This whole thread has been incredibly helpful as someone who's completely new to Social Security benefits! I just started receiving SSDI a few months ago and honestly would have been terrified if I got an unexpected deposit like this. It's amazing how common these mystery payments seem to be based on everyone's experiences here. The fact that the SSA does all these background recalculations and adjustments but provides little to no upfront communication about them seems like such a major oversight in their system. I'm definitely saving this thread for future reference and will remember the key advice: document everything, call to verify before spending, and consider visiting a local office if phone wait times are impossible. Thanks to everyone for sharing their real experiences - it makes navigating this complex system feel much less intimidating!

As someone brand new to this community and Social Security benefits, I can't thank everyone enough for sharing their experiences with these mystery deposits! I literally just applied for benefits last week and had no idea these surprise adjustments were even a thing. Reading through everyone's stories - especially how @Connor Murphy's situation resolved with a legitimate retroactive adjustment - has been incredibly educational. It's both reassuring and frustrating to learn that these payments are routine but so poorly communicated by the SSA. I'm definitely bookmarking this thread and will remember the key advice: document everything, call to verify, and don't panic! This community seems like such a valuable resource for navigating what can be a really confusing system.

As someone who just went through this process myself, I wanted to add one more perspective that might be helpful. My wife's FRA was also January (2025), and we discovered that the Social Security Administration actually recommends applying about 3 months BEFORE you want your benefits to start to avoid any processing delays. So for January 2026 benefits, definitely submit that application by October 2025 at the latest. Also, don't forget that once your husband reaches his FRA and starts collecting benefits, he can actually continue working if he wants to without any earnings penalty - unlike if you claim early. This gives you even more flexibility in your retirement planning. The earnings test disappears once you hit FRA, so if he wants to do some part-time work or consulting after "retirement," it won't affect his Social Security payments at all. The bottom line everyone's been telling you is absolutely correct: he can stop working December 31st, 2025 (or any day before that) and still receive 100% of his benefit starting January 2026. The timing of when you stop working and when you claim benefits are two completely separate decisions!

I'm so glad you asked this question because I was literally wondering the same thing about my own situation! My FRA is coming up in a few months and I've been stressing about whether I need to work right up until that exact month. Reading through all these responses has been incredibly enlightening - it sounds like the consensus is that you can stop working well before your FRA month and still get full benefits as long as you wait to file until you reach FRA. The distinction between stopping work and claiming benefits seems to be the key thing that trips everyone up (myself included!). Thanks for posting this and getting such detailed answers from everyone - you've helped more people than just yourself!

Just to summarize everything for others who might have similar questions: Your pension absolutely does NOT count toward the Social Security earnings limit - only wages and self-employment income count. At $16,000/year from part-time work, you're well under the 2025 limit of $22,680. However, do keep in mind a few things: 1) Your pension WILL count toward determining if your SS benefits are taxable (up to 85% can be taxed), 2) Check if WEP/GPO applies to your state pension as that could reduce your SS benefit amount, and 3) Consider the tax withholding options when you apply. Sounds like you're in good shape to start collecting in June!

Great question! I'm approaching 65 myself and had similar concerns. Just wanted to add that it's worth double-checking with SSA about your specific state pension to make sure WEP doesn't apply. Some state employees paid into Social Security for part of their career and some didn't, which affects whether WEP reduces your benefits. You can use the WEP calculator on the SSA website to get an estimate. Also, since you mentioned your FRA is 66 and 10 months, you might want to run the numbers on waiting vs. taking benefits early - the monthly reduction for taking at 65 instead of FRA could be significant over your lifetime. But sounds like you've got the earnings limit part figured out thanks to everyone's great advice!

As a newcomer to this community, I wanted to add my voice to thank everyone for this incredibly comprehensive discussion. I'm just beginning to learn about disability benefits for a family member, and this thread has been more educational than anything I've found through official channels. What really resonates with me is how the seemingly simple question about DAC benefits and inheritance has revealed the complex web of interconnected programs and potential complications. The consistent advice from experienced community members about using Special Needs Trusts - even when not strictly required - makes so much sense given all the stories about Medicaid suspensions and reinstatement challenges. I'm particularly struck by how state-level programs can interpret and apply rules differently than federal programs, creating unexpected complications even when you think you understand the regulations. The practical tips about timing, documentation, and direct estate distributions to trusts are exactly the kind of real-world guidance that newcomers like me need. Thank you to everyone who shared their experiences, both successful strategies and cautionary tales. This community knowledge is invaluable for families trying to navigate these systems while protecting their loved ones' benefits and well-being.

As a newcomer to this community, I wanted to thank everyone for this incredibly thorough and helpful discussion. I'm currently facing a similar situation with my adult child who receives DAC benefits, and I was initially confused about how inheritance might affect them. Reading through all the responses has been incredibly educational - particularly the distinction between DAC/SSDI (which don't have asset limits) versus SSI and other means-tested programs that do. What really struck me are the real-world stories about Medicaid complications and benefit suspensions, even when the primary DAC benefits themselves aren't technically affected. The consistent advice from experienced community members about using Special Needs Trusts as a protective measure makes perfect sense now. It's clear that while the inheritance might not directly impact DAC benefits, the interconnected nature of various support programs means there could be unexpected complications with state Medicaid, food assistance, or other benefits. I'm particularly grateful for the practical tips shared here - like keeping detailed documentation, considering direct estate distribution to trusts, and the importance of acting quickly. These are exactly the kinds of real-world insights that you can't get from government websites alone. For those of us new to navigating this complex system, it's reassuring to see such a supportive community willing to share both successful strategies and cautionary tales. Thank you all for helping newcomers understand not just the technical rules, but the practical realities of protecting our loved ones' benefits!

For anyone still confused about this timing issue, I found the IRS Publication 915 really helpful when I went through this last year. It explains Social Security taxation in detail. The key thing to remember is that you'll get that SSA-1099 form by January 31st, and it will show exactly what you received in 2024 - no guessing needed! Also, if you use tax software like TurboTax or H&R Block, they have specific sections for Social Security benefits that walk you through the calculations. They'll ask for the amount from your SSA-1099 and calculate the taxable portion automatically based on your other income. Makes the whole process much less stressful than trying to figure out those thresholds manually.

I've been using TurboTax Free for years and it definitely handles Social Security taxation in the basic version! You don't need to upgrade to premium just for SS benefits. The software will import your SSA-1099 information and automatically calculate whether any of your benefits are taxable based on your total income. It walks you through it step by step with plain English explanations, which is so much easier than trying to decode IRS publications. H&R Block Free also handles SS benefits in their basic version. The main things that usually require upgrading are if you itemize deductions, have rental property, or run a business - but for straightforward retirement income including Social Security, the free versions work great!