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Social Security Claiming: New Coverage Warns Workers on Taxes, Reaffirms the Case to Delay

Higher earners who claim before full retirement age face benefit cuts under the earnings test.

Overview

  • Claiming while still working can push more of your check into federal income tax because the IRS counts your wages, half your benefit and some nontaxable interest as combined income.
  • Before full retirement age, the Social Security earnings test in 2026 with a $24,480 limit cuts $1 from benefits for every $2 you earn above that cap.
  • Benefits can start at 62, reach 100% at a full retirement age around 66 to 67, and grow about 8% a year until age 70 when the monthly amount hits its maximum.
  • For married couples, a higher-earning spouse who delays can raise the survivor benefit the other would receive.
  • Planners often advise using savings in your 60s to bridge income so you can wait to claim and lock in larger, inflation-adjusted checks for life.