I know i will be taxed at 62 of 25% ..if i take it at 62 will the tax drop off at 66.?...i don't want to wait i will lose 60,000 buy the time i reach 66.....thank you
2007-12-10 10:44:20 · 7 answers · asked by braves92@sbcglobal.net 1 in Business & Finance ➔ Taxes ➔ United States
What are you talking about?. What tax at 25%? If you are required to file a return and you recieve social security you must do the social security worksheet to find out how much of it is taxable, can be up to 85%. So if you recieve $10000 in social security you may have to add up to $8500 to your income to be taxed. The acual tax will vary according to you total income.
Are you thinking about the formula for benifets when you have a job and are under age 65? If so contact social security for the computation.
2007-12-10 11:32:34 · answer #1 · answered by Charlie & Angie G 4 · 1⤊ 0⤋
Why wait for the age 66, i think you should not be bothered by the rate to be slapped, instead, inquire on the SSS people to get the comparative results both at 62, and at age 66. My point is, why not take it as early or at 62 at 25%, nevertheless, you have enjoyed your benefits, you will never tell what is stored for you for the next 5 years, so as early it now, enjoy the benefits, and your money now.
2007-12-10 11:45:43 · answer #2 · answered by KRISTOFF 2 · 0⤊ 0⤋
The difference in benefits is a discount, not a tax. If you claim 4 extra years of monthly benefits, each and every month (including the ones after you turn 66) will be discounted. If you have a spouse receiving benefits from your earnings record, their benefit would be reduced by 30%.
From an actuarial point of view, the total $ received is the same. From an individual point of view, do you feel you'll die earlier than average or not? If yes, opt for 62; if no, opt for 66.
2007-12-10 11:41:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋
How long do you expect to live? I took mine at 63. The calculation said that even with the reduction in benefits for taking it early, I had to live to about 80 to even break even dollar wise compared to waiting until 66+ and getting the higher benefit. And that doesn't count the advantage of having the money for those earlier years.
If you are still working, don't take it - you'd end up losing a lot if you still have earned income. But if you plan to retire, then it probably makes sense to take it early.
2007-12-10 13:40:11 · answer #4 · answered by Judy 7 · 0⤊ 1⤋
I took my SS at 62 out of necessity. Husband retired at 63 while I was still working as a subcontractor in medical transcription - paid by the line, no paid holidays, no medical benefits, made ALL my own quarterly social security payments into SS - in other words, no production, no pay and give the government not half but ALL. But I was a very fast typist, proficient in medical terminology, so my pay checks were quite large - as were my quarterly payments. The contractor decided to close their business, so after 16 years of working for them and losing my job at 61, our only source of income was his social security and a small retirement income from the City. Jobs are hard to find for many, even part time, especially for seniors.
2016-04-08 06:55:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Take it at 62.
2007-12-11 14:54:06 · answer #6 · answered by Gary 5 · 0⤊ 1⤋
To give you a solid answer to your question, you have to answer one: When are you going to die?
If everybody in your family checked out early and you are a smoker, take what you can get now and enjoy it while you can. If all four of your grandparents lived to be over 90, wait a while.
2007-12-10 13:24:19 · answer #7 · answered by Anonymous · 1⤊ 1⤋