Social Security Retirement and Allowable Income vs. Medicare and Tax Debt

[BudLiensky]

hello all...

I turned 65 this past June; & was really hoping to hold on until age 66 (or even 67) to file for SS (as I believe the benefit goes up to the tune of $105 per year, for every additional year waited). But...I'm still working (as an insurance inspector); & recently, the vendors I sub for have cut my work back in a pretty drastic way. It's becoming harder & harder to pay the rent/bills (almost evicted in SEPT); & I'm attempting to find a solution...so...a few quick questions:

1) If I retire now (age 65)...will the work ceiling (amount I am permitted to make without being penalized) increase when I turn 66?

2) I'm currently being charged $400 per quarter for MEDICARE. Does MEDICARE take that money out of my SS benefit?

3) I'm currently on a payment plan w/ the IRS to pay off back taxes...I send them $105 per month. Will the IRS take that money out of my SS benefit if I'm late?


Bud L

[Taxing Matters]

hello all...

3) I'm currently on a payment plan w/ the IRS to pay off back taxes...I send them $105 per month. Will the IRS take that money out of my SS benefit if I'm late?

If you are late with a payment the IRS may default your installment agreement. If it does that, it will send you a notice that the installment agreement is in default and demand full payment of the balance due. If you do not resolve the matter fairly promptly, it returns to collection status and eventually the IRS may offset or levy against your SS retirement or disability benefits to collect. It cannot levy SSI benefits (a form of welfare).

[Mercy&Grace]

Assuming your Full Retirement Age is 66 if you retire now your monthly benefits will be reduced a certain amount for the rest of your life. Info at the links below should be of help.

Once you are drawing Social Security Retirement Benefits your monthly Medicare Premiums will be deducted from your monthly benefits.

Early or Late Retirement?-
https://www.ssa.gov/oact/quickcalc/early_late.html

What happens if I work and get Social Security retirement benefits?-
https://faq.ssa.gov/link/portal/3401...ement-benefits

[llworking]

hello all...

I turned 65 this past June; & was really hoping to hold on until age 66 (or even 67) to file for SS (as I believe the benefit goes up to the tune of $105 per year, for every additional year waited). But...I'm still working (as an insurance inspector); & recently, the vendors I sub for have cut my work back in a pretty drastic way. It's becoming harder & harder to pay the rent/bills (almost evicted in SEPT); & I'm attempting to find a solution...so...a few quick questions:

1) If I retire now (age 65)...will the work ceiling (amount I am permitted to make without being penalized) increase when I turn 66?

2) I'm currently being charged $400 per quarter for MEDICARE. Does MEDICARE take that money out of my SS benefit?

3) I'm currently on a payment plan w/ the IRS to pay off back taxes...I send them $105 per month. Will the IRS take that money out of my SS benefit if I'm late?


Bud L

If you go to ssa.gov and sign up for a username and password you can find out all kinds of information directly related to your actual SSA account and what you would actually receive at what ages. You can also get exact information as to how much you can earn and at what ages.

The IRS can levy your Social Security benefits if you owe back taxes and have not honored your payment plan. The IRS can also levy all kinds of other things, including the majority of your wages if you do not honor your payment plan. I would suggest that you make honoring your payment plan with the IRS your absolute priority unless you are able to convince them to put you into an uncollectable status for a period of time.

[BudLiensky]

thanx all!...(sorry it took me so long to get back)...

Very helpful answers, all around. I still cant seem to find out anything online as to MEDICARE payments, tho. At present, MEDICARE sends me a bill for $400 per quarter (about $135 per month). If I begin receiving SS benefits, will that amount be deducted from my monthly SS check?

thanx again,


Bud L

[llworking]

thanx all!...(sorry it took me so long to get back)...

Very helpful answers, all around. I still cant seem to find out anything online as to MEDICARE payments, tho. At present, MEDICARE sends me a bill for $400 per quarter (about $135 per month). If I begin receiving SS benefits, will that amount be deducted from my monthly SS check?

thanx again,


Bud L

That question was already answered earlier in the thread but yes, they will take your monthly medicare payments out of your monthly SS benefits.

[RHL]

Depending on your income when you retire, you may qualify for a Medicare cost sharing program. If so, the program will pay your Medicare Part B premiums (the $134.50) and possibly any Medicare copays and deductibles.