Social Security - is this right?
 

My husband started receiving ss late last year (Oct). We just came from H & R Block who said we had to pay it all back in taxes because of what I made. (I am still working fulltime.) I asked if we couldn't file separately and was told we cannot file married filing separately due to living together - huh?
Is this right? I thought you had to pay taxes on SS or lost it, if the person getting made too much money, not the spouse. My husband did not work all of 2008. Anybody know if this correct.

That certainly doesn't sound right to me, I would check with someone else.

A phone call to social security is in order

You can go online to TaxAct or TurboTax and check your returns at no cost.
http://www.2ndstorysoftware.com/
http://turbotax.intuit.com/index.jsp
This will allow you to check your liability for different scenarios, married filing jointly, married filing separately, to see which is best.
I don't have the highest regard for the H&R Block store-front operations. An accountant would cost a little more, but be a worthwhile investment.:beer3:

Yes you are taxed on SS income. While one of you is still working, your probably better off waiting to have your husband start drawing. The longer you wait the more you get until the pot is empty that is. You can still give it all back, not pay any tax on it, and start again sometime in the future. This is a one time option so make sure it is right for you. Get a good tax accountant involved. Didn't realize you were one of the "rich" until now, did you. Stick around, it will get worse.

Married couples living together can file separate returns.

True, but it can lead to nasty surprises regarding Roth IRA's and, possibly, even higher tax rates.
Figure your taxes as both joint and separate filers and use whatever produces the lower tax bill. Joint filing will probably be your best choice.

Something definitely does not sound right. Yes, a portion of SS can be taxed based on total family income, but to my knowledge it should NOT mean that the SS benefits themselves have to be given back if one's spouse is not retired yet. For sure check with someone more reliable than H&R Block....

If your hubby is 66 or older, SS benefits are not subject to reduction due to other earnings.

Age 65 has less reduction than age 64 and younger.

Please
 

Go to a reputable tax accountant. A little bit of knowledege is a dangerous thing.
We all have good information and mean well, but we don't have the whole picture.
A good accontant will try all the variables to get the best results for your situation.
Believe me, it's worth the money.