Social Security benefits and working after retirement

[seniorjudge]

Yes, I really have friends and yes, these are real questions. I told my friends that I had no clue about taxes or Social Security so I would give y’all a chance to answer some queries.

Husband is 60 years old and is collecting a $47K retirement. Wife is 59 years old and is making about $80K per year working at a business that she and husband own.

Questions:

(1) If husband wants to start collecting his social security at age 62, does the retirement count as income (meaning his social security benefits will be cut down)?

(2) Would it be better if the husband became the wage earner when wife turns 62 so that she is getting no income and full social security?

(Frankly, I didn’t even know what questions to ask these folks. If I am not seeing something, please let me know. And thanks!)

[seniorjudge]

bump..........

[aaron]

Does this help?

If you get a pension from work where you paid Social Security taxes, that pension will not affect your Social Security benefits. However, if you get a pension from work that was not covered by Social Security—for example, the federal civil service, some state or local government employment or work in a foreign country—your Social Security benefit may be reduced.

For more information, call Social Security to ask for the publications: Government Pension Offset—for government workers who may be eligible for Social Security benefits on the earnings record of a husband or wife (Publication No. 05-10007); and Windfall Elimination Provision—for people who worked in another country or government workers who also are eligible for their own Social Security benefits (Publication No. 05-10045).