I am 64, turning 65 in March 2022. My FRA is 66.5. I am retiring Dec 31, 2021, (age 64.75) and want to receive my first SS payment in Jan 2022. I have two questions: 1. when I apply for SS, what month should I indicate that I want to start receiving my payments? (Dec 2021 so I get a check in January? Or Jan 2022, and they will understand that is the month I want to receive my first payment.) 2. If I get my first payment in Jan 2022, and because SS is paid 1 month in arrears, when I file my income taxes for 2021, will the Jan 2022 month's payment be considered as earned in income in 2021 and be included in my 2021 income? Or is it considered as 2022 income since it was paid in 2022? Thank you.

Hi. As you state, Social Security pays benefits a month behind. So, In order for you to receive a payment in January 2022 you'd need to a) claim your benefits effective with the month of December 2021, AND b) you'd need to be eligible to be paid for December. The only way that you'd be eligible to be paid for December 2021 is if you either a) earn less than $18,960 in the calendar year of 2021, or b) you earn $1,580 or less in December 2021 (https://www.ssa.gov/benefits/retirement/planner/whileworking.html). Therefore, if you're planning to work through December, your earnings may prevent you from being able to be paid in January unless your earnings are below the above mentioned limits.

If you are able to be paid for December 2021 in January 2022, that payment would be reported as 2022 income for income tax purposes. Before deciding when to claim benefits, you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry