As the farming community continues to age, one question comes up every year during tax meetings: When should I take Social Security? Like most things, there isn't a cut-and-dried answer. It involves many factors, such as age, health, how much (or how little) you could receive and if you plan on working after you start receiving benefits.

Let's get into the basics and discuss some of my thoughts.

The earliest age you can begin collecting Social Security retirement benefits is 62. However, receiving benefits early will reduce your monthly benefit compared to waiting until your full retirement age (FRA), which ranges from 66 to 67, depending on when you were born. At FRA, you get 100% of the benefit. For those who delay benefits past FRA, increased payments are available up to age 70. The increase from 67 to 70 can be up to 24% more in benefits for waiting three years.

If you plan on taking Social Security before you reach the FRA, Social Security benefits may be subject to reductions if your income exceeds certain limits. The IRS uses a formula to determine how much of your benefits may be reduced based on your earnings from work, pensions or other sources. For 2026, the Social Security benefit gets reduced by $1 for every $2 you earn over $24,480. Keep in mind that the $24,480 is looked at separately, so one spouse might not get any reduction, while the other spouse may get some or all benefits reduced. Once you reach FRA, there is no reduction for additional earnings.

A spouse can elect to receive up to 50% of the other spouse's Social Security retirement benefit at FRA, provided the other spouse has already filed for his or her own benefit. The earliest a spouse can claim these benefits is age 62, but claiming early results in a reduced benefit. When a spouse passes away, the surviving spouse can elect to receive the deceased spouse's Social Security benefit if it is higher than their own. The earliest age a survivor can start benefits is 60 (or 50 if disabled), but the amount is reduced if claimed before FRA.

Taxation of Social Security benefits often comes as a surprise. The IRS uses a combined income method to determine how much of the Social Security benefits are taxable. Combined income means your adjusted gross income plus one-half of your Social Security benefits. If your income is less than $25,000 single or $32,000 married filing jointly (MFJ), then zero percent of the benefits are taxed. If your combined income is $25,000 to $34,000 single or $32,000 to $44,000 MFJ, then 50% of the benefits are taxed. And, if your combined income is above $34,000 single or $44,000 MFJ, then 85% of the benefits are taxed. Most states do not tax Social Security benefits, but a handful do. As of recent years, states that tax Social Security benefits include Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Utah, Vermont and West Virginia.

Now, here are some of my thoughts. Most of my clients have pushed farm income down to avoid tax. This has left them with little earned income to receive much from Social Security. That may persuade them to wait longer to get a decent Social Security payment. Also, my farmers mostly work into their 70s, so taking Social Security at 62 is typically a waste. However, if you have health issues or have financial needs, you have to consider taking Social Security prior to FRA.

My suggestion is to discuss your decision about when to take Social Security with your tax professional or a Social Security expert. This is not a one-size-fits-all determination.

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DTN Tax Columnist Rod Mauszycki, J.D., MBT, is a tax principal with CLA (CliftonLarsonAllen) in Minneapolis, Minnesota. Read Rod's "Ask the Taxman" column at https://www.dtnpf.com/…. You can also reach Rod at taxman@dtn.com.

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