Diamond Member Pelican Press 0 Posted May 20, 2025 Diamond Member Share Posted May 20, 2025 This is the hidden content, please Sign In or Sign Up How Much You Really Get With the Maximum Benefit When trying to organize your finances or attempt This is the hidden content, please Sign In or Sign Up in general, you’re likely going to be factoring in your benefits from Social Security to help you handle some of your expenses. According to the Social Security Administration (SSA), the maximum benefit you could earn if you are ready to start claiming may vary, as it depends on the age you start collecting benefits. Advertisement: High Yield Savings Offers Powered by Money.com – Yahoo may earn commission from the links above. Find Out: This is the hidden content, please Sign In or Sign Up Learn More: This is the hidden content, please Sign In or Sign Up For example, if you wait until age 70, the maximum monthly benefit is $5,108, which would be the most you can earn, but if you start collecting at full retirement age, which is between 66 and 67, the maximum benefit is $4,018. If you want an early retirement, the maximum benefit for retiring at age 62 is $2,831. Currently, the average monthly retirement benefit for Social Security recipients is about $1,999.97 for retired workers and $1,948.17 for all retirement beneficiaries. However, This is the hidden content, please Sign In or Sign Up ? To better This is the hidden content, please Sign In or Sign Up , it’s important to know the taxable wage cap for earning the maximum Social Security benefit. In 2025, to receive the maximum benefit, there are several requirements you need to fulfill. Firstly, you need a history of consistently earning at least the annual maximum taxable wage cap of $176,100. To truly get the highest possible amount, you must also delay claiming benefits until age 70. If you do, you would get about $5,108 per month. The taxable wage cap is up from last year, as $168,600 was the salary needed to receive the maximum benefit. The SSA takes your 35 highest-earning years and averages them (adjusted for inflation) to determine your benefit. If, via this calculation, you have paid the taxable maximum over this *******, you may be eligible for the maximum benefit. Read Next: This is the hidden content, please Sign In or Sign Up Social Security income and taxes can be a confusing topic since your tax situation can be fairly straightforward during your working years if you receive your income from one source. When you’re working, you submit your employment income and your various other investment streams when you file your federal taxes to figure out where you stand. When you retire, your income may arrive from multiple sources with different characteristics (a pension plan, real estate holdings, etc.). Story Continues While the benefits you receive from Social Security are taxable at the federal level, your This is the hidden content, please Sign In or Sign Up . According to the SSA, you’ll have to pay federal income taxes on your benefits when you have a significant amount of income in addition to your benefits. For example, if you have self-employment income, dividend income and other taxable income streams, then you may have to pay taxes since you’re likely earning over the threshold. Every January, you should receive a Social Security Benefit Statement (Form SSA-1099) showing you the benefits you received in the prior year. You then have to disclose this Benefit Statement when you work on your federal income tax return. During this process, you’re going to find out whether your benefit will be taxed or not. As of 2025, This is the hidden content, please Sign In or Sign Up . But if you live in one of the following nine states, you will have to pay taxes on your benefits: Colorado Connecticut Minnesota Montana New Mexico Rhode Island Utah Vermont West Virginia Keep in mind that no matter where you live, your Social Security benefits could still be subject to federal taxes depending on factors such as income and tax filing type. So, what happens to your taxes when you qualify for the maximum Social Security income of over $5,000? You’re going to be taxed accordingly when the IRS factors in your combined income. These calculations will depend on how many other income streams you have in your retirement years. If you’re over the limit, then you’ll have to pay taxes on 85% of your benefits from Social Security. This is on top of any additional taxes that you’re going to have to pay on your other income streams, unless, of course, they are eliminated altogether. This is the hidden content, please Sign In or Sign Up contributed to the reporting for this article. More From GOBankingRates This article originally appeared on This is the hidden content, please Sign In or Sign Up : This is the hidden content, please Sign In or Sign Up This is the hidden content, please Sign In or Sign Up #Maximum #Benefit This is the hidden content, please Sign In or Sign Up This is the hidden content, please Sign In or Sign Up 0 Quote Link to comment https://hopzone.eu/forums/topic/254380-how-much-you-really-get-with-the-maximum-benefit/ Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.