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Subject:  Re: social security Date:  4/14/2000  2:16 PM
Author:  telone Number:  3539 of 20788

Pixy writes:

<<Yes, it could depending on the potential excess over the income threshholds for the taxation of benefits. Keep in mind that
many benefits recipients are not aware such taxation is possible. Many discover it only at tax filing time. Obviously, they don't
pay attention to the literature they receive because it's not a secret and is highlighted in many SSA pubs and in the media from
time to time.>>

I agree that the decision of taking it or waiting has to be crefully thought out. I am 66 and can go to the SS trough now while I am still working full time. I really do not need the "extra" money now. However, if I do jump on the SS train, I will go to a higher IRS bracket. In adition, I will lose out on 1040 deductions because my itemized deductions will be sqeezed lower. And I might even be faced with an AMT.
And, as Pixy pointed out in another post, by working, I still would have to pay FICA/SS on the work-earnings, even while collecting SS; and I would NOT be eligible for the 5.5% kicker each year.

I calculated, that, if I wait, (I was planning to work to 68.3 years), I would gain the 5.5% kicker each year provided to those born in 1934. In addition, waiting, as a further bonus, would give my wife an additional $3600 per year (50% of my SS times 80% [she retired at 62 on her earnings]) once I "finally" retired and got on the SS bandwagon.

I am leaning in the direction of waiting.
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