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I just read today's column on reapplying for Social Security at age 70.  The idea is that you refund the SS benefits you have received, then resume benefits at a higher rate.  How is taxation handled, if the earlier benefits are subject to tax?  Do you file amended returns for all those years?  Do you deduct the repayment from the current year?

Thanks,

Doug 

Hey, I was wondering how this will affect medicare if you  enroll from s.s.?

dougjohnson:

I just read today's column on reapplying for Social Security at age 70.  The idea is that you refund the SS benefits you have received, then resume benefits at a higher rate.  How is taxation handled, if the earlier benefits are subject to tax?  Do you file amended returns for all those years?  Do you deduct the repayment from the current year?

Thanks,

Doug 

I just found the answer to my own question.  According to: http://www.irs.gov/publications/p915/ar02.html#d0e3948

You can get a tax credit in the year you file the withdrawal of application for the taxes paid in previous years.  So if you plan to do this, you should figure your taxes each year with and without Social Security.  Then, when you withdraw and refile for Social Security, you add up all the added taxes you have paid over the previous years, and put them as a credit on line 70 of form 1040.  

-- Doug 

It won't affect Medicare. You are eligible for Medicare at age 65. You are free to take Social Security benefits any time after your 62nd birthday.

Scott