If you delay

applying for benefits beyond full retirement age, you'll receive significantly

larger monthly checks when you ultimately decide to call it quits.

Social Security

benefits are increased by a certain percentage each year up to age 70

depending on a person's date of birth. For example, people born in 1943

or later, who must be 66 in order to retire with full benefits, will get

an extra 8 percent a year of their full benefit amount for each year they

delay claiming benefits.

However, once

these individuals reach age 70, there are no benefit increases. A word

of caution: If you decide to delay collecting Social Security benefits,

be sure to sign up for Medicare at age 65. In some circumstances, medical

insurance costs more if you delay applying for it. When it comes to paying

taxes on your Social Security payments, age is not a factor.

According to

the Georgia Society of CPAs, the amount of benefits that is taxable depends

on the total amount of your Social Security benefits and other income.

Some people will not need to pay tax on their benefits.

However if

your income exceeds certain base amounts, up to 85% of your benefits may

be taxable.

The GSCPA is

the premier professional organization for CPAs in the state of Georgia.

With over 10,000 members throughout the state, the purpose of the GSCPA

is to promote the study of accountancy and applicable laws, provide continuing

professional education, maintain high ethical and work standards, and

provide information about accounting issues to the membership and the

public. For more information, access our web site at www.gscpa.org.

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