Daydreams and Social Security

10/20/2022 – Weekly letter – Daydreams and Social Security


Read about My Daydreams and Social Security

Yep! I am a cougar. And for those that do not know, I am 4 years, 1 month, and 27 days older than my husband, Jeff. But who is counting? Me, that’s who! Just why is this important? I’ll get to that in a moment.

When I was much younger, I always planned on retiring at 60, then it was 65, and now it’s 70. However, I’m not sure when that will happen.

Daydreams and social security. Images of RV, woman looking at water while cruising, log cabin in woords, maps and pictures

Next month I begin collecting social security, and I have told my family and friends that I want to retire. They just laughed at me. 🤣 😂  I have worked since I was sixteen, and I believe it’s time. Then they asked me, “what will I do with my time?” Truthfully, I don’t know.

My Daydreams and Social Security

Traveling, buying a log cabin in Tennessee (yes, it’s a state without an income tax), renting an R.V., and traveling across the county. All are on my (and Jeff’s) bucket list. But wait! Jeff is younger than me and unable to collect the maximum social security. So where will I go without him? Full retirement has been out of my reach for several years. 😫  However, the compromise I could come up with is working from home, bankers’ hours (which is what I have always done), and not working on Fridays. Not too bad!

Now, about that check, I will receive it in a few short weeks… Wahoo!

As you all know, my honey of almost 23 years is a tax guy, an Enrolled Agent, and he recently reminded me that my social security is taxable. That sure was a slap in the head! 🤬

Nevertheless, we will be getting an 8.7% cost of living increase in 2023, which is the highest adjustment in 40 years.

Now let’s talk about the pesky tax on social security. As it stands right now, if your total income is more than $25,000 for an individual or $32,000 for a married couple filing jointly, you must pay federal income taxes on your Social Security benefits. Below those thresholds, your benefits are not taxed.

The portion of your benefits subject to taxation varies with income level. You’ll be taxed (at your marginal tax rate) in the following way:

  • Up to 50 percent of your benefits if your income is $25,000 to $34,000 for an individual or $32,000 to $44,000 for a married couple filing jointly.
  • Up to 85 percent of your benefits if your income is more than $34,000 (individual) or $44,000 (couple).

You can also have federal income taxes withheld from your payment. And your Medicare payment, if you are 65 and over, will be deducted from your monthly check.

Generally, the earliest you can collect retirement benefits is 62, but you can apply once you reach 61 years and nine months. AARP published a good article,, that may answer any other questions you might have.

Contact Jeffrey Schneider, EA, CTRS, ACT-E, for questions regarding your taxability at

Ali “not a happy camper” Schneider
Director of Business Development

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Tax Humor

What is the difference between the I.R.S. and the Mafia?
The Mafia at least gives you protection when you pay.
-Our Mindful Life