I have been reflecting on the lifetime of taxes as I contemplate SS and send off a check to the IRS.

The early years when I paid no taxes, not because I was wealthy but because I made and paid so little, I got it all back at the end of the year with the standard deductions for family. Recalling this, it brought the question to mind, “Would that figure into any SS calculations if I start to draw it? Guess I should start opening the mail for the SS office when it comes. lol

It's based on how much a year you get. They are doing more stuff on their web site now instead of sending snail mail. I suggest making an account on their web site. I started collecting at 62, I'll be 67 in about a month. I owed the feds for the first time ever this year. I got to increase my W-4 amount to fix that. I'm not an expert at this stuff so I have to do more research. No agency makes things easy for us seniors that's for sure.

The amount you've paid in in your lifetime reflects how much you will get when you start drawing. Some elderly women who were stay at home Moms get minimum while those who made good money and paid in generously will draw more. I think.

If you got a w-2 the employer paid half of your FiCA tax that you never see. The self employment tax is you paying all of it.

That wasn’t much. lol

I got SS credits when I was in college tutoring Spanish..I got maybe 3 hrs work in that lol

Not that many years ago they would send you a printed salary/tax history for review. I haven’t seen one in a long time. But you can setup an online account to review the same info. I did have to get help from their office resetting my password due to inactivity. Probably best to occasionally scan info to make sure recent earnings are accurate as they tend to be higher years that are likely to impact what you receive

You get inflation adjusted credit for those early years. But as you get older (and presumably making more money) at some point a better year kicks out a poor one for purpose of calculating your benefits. I think they use your best 35 years.

I know little about it not having paid attention being younger and it so far away. On top of not believing it will be there for me or will be drastically changed. BUT when I was having serious issues with ballance my legs working properly and a struggle to walk with likely MS being the cause and a 4 an later 3 month issue before it wained again for who know how long. I became interested enough to do a 5 min Google search and see how disability worked. if Google is correct they run your best 10 years through a formula to figure out what you would get. You can make an on line account and check but I never bothered going that far keeping my fingers crosses it would not be necessary and not wanting to admit to myself there may come a day I'm reduced to that. Not looking farther keep it from being as real. And for the most part it slacked up and I'm Good, but I get small reminder some times when my legs are heavy or off balance or possiblely can't remember thinkd I should.


I Expect it's similar for when you retire. How much you paid in for x # of years - what the politicians stole = what you receive.

That's true. Your monthly amount when you start to draw will depend on the amount you've paid in and your age when you start to draw. I started drawing at age 67 which would be the best financial advantage for my particular situation.

^^^^^this

You are required to have a certain amount of "periods", or "credits", before qualifying, as well. A stay at home mom, a person working for cash, or any other "gig" that doesnn't accrue enough credits that pay into social security, (which are actually fiscal quarters of earned income), will not get social security at any age.

I am sure there are others but I can remember when you could also deduct SS from you taxes owed

"The minimum Social Security retirement benefit is approximately $52 a month if you have a minimum of 11 years of work history. On the other hand, the maximum Social Security benefit is pretty significant. It is $5,108 per month in 2025."

Keith

I received SSDisability for about six years before retirement. I planned to wait until age 70 to begin drawing on my earnings history, but the disability pay switched to retirement pay automatically at age 65. Wife waited until 70. Her check is larger than mine now.

Disability pay was tax free but the retirement pay is taxable. When I started my disability pay, my teen aged daughter received funds as well until she reached 18.

Because of a capital gain on an LLC sale, my Medicare premium and the wife’s premium each jumped to $591 per month. ouch! Got another year until it resets.

Social Security benefits are calculated based on your lifetime earnings, indexed to reflect changes in average wages, and the age you choose to start receiving benefits, with a formula that considers your highest 35 years of earnings. What worked best for me, I'm never going to stop earing wages or self-employment income, was to start collecting at age 66. That age allowed me to earn unlimited wages without effecting my SS benefit. This age changes based on the year you were born. The longer you wait the bigger the check. But, consider this: if you can collect $35,000 a year when you start you will not have the $35,000 if you wait. In short if I would have waited until age 70 I would have missed $140,000. Yes, my benefit would be bigger at age 70, but it would take many years to make up the $140,000 I missed. Open an account @ https://www.ssa.gov/admin/error500.htm You can get all of the correct information, including the amount you earned and paid in every year you paid into SS. If you were born in the month of October you can get an extra month's benefit if you sign up a month early. Yes, that is correct October born can get the first benefit a month earlier then everyone else.

One more thing, if you continue to work after paying in for 35 years. You will probably be earning more than you were earning 35 years ago. They use your highest 35 years of earning to calculate your benefit.

I believe you need to have 40 credits to qualify for a work related stipened. Also there are bend points that are used to calculate your stipened. They have probably changed now with inflation and the raising of the taxable income that is used to calculate SSI earnings. You get more credit for the lower income levels up to the bend point and then somewhat less for the 2nd income level and some what less for the 3rd level. This is a way of helping out those with lower incomes have higher retirement or disability stipends. My wife had minimal credits to qualify and we took her minimum stipened when she reached 62. I worked and waited ulntil I was 66 years old and then she got a bump up as well being married to a SSI recipient..

Bryce

I thought I read something about spouse benefits where thay can get half of what you get when you retire ? But again it's not I have looked into and probably should.

Lots of things good to know like I can contribute to my wife's Roth even though she has no earned income. I just assumed she would have had to have earned income. Found that out last year and started hammering on it.

I should definitely get educated on ss but it's likely to change before I get there.

My wife did not work enough quarters (for others) to qualify for benefits but she does get half of what I would have received at my full retirement age even though i waited some. If I croak before she does she will no longer get half, she will get my whole SS monthly benefit.

Also, if my ex wife would have been a big wage earner (and we were together at least 10 years) I could have opted to take half her SS benefit instead of my own if it was more.

There's got to be a better way to protect old people, who can no longer work, who don't have family, who will help them.

Keith