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Ask Rusty: About Social Security’s “First Year Rule”
Dear Rusty: I’m considering filing for my Social Security (SS) at age 64 in February, before my full retirement age of 66 years and 10 months. I’m working full time and would like to continue earning until I meet the $21,240 limit for this year. When does the $21,240 limit go into effect? Does it […]
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Dear Rusty: I’m considering filing for my Social Security (SS) at age 64 in February, before my full retirement age of 66 years and 10 months. I’m working full time and would like to continue earning until I meet the $21,240 limit for this year. When does the $21,240 limit go into effect? Does it start after receiving my first SS benefit deposit? Or does Social Security go by my year-to-date earnings starting on Jan. 1?
If I file in February and it takes 90 days to receive my first SS deposit, and at that point my year-to-date earnings are $18,500, can I continue to work until I earn the balance of the $21,240 ($2,740) and then stop working? Or do they only count the earnings after I receive the first benefit payment? I know that for anything earned over $21,240 I’ll need to repay $1 for every $2 over the limit.
Signed: Ready to Retire
Dear Ready to Retire: Since you haven’t yet reached your full retirement age (FRA), if you claim now and are working, things will work somewhat differently during your first year collecting benefits.
If you claim for your benefits to start in February, only your earnings starting in February count toward the earnings limit. But during your first calendar year, once your benefits start, you’ll be subject to a monthly earnings limit of $1,770 and, if that is exceeded in any month (February through December), you won’t be eligible for benefits for that month. That means that the Social Security Administration (SSA) could withhold your entire monthly amount for any 2023 month after January that exceeds the monthly limit. This is part of Social Security’s “first year rule,” which applies only during your first calendar year collecting. If, instead, you claim for your benefits to start in March, then the monthly limit will apply from March thru December. Remember, it’s not when your payment is received that counts; it’s when your benefits start (the SSA pays benefits in the month following the month earned). Beginning in 2024 only the annual limit would apply.
Nevertheless, the first-year rule offers some latitude on your earnings. If the penalty for exceeding the annual earnings limit ($21,240 for 2023) is less than the penalty which results from using the monthly limit, the SSA will use the annual limit and assess the smaller penalty amount. So, if your annual (full year) 2023 earnings are less than $21,240, no penalty will be assessed, or if you only exceed the annual limit by a small amount, you’ll be assessed a penalty of $1 for every $2 you are over the limit. But if your annual earnings are substantially more than the 2023 limit, the SSA may deem you temporarily ineligible to get benefits. When you complete your application there will be a section asking you to tell the agency about this year’s earnings as well as what you expect next year’s earnings to be. From that, the SSA will decide whether you are currently eligible to collect benefits.
So, if your goal is to work only to the point that no penalty will be assessed, you can work until your 2023 earnings reach $21,240 (whenever that is). Or you could work even a little bit longer and simply take the penalty (half of what you exceed the annual limit by), in which case the SSA will simply withhold future benefits for enough months for it to recover what is owed for exceeding the limit. But if you continue working full time and will substantially exceed the annual limit, it’s likely the Social Security Administration will say you are temporarily ineligible to collect benefits (until your earnings are less or you reach your full retirement age when the earnings test no longer applies).
Russell Gloor is a national Social Security advisor at the AMAC Foundation, the nonprofit arm of the Association of Mature American Citizens (AMAC). The 2.4-million-member AMAC says it is a senior advocacy organization. Send your questions to: ssadvisor@amacfoundation.org.
Author’s note: This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). The NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity.
VIEWPOINT: Governor Hochul Vetoes Changes to Wrongful-Death Law
On Jan. 31, 2023, New York Gov. Kathy Hochul vetoed a bill designed to dramatically overhaul the state’s wrongful-death statute by permitting the family members of wrongful-death victims to recover for emotional distress. Under the current law, economic recovery for wrongful-death claims is primarily limited to the lost earning potential of the deceased individual. The Grieving
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On Jan. 31, 2023, New York Gov. Kathy Hochul vetoed a bill designed to dramatically overhaul the state’s wrongful-death statute by permitting the family members of wrongful-death victims to recover for emotional distress.
Under the current law, economic recovery for wrongful-death claims is primarily limited to the lost earning potential of the deceased individual. The Grieving Families Act (Senate Bill S74A) would have changed this by allowing the additional recovery of emotional and non-economic damages. Specifically, the bill would have allowed monetary damages for “grief or anguish caused by the decedent’s death, and for any disorder caused by such grief or anguish;” “loss of love, society, protection, comfort, companionship, and consortium resulting from the decedent’s death;” and “loss of nurture, guidance, counsel, advice, training, and education resulting from the decedent’s death.” Historically, the estates of wrongful-death victims have been strictly forbidden from recovering these types of damages, and the proposed bill would have drastically increased the potential value of wrongful-death lawsuits.
Other notable changes in the bill included an extension on the limitations period within which a deceased individual’s estate could seek to recover for wrongful death and an expansion of the class of persons able to recover on a wrongful-death claim. The bill would have extended the statute of limitations from the current two-year limitations period to three and a half years. The legislation also would have permitted all “close family members” to recover on a wrongful-death claim. The proposed legislation left it up to the finder of fact to determine who qualified as a close family member. Under the current law, only specified persons are permitted to recover on a claim.
In an op-ed explaining her veto, Gov. Hochul lauded the goals of the Grieving Families Act, but expressed concerns over potential unintended economic consequences. The governor specifically noted that the bill, as proposed, could have driven up health-insurance premiums and added significant costs to many sectors of the economy, noting hospitals in particular. As a proposed compromise, Hochul suggested implementing a version of the bill that exempted medical-malpractice claims.
Given the broad bipartisan support for the bill, the New York Legislature is expected to bring another version to Gov. Hochul’s desk in 2023.
Jackson K. Somes is an associate attorney in the Rochester office of Syracuse–based Bond, Schoeneck & King PLLC. He concentrates his practice area on commercial litigation matters, issues involving school law and defending medical-malpractice lawsuits. Contact Somes at jsomes@bsk.com.

Broome County executive lays out agenda in State of the County address
ENDWELL, N.Y. — Broome County Executive Jason Garnar highlighted recent success in the county and laid out his agenda for the coming year at his

State awards Oswego Health nearly $10 million for primary care expansion, technology
OSWEGO, N.Y. — Oswego Health says it plans to use $9.6 million in New York State funding to further expand primary care services and improve

Cazenovia College selects speaker for final commencement in May
CAZENOVIA, N.Y. — Cazenovia College announced it has selected John Robert Greene as the keynote speaker for its 198th and final commencement on May 13.

Southern Tier communities receive $19 million in downtown revitalization funding
Johnson City will receive $10 million in state Downtown Revitalization Initiative funding while the villages of Montour Falls and Waverly will each get $4.5 million
Fust Charles Chambers names senior managers
SYRACUSE — Fust Charles Chambers LLP, a certified public accounting (CPA) firm based in Syracuse, recently announced the promotion of two individuals to senior-manager roles. Michael W. Hartwell, CPA has been elevated to senior tax manager. He joined the firm in 2015. Hartwell received his bachelor’s degree and MBA in accounting from St. Bonaventure University.
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SYRACUSE — Fust Charles Chambers LLP, a certified public accounting (CPA) firm based in Syracuse, recently announced the promotion of two individuals to senior-manager roles.
Michael W. Hartwell, CPA has been elevated to senior tax manager. He joined the firm in 2015. Hartwell received his bachelor’s degree and MBA in accounting from St. Bonaventure University.
Jeff T. Wenner, CPA has been promoted to senior audit manager. He joined the accounting firm in 2013. Wenner received his bachelor’s in accounting from Le Moyne College and his MBA in accounting from the University of Rochester.
Both senior managers will continue to service the firm’s manufacturing, distribution, health care, not-for-profit, and other closely held business clients.
Fust Charles Chambers, located at 220 S Warren St., employs more than 80 professionals who provide accounting, tax, and business-advisory services to the business and health care community in New York.

Onondaga County audit finds more than $420K in unpaid room-occupancy taxes
The office of Onondaga County Comptroller Martin Masterpole performed the audit. The report covered 50 hotels and motels for the period 2019 through 2022, per the Feb. 9 announcement. The Office of the Comptroller examined tax returns totaling $9.1 million in room-occupancy tax (ROT), based on $173 million of reported gross revenue. Audited property management
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The office of Onondaga County Comptroller Martin Masterpole performed the audit. The report covered 50 hotels and motels for the period 2019 through 2022, per the Feb. 9 announcement.
The Office of the Comptroller examined tax returns totaling $9.1 million in room-occupancy tax (ROT), based on $173 million of reported gross revenue. Audited property management records indicated these same returns should have identified $177 million in gross revenue with the result being $9.4 million in ROT due to the county.
The 50 ROT audits conducted and completed in 2022 found 47 operators non-compliant with one or more of the audit criteria following relevant laws, regulations, contracts, standards, measures, expected performance, defined business practices and benchmarks against which performance is compared or evaluated. As a result, the audits found $421,837 (including penalties and interest) in additional revenue for the benefit of the taxpayers of Onondaga County, the comptroller said.
That included $307,065 in underreported revenue and an additional $117,827 in uncollected penalties and interest. The report didn’t name any specific hotel operator that owed the county more tax money.
The audit report indicates the major areas in which operators weren’t compliant included not submitting collected ROT to the county; lack of documentation to support guest’s tax-exempt status; inaccurately completing the ROT quarterly returns; not increasing the ROT rate to 7 percent to comply with Local Law No. 1 – 2021; not reconciling internal reports, such as exempt guest stay reports to accounting reports; not charging ROT against cot fee or roll-away bed revenue; and not charging ROT against pet-fee revenue.
The Onondaga County Hotel Room Occupancy Tax (ROT) Law permits the county to collect a 7 percent room-rental tax on the per-diem rental charge, per Masterpole’s office.
“The audits performed by my staff continue to find significant underreported revenue for the benefit of Onondaga County taxpayers, Masterpole said.
The Office of the Comptroller discusses all audit findings with the management of the hotel/ motel prior to written notification of the audit results, per the report.
OPINION: New York’s Medicaid Shuffle Will Devastate Localities
As the New York State executive budget proposal inches closer to a final product, its insufficiencies and impacts become clearer. One area of especially great concern is Gov. Kathy Hochul’s plan to intercept federal funding meant to help offset localities’ Medicaid costs. Under the governor’s plan, more than $624 million in federal money earmarked for
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As the New York State executive budget proposal inches closer to a final product, its insufficiencies and impacts become clearer. One area of especially great concern is Gov. Kathy Hochul’s plan to intercept federal funding meant to help offset localities’ Medicaid costs. Under the governor’s plan, more than $624 million in federal money earmarked for localities would instead be diverted into state coffers. Worse still, as much as $2.9 billion over four years would be shifted away from those same local governments.
The proposal would be alarming under normal circumstances — most local governments are ill-equipped to take on such a considerable expense with almost no warning — but considering New York’s tax burden is already among one of the worst in the nation, this measure becomes even more troubling. Localities unable to shoulder this burden — as undoubtedly many will not be able to do so — will be forced to pass along that burden to taxpayers. That simply doesn’t work considering the crisis-level outmigration the state has faced in recent months and years and the toxic business climate suffocating the state.
In a recent interview, Stephen Acquario, executive director of the New York State Association of Counties (NYSAC), expressed his concerns about the proposal. Among his chief complaints are the service and program cuts likely to come as a result of the plan, and the lack of warning localities had to prepare for such a dramatic shift. According to NYSAC, counties like Erie (city of Buffalo), Onondaga (Syracuse), and Monroe (Rochester) are looking at increases between $13 million and $27 million. Suffolk and Westchester counties (on Long Island) are even higher than that, as they are facing $28 million and $32 million in additional costs, respectively. These are staggering figures when put into context with other costs local governments already face.
The proposal taken at face value is troubling enough, but the fact remains the pervasive pattern of ignoring local governments’ needs is a much bigger problem. The state budget should be crafted with careful intent and the interests of every single New York taxpayer in mind. This proposal, along with too many others in the governor’s spending plan, continues the trend of treating the residents, businesses, and visitors here like a personal piggy bank.
Clearly, health care is an important industry in New York, and managing its costs can be challenging at times. But the best way to do so is with careful spending, reducing waste, cutting down on inefficiencies, and mitigating as many of those burdens away from taxpayers as possible. The executive budget does just the opposite. If New York is ever going to get take meaningful steps to improve its economy, it will take a far more nuanced strategy than shifting $2.9 billion away from those who can least afford to pay that bill.
William (Will) A. Barclay, 53, Republican, is the New York Assembly minority leader and represents the 120th New York Assembly District, which encompasses all of Oswego County, as well as parts of Jefferson and Cayuga counties.
OPINION: In the U.S., We Have Chosen Representative Democracy
We Americans live in a representative democracy. That’s a fundamental feature of public life in the United States, a part of who we are as a people. We elect leaders to make decisions on our behalf. It’s not a pure democracy, in which the people vote on every important issue and the majority gets its
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We Americans live in a representative democracy. That’s a fundamental feature of public life in the United States, a part of who we are as a people. We elect leaders to make decisions on our behalf.
It’s not a pure democracy, in which the people vote on every important issue and the majority gets its way. Sometimes we do vote on questions of public interest: amendments to the national and state constitutions, for example, and referendums on whether to raise taxes or adopt new laws.
But, for the most part, we govern by representative democracy. We entrust elected representatives, from the president down to township officials and local school board members, to look out for our interests and carry out our wishes. Our elected officials debate the issues and vote.
This was the approach that our nation’s founders established more than 200 years ago, and it’s one that we have chosen to embrace and renew, generation after generation. There’s nothing inevitable or preordained about this. Other nations have adopted different systems, and we could as well. Some have moved far to the right, instituting fascist rule. Some have moved far to the left, adopting socialism. We’ve also seen authoritarian regimes that combine features of the right and left.
But in the U.S., representative democracy has served us well, and it has expanded over the years. At America’s founding, only white men who owned property were routinely permitted to vote. Black Americans were given the right after the Civil War; in practice, many were kept from voting for 100 years by poll taxes, literacy tests, and intimidation. The 19th Amendment, ensuring suffrage for women, wasn’t ratified until 1920.
As the franchise expanded, government grew more representative of America. Today, women hold a record 153 of the 540 voting and nonvoting seats in the House of Representatives and the Senate. Some 133 senators and representatives identify as Black, Hispanic, Asian American, American Indian, or Alaska Native, according to an analysis by the Pew Research Center.
This is important, but it’s not enough. If our representatives are going to represent our interests, they must cultivate political skills: the ability to communicate, speak persuasively and listen with discernment, to focus on real problems and bring people together to solve them. These skills are often underappreciated, but they are essential for translating the will of the people to effective government. Our representatives need to be willing to compromise, and it’s troubling that our politics have grown so polarized that compromise can seem like a dirty word.
The authors of the Declaration of Independence wrote that we rely on government to secure our rights to “life, liberty and the pursuit of happiness.” As Americans, we particularly value liberty: our freedom to live as we please. But we also must recognize that our freedom shouldn’t curtail the rights of others. Government should look out for everyone, not just the powerful or politically connected.
Finally, living in a representative democracy puts a premium on elections and voting. We need to have confidence that our elections are free and fair. Former President Donald Trump’s false claim that the 2020 election was stolen did serious damage, leading to the Jan. 6, 2021, attack on the Capitol and to divisions and distrust that persist today.
We also need to encourage voting and make it easier. It’s common for politicians to impose restrictions on registration and voting in the name of election security. This may help them win elections in the short run; but, in the long run, it undermines our system of government.
The ballot is the foundation of our democracy and the best way to gauge the public’s will. Fair elections that engage the voters are essential to making our representative government truly representative.
Lee Hamilton, 91, is a senior advisor for the Indiana University (IU) Center on Representative Government, distinguished scholar at the IU Hamilton Lugar School of Global and International Studies, and professor of practice at the IU O’Neill School of Public and Environmental Affairs. Hamilton, a Democrat, was a member of the U.S. House of Representatives for 34 years (1965-1999), representing a district in south-central Indiana.
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