theres actually a form you need to get - i think its W4-V or something close to that. You pick the percentage you want taken out. My sister had a heart attack when she got a $4000 tax bill her first year on SS!! dont let that happen to you!!

I'm still confused about how they tax Social Security in the first place. I thought we already paid taxes on our earnings before paying into the system?? So isn't this double taxation?? And with these new tax brackets I'm hearing about for 2025, will that change how much of my benefits are taxed? Sorry to hijack your thread but this whole system is so confusing.

To address your follow-up question - yes, the WEP reduction will apply to all retroactive payments. And you absolutely need to specifically request retroactive benefits when you apply - they don't automatically give you retroactive benefits even if you're eligible. Regarding the 6 vs. 12 months confusion: The law allows up to 12 months retroactive for retirement and spousal benefits when you're past FRA. However, spousal benefits cannot begin before your spouse started receiving their benefits. So if your wife only started her benefits 6 months ago (which doesn't appear to be your case), that would limit your spousal retroactive period. Given that your wife has been collecting for 3 years, you should be eligible for the full 12 months retroactive on both benefits.

watch out for taxes too!! my friend got a big retroactive payment and it pushed him into a higher tax bracket that year and he wasnt ready for the big tax bill!!

has anyone else noticed that the SSA website says different things about WEP than what the reps tell u on the phone???

Thank you all for the helpful responses! I feel much better knowing that WEP won't affect me until I actually start receiving my pension payments. I'm definitely going to keep my SS benefits in that separate account just to be safe. I'll make sure to contact SSA as soon as I start receiving my STRS pension so there are no surprises. Thanks again for clearing this up!

One thing nobody's mentioned - if you're earning enough to have to pay back benefits, you might want to consider whether it makes sense to just suspend your benefits until you reach FRA. I did that when I went back to work, and it saved me the hassle of paying back benefits. Plus, for each month your benefits are suspended, you get a little boost when they restart (they recalculate to remove some of the early retirement reduction).

To address your specific situation more directly: Since your 2023 earnings were from a period when you were still receiving your own retirement benefits (before switching to survivor benefits in September), those earnings could indeed replace a lower year in your 35-year calculation. However, there's an important timing element here. The SSA doesn't apply new earnings to your record until after the employer W-2 forms are processed, typically around September of the following year. So you might not see any change in your record until late 2024, and any increase to your own PIA wouldn't be relevant while you're receiving survivor benefits (unless your own benefit eventually becomes higher).

To address your vacation payout concern: Yes, lump sum vacation pay counts as earnings in the month received, not when earned. However, you could ask your employer if they'd be willing to spread the vacation payout over multiple months instead of one lump sum. Not all employers will do this, but it's worth asking if it helps you stay under the monthly limit. Also, regarding your spouse's SSDI application - if she's approved, you may become eligible for a caregiver spouse benefit once you're both receiving benefits. This is something to discuss with SSA when the time comes.

For caregiver resources check out the Family Caregiver Alliance and your local Area Agency on Aging. They saved my sanity when I was caring for my dad!!