A Social Security spousal rule that was around for decades ended this year for the last eligible retirees — those who turned 70 on Jan. 1, 2024. The rule allowed recipients to switch between their benefits and their spouses' to receive the maximum amount.
The maximum spousal benefit is 50% of your spouse's retirement benefit at their FRA. If the maximum spousal benefit is greater than your retirement benefit at your FRA, you may be eligible for a spousal benefit.
The spousal benefit can be as much as half of the worker's "primary insurance amount," depending on the spouse's age at retirement. If the spouse begins receiving benefits before "normal (or full) retirement age," the spouse will receive a reduced benefit.
If you've reached your full retirement age, you can receive 100% of your spouse's disability benefits. If you're between 50 and 59 and you also have a disability, you can receive 71.5% percent of your spouse's benefits.
The COLA was 3.2% in 2024. Nearly 68 million Social Security beneficiaries will see a 2.5% COLA beginning in January 2025. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2024.
Every year, the government sets a limit on the amount of your earnings that can be taxed for Social Security. That limit in 2025 is $176,100.
To get the most out of your benefit you need to plan carefully, however, since you could owe income taxes on as much as 85% of your Social Security. $45,864: Maximum Social Security benefit for someone retiring at full retirement age in 2024. 85%: Maximum portion of Social Security benefits subject to income taxes.
Social Security below full retirement age
If you are younger than the full retirement age, which is 67 for most, the annual earnings cap is $22,320 for 2024. After that, 50% of anything you earn over the cap will be held back from your Social Security.
The first exception, which can be deemed as the Social Security spousal benefits loophole, works where an individual who remarries at 60 or later may still be entitled to Social Security survivors' benefits if the second marriage ends before the death of the first spouse.
If you claim your regular Social Security benefit before your higher-earning spouse does, you have the option of switching to spousal benefits at a later date when (or after) your spouse decides to file.
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
The maximum Social Security spousal benefit is equal to 50% of a worker's Social Security payment at full retirement age. Early retirement reduces benefits for workers and their spouses and ex-spouses. Understanding your eligibility can help you maximize this benefit.
If the annuitant withdraws funds from the Spousal RRSP within 3 years of a contribution, that amount will be added to the contributor's taxable income in the year of the withdrawal.
The current spouse benefit is based on 50 percent of the PIA of the other spouse. Reduce this percent each year by 1 percentage point beginning with newly eligible spouses in 2025, until the percent reaches 33 in 2041.
Maximum social security tax.
The maximum social security tax employees and employers will each pay in 2025 is $10,918.20, an increase of $465 from $10,453.20 in 2024.
If your spouse dies, do you get both Social Security benefits? You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement. If you qualify for both survivor and retirement benefits, you will receive whichever amount is higher.
At what age is Social Security no longer taxable? Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
Latest COLA
Social Security benefits will increase by 2.5 percent beginning with the December 2024 benefits, which are payable in January 2025. Federal SSI payment levels will also increase by 2.5 percent effective for payments made for January 2025.
You report the taxable portion of your Social Security benefits on line 6b of Form 1040 or Form 1040-SR. Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.
The 2024 and 2025 limit for joint filers is $32,000. However, if you're married and file separately, you'll likely have to pay taxes on your Social Security income.
To qualify to get $144 added back to your Social Security check, you can enroll in a Medicare Advantage plan that offers a Part B premium reduction or giveback benefit.