Ask Terry Questions cash gift impact on Social Security

cash gift impact on Social Security

By Terry Savage on January 08, 2018 | Financial Planning / Retirement

I'm 62 and receive Social security of $1,243 monthly and I'm receiving a $100,000 cash gift this year. will I get tax on my Social Security?

Terry Says

STOP!!!  Don't take Social Security early!   With that kind of cash gift you don't have to take SS.   And you will be giving up a huge increase in monthly benefits that you would get if you waited till your full retirement age of roughly 67 -- or even till the maximum age of 70!   You can use the money from the "gift" in place of taking Social Security.  You'll get a much larger monthly check for life if you want to start your benefits. As for taxes, you will owe no taxes on the "gift".  The giver might want to file a gift tax return for his/her own estate tax purposes, but that is not your issue.  The amount of assets you have does not impact your Social Security check.

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