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Early Social Security situation
11-30-2013, 01:18 PM
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#1
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Confused about dryer sheets
Join Date: Nov 2013
Posts: 6
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Early Social Security situation
Dear New Friends,
When I found your site I was sure it was folks who were "early retirement on social security" and I felt like a buffoon when I realized it was folks who wanted to retire early. Several folks on this website said it was okay to stay and maybe tell what happened with my early social security retirement so here goes.
I am 64 y/o female (a young 64 y/o though : ) and had a full-time permanent position a 4-person office, no benefits. My boss said he was closing the office in November 2012 and did so a month later and while he kept me as an independent contractor he simply did not have any work. I visited our county social security office and called the federal phone number many times seeking help. In Feb. 2013 I applied for early social security benefits and I had to give them an estimate of what I would approximately be making for the year. I had no idea and chose a dollar amt. of 20k and then started putting up flyers everywhere for house cleaning. The tiny business grew and here we are 9 months later and I have made ~27k thus far. With my former boss I have only made 4k as an independent contractor. I have learned alot about independent contractor work, I did get an EIN number and pay quarterly sales and use tax to the state and quarterly federal taxes too on house cleaning and very part-time office work. Last week I called social security and wanted to "withdraw" my application from social security. I was told I had to pay all the monies back which I was aware of but I didn't know it had to be paid back the day your file to Withdraw in a lump sum and that left me out. I wanted a year to pay it back but no go. So, I told them to keep all checks going forward. They agreed and asked how much I would make in 2014 and I thought I'd be positive and said 35k and it was duly noted. Again, they told me if anything in the dollar amt. changes to let them know. In the long run I will be hurt perhaps by not being able to pay back the monies received this year and re-applying at a later date but it's just how it played out. We do not have any options to borrow money. Hubby has 105k in his 401k and he is only able to contribute very little each year, no match.
BUT, in the meantime I have been learning how to be an Amazon affiliate and have a website that should go live in about 2 weeks. My take away has been this:
1. I had no idea about finances my whole live, ever and it's important to learn early.
2. I would advise getting an attorney or a very knowledgeable acct. if you really want to know the entire picture of collecting early retirement benefits. It would be well worth the money to know the intricacies and complicated parts.
3. If you have made a bad decision, simply brush off, get back on board and go for it. Hey, I'm 64 years old, cleaning houses on my hands and knees like a 30-year old, building a website and have not yet given up about the future. Each day is new beginning and I'll just press on.
This forum is wonderful. I am most impressed by how much everyone knows and how young ppl start so early. Wish I knew but that's okay, I'm here and hope to learn from you all. Thanks for having me. Romy
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Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
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11-30-2013, 01:33 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2008
Location: Indialantic FL
Posts: 1,330
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Is the 27k gross or net earnings? Remember you can expense all your cleaning supplies you are purchasing as well as the miles you are driving to clients homes.
__________________
JimnJana
"The four most dangerous words in investing are 'This time it's different.'" - Sir John Templeton
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11-30-2013, 01:36 PM
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#3
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Confused about dryer sheets
Join Date: Nov 2013
Posts: 6
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It's gross. I have all expenses like gas/products/some local ads in papers etc. Thank you, thank you.
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11-30-2013, 01:48 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2013
Posts: 9,358
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Good for you for so quickly bouncing back and being willing to do what it takes to earn a living. Housecleaning is actually probably more healthy for one's body than sitting at a PC all day long. I should do more of it around my own house.
Good luck with your web sites. You sound like a real go getter!
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11-30-2013, 02:01 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Feb 2008
Location: Indialantic FL
Posts: 1,330
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Quote:
Originally Posted by romy
It's gross. I have all expenses like gas/products/some local ads in papers etc. Thank you, thank you.
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IRS page on self employment expenses
Deducting Business Expenses
You probably will come out ahead by using the standard mile rate vs using actual auto expenses. You should be able to knock your self employment income down substantially, just by having good records of your expenses and miles driven.
__________________
JimnJana
"The four most dangerous words in investing are 'This time it's different.'" - Sir John Templeton
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11-30-2013, 02:04 PM
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#6
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Confused about dryer sheets
Join Date: Nov 2013
Posts: 6
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Great, thank you for this link, this will help me a great deal : )
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11-30-2013, 02:30 PM
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#7
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Gone but not forgotten
Join Date: Jul 2012
Location: Peru
Posts: 6,335
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Hi...
Love your spirit and will guess that you'll do fine in whatever you choose to do..
Am a little curious as to how much continuing SS was going to affect your taxes.
Since I'm a little long in the tooth, I don't know if the SBA still maintains local offices. In "my day", it was a great resource, with many, volunteers who were willing to give help to start-ups. Personal attention, with lots of knowledge and no cost. My time my own business was quite short... 3 years, but during that time, was amazed on the available deductions... home office, utilities, maintenance, vehicle expenses, percent of total home expenses based on s.f. and stuff like personal clothing necessary to the business... all legal.
Hang in here... not just for investing, but for living ... no matter the income.
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11-30-2013, 02:35 PM
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#8
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,774
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I don't think you did anything wrong with the SS, Romy--if you could have put your hands on the total amount you received from SS to pay it back, you probably would not have needed to take it a little early! You did and are doing what you needed to do and it will all work out for you. Good decisions on your part. Glad you are hanging around.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
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11-30-2013, 03:11 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Apr 2012
Posts: 2,929
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Quote:
Originally Posted by romy
Dear New Friends,
....If you have made a bad decision, simply brush off, get back on board and go for it. Hey, I'm 64 years old, cleaning houses on my hands and knees like a 30-year old, building a website and have not yet given up about the future. Each day is new beginning and I'll just press on.....
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Hi Romy,
Welcome to the forum. With your positive attitude and work ethic you are going to do just fine. I am extremely impressed with your never-say-die attitude, and your willingness to do whatever it takes to improve your situation. You go, girl!
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11-30-2013, 03:28 PM
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#10
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Recycles dryer sheets
Join Date: Jul 2012
Posts: 103
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Quote:
Originally Posted by Calico
Hi Romy,
Welcome to the forum. With your postive attitude and work ethic you are going to do just fine. I am extremely impressed with your never-say-die attitude, and your willingness to do whatever it takes to improve your situation. You go, girl!
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+1. Amen! God bless, Romy...
__________________
Jeff
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11-30-2013, 05:53 PM
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#11
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Thinks s/he gets paid by the post
Join Date: May 2011
Location: South Eastern USA
Posts: 1,068
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Thanks for staying Romy!
__________________
All that glitters is not gold. -G. Chaucer, W. Shakespeare
All that is gold does not glitter. -J.R.R. Tolkien
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12-11-2013, 11:06 AM
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#12
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gone traveling
Join Date: Feb 2008
Posts: 510
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I just loved your attitude...wow.
What's an Amazon affiliate? Is this like earning extra passive or active income?
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12-11-2013, 12:18 PM
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#13
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Full time employment: Posting here.
Join Date: Mar 2008
Posts: 968
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Keep in mind that you will also pay self employment taxes on your own businesses- just over 12% of profit PLUS federal and state. If you have not done so, you may want to calculate and plan for that....
But good for you! I hope I am that energetic at that age!
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12-12-2013, 05:06 PM
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#14
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Recycles dryer sheets
Join Date: Sep 2006
Location: clearwater
Posts: 439
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I thought you could suspend your social security if you went back to work. ( this would mean stopping it from here forward ) but not paying back what you already collected.
Then you reactivate it when you really retire
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12-12-2013, 06:15 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,345
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+1
Quote:
If you are already entitled to benefits, you may voluntarily suspend current or future retirement benefit payments up to age 70 beginning the month after the month when you made the request.
Reminder: We pay Social Security benefits the month after they are due. If you contact us in June and request that we suspend benefits, you will still receive your June benefit payment in July.
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__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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