Social Security benefits are sent to millions of Americans every month, and they can get complicated for those new to them.
There are a few things to keep in mind when it comes to Social Security benefits.
The Social Security Administration runs the program and uses a specific formula to determine what your benefits will amount to.
You’re legally able to start collecting benefits at age 62, but the amount you get will drop each early year you collect.
You’ll get the full amount at your full retirement age between 66 and 67, depending on your year of birth.
If you can wait until age 70, your benefits increase each year between your FRA and age 70.
Here are a few things to keep in mind when it comes to Social Security
Your benefits may be subject to tax.
If you collect benefits that are 100% or above (ages FRA-70) you might end up paying income tax on them.
If you have another source of income and surpass a threshold, you may pay taxes on up to 85% of your taxes.
Your marital status will impact what your benefits are.
This is especially true if your spouse has a source of income.
In this case your benefits are for a couple, and are determined using your combined income.
Finally, you might be able to suspend your benefits if you decide you need to.
You may start collecting at age 62, or your FRA, or you can wait until you are 70.
This will earn you delayed retirement credits so when you do finally retire by age 70, the benefits are higher.
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