make without SS taking back some of her benefits. For 2020, the annual earnings limit is $18,240 (changes annually) and SS will take back benefits equal to half of any earnings which exceed that amount. The earnings limit becomes less severe during the year your wife reaches her FRA and goes away entirely after she reaches her FRA, but if she works while collecting early SS benefits the earnings limit could affect her benefits.

Third, your wife's Social Security benefits will become part of your taxable income (assuming you file 'marriedjointly). Taxation of your wife's Social Security benefits will be determined based upon your combined income if you file your taxes as a married couple. At your combined earnings level, up to 85% of your wife’s SS benefits will become part of your taxable income.

I'm not suggesting you not follow your financial planner’s advice; I only want to make sure you're aware of all the factors involved when benefits are claimed early.

Sometimes, a wife claiming at age 62 is a prudent choice as your financial planner has suggested. But sometimes understanding the above factors may lead to a different strategy.

This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website ) or email us at ssadvisor@ amacfoundation.org.

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