What financial planners wish you knew about Social Security

The logo of the US Social Security Administration is seen outside a Social Security building, November 5, 2020, in Burbank, California. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

“It’s just important to be informed that this penalty exists,” says David Haas, a certified financial planner in Franklin Lakes, New Jersey. “And you’re supposed to report it, which nobody ever does.” The net result of this quirk is that you might get a bill from Social Security for the income it wants back — but not for a few years.

According to the SSA, federal taxes come into play if the combination of 50% of your Social Security benefit plus any other earned income is more than $25,000 a year if you’re filing individually, or $32,000 a year if you’re filing jointly. To have taxes withheld, submit“The survivorship is really just collecting the higher benefit, but that means you have to forgo the lower benefit,” Bunio says. “There is going to be a loss of income.

“Business owners say, ‘Reduce my tax, I pay too much in taxes,’” says Catherine Valega, a CFP in Winchester, Massachusetts. People tend to overvalue the tax break now versus the long-term consequences of a smaller benefit later, she says.Although starting Social Security at age 70 nets you the highest benefit, it’s not the only answer to the when-to-claim question. Like a lot of planning, it depends on your circumstances.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

That security camera and smart doorbell you’re using may have some major security flawsWhen 24-year-old Heather Hines from Southern California was changing into her work clothes last month, she noticed the seven security cameras she owned from Wyze went offline for a short period of time, including the one in her bedroom.
Source: cnnbrk - 🏆 393. / 55 Read more »

Türkiye-Iraq Security Summit to Focus on Security and Military CooperationDeveloping a common understanding in the fight against terrorism will be on the agenda during talks Thursday with Iraq, a Turkish Foreign Ministry spokesperson has said.
Source: trtworld - 🏆 101. / 63 Read more »

UC Berkeley parents hire private security over lack of security on campus amid continue area crimeThe parent group raised $40,000 for six unarmed guards to patrol around the UC Berkley amid concern of rising crime on and around campus.
Source: FoxNews - 🏆 9. / 87 Read more »

Trump flunks test on Social Security basics amid larger debateSteve Benen is a producer for 'The Rachel Maddow Show,' the editor of MaddowBlog and an MSNBC political contributor. He's also the bestselling author of 'The Impostors: How Republicans Quit Governing and Seized American Politics.'
Source: MSNBC - 🏆 469. / 51 Read more »

Analysis Spotlights the Lasting Pain Inflicted by Reagan's Social Security CutsJake Johnson is a senior editor and staff writer for Common Dreams.
Source: commondreams - 🏆 530. / 51 Read more »

BlackRock's Larry Fink sees Social Security crisis, says 65 retirement age 'a bit crazy'The issue of retirement took center stage in Fink's letter to shareholders.
Source: CNBC - 🏆 12. / 72 Read more »