What to Do Before You Claim Social Security

Get the most out of your Social Security benefits by understanding when to claim, how work affects payouts, and what taxes you may owe.

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More than 55 million Americans collect Social Security benefits, according to data from the PEW Research Center. And nearly every working American pays Social Security taxes. This government benefit is a crucial source of income for retirees. And for some, it’s their only source.

But before you start claiming Social Security benefits, it’s important to know a few points in order to make the most out of it. So let’s take a closer look.

Create a My Social Security Account

By creating a My Social Security account, you can complete plenty of important tasks right from your computer or mobile device.

While some may believe that Social Security payments are a flat base for everyone, that’s not the case.

For each recipient, the payment is calculated based on their highest 35 years of earnings. With a my Social Security account, you can view this income. So if there’s a discrepancy, you can challenge it through the Social Security Administration (SSA).

Know When to Claim Social Security

Retirees can claim Social Security at age 62. But it pays to wait. If you claim benefits at your full retirement age or normal retirement age, your benefits will increase. Full retirement age is 66 for those born between 1943 and 1954. And it slowly increases to 67 for those born in 1960 or after. But if you claim when you can begin at age 62, your benefits can drop by up to 30 percent.

In addition, you should know that you can actually wait until age 70 to claim benefits. That’s when you can claim your highest amount. Of course, waiting may not be a feasible option for some. But it’s important to consider waiting, as this could increase your benefit for the rest of your life.

You can also see how collecting at different ages would impact your benefit amount via your my Social Security account.

Know About How Working Can Impact Your Benefits

Even at retirement, you may want to pick up a side gig or part-time job to earn some extra income and kill the time.

But working while receiving Social Security benefits could affect how much you earn in benefits.

Some of your monthly benefits would be withheld if you collect when you’re younger than your full retirement age, and your earnings go above certain amounts. Your benefits would increase after you reach full retirement age to cover the months when your benefits were withheld. But after you reach your full retirement age, you can work and earn as much as you can without impacting your benefit amount.

Know About the Spousal Benefit

A spouse can earn up to 50 percent of what the higher-earning spouse is collecting. However, spousal benefits for the lower-earning spouse would be lowered if benefits are claimed before full retirement age.

Understand How Social Security Is Taxed

You may owe federal income taxes on up to 85 percent of your Social Security benefits. But whether you do largely depends on what the SSA calls your combined income.

Your combined income equals adjusted gross income plus nontaxable interest plus half of Social Security benefits.

If you’re single and your combined income is between $25,000 and $34,000, up to 50 percent of your benefits are taxable. If it’s more than $34,000, up to 80 percent is taxable.

If you’re married filing jointly, and your combined income is between $32,000 and $44,000, up to 50 percent is taxable. If your combined income is more than $44,000, up to 85 percent is taxable.

The Bottom Line

Millions of people rely on Social Security benefits after a lifetime of paying into the system. But it can be an extremely complicated system. And there are some points you should keep in mind.

First, create a My Social Security account. This would make some tasks, such as looking at how your benefits may change depending on when you start claiming, much easier. With that said, it’s important to know that you can receive higher benefits if you wait until you begin collecting. You can start at age 62. But delaying until age 67 or 70 would mean bigger checks.

And you should also be aware of how the spousal benefit works.

Moreover, depending on your income and filing status, you may owe taxes on some of your benefits. So it may help to work with a tax adviser and financial adviser to determine how to approach Social Security benefits based on your unique circumstances.

The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.