Will Selling Your Massachusetts Home in Cape Cod, the South Shore, or Boston Affect Your Social Security Benefits?

If you’re a homeowner in Cape Cod, the South Shore, or the Greater Boston area and are thinking of selling your property, you may wonder if the sale could impact your Social Security benefits. Social Security is a significant source of income for many retirees, and understanding the implications of selling your home is essential for a smooth, financially sound transaction.

As experienced real estate advisors in Massachusetts, The Charles King Group is here to help you navigate the process, ensuring your home sale aligns with your financial goals and preserves your benefits. Here’s what Massachusetts homeowners need to know.

1. Social Security Retirement Benefits Remain Unaffected

Selling your primary residence in Cape Cod, the South Shore, or Boston won’t affect your Social Security retirement benefits. Proceeds from the sale aren’t considered earned income, so your monthly Social Security payments won’t be reduced. Whether you’re downsizing, relocating, or moving closer to family, you can sell your home without impacting your Social Security income.

2. Considerations for Supplemental Security Income (SSI)

If you’re receiving Supplemental Security Income (SSI)—a needs-based program—the proceeds from selling your home could impact your benefits. The sale may increase your countable resources or income, potentially resulting in a reduction or suspension of your SSI benefits if you exceed income/resource limits. Before making any decisions, consult a financial advisor to explore strategies for maintaining your eligibility.

3. Possible Impact on Medicare Premiums

For residents of Cape Cod, the South Shore, and Boston, an increased adjusted gross income (AGI) from a home sale may influence your Medicare premiums. Medicare Part B and Part D premiums are income-based, so a higher AGI could lead to an income-related monthly adjustment amount (IRMAA). Consulting a financial professional can help you navigate potential changes to your Medicare costs.

Expert Tips for Selling Your Massachusetts Home and Protecting Your Benefits

The Charles King Group is committed to helping homeowners across Cape Cod, the South Shore, and Boston make informed choices. Here are some tips for successfully selling your home while safeguarding your benefits:

• Plan with a Financial Advisor: Consult a Massachusetts-based financial advisor or tax professional to determine the best strategy for managing your home sale proceeds.
• Consider Your Next Move: Decide whether you’ll be purchasing another property, renting, or relocating out of state, as these choices can affect your financial situation.
• Leverage the Capital Gains Exclusion: Married couples can exclude up to $500,000 in capital gains from their taxable income on the sale of a primary residence, and single individuals can exclude up to $250,000. This exclusion can significantly reduce the tax burden from the sale.

With The Charles King Group as your real estate advisors, you can confidently navigate the Massachusetts real estate market, whether you’re in Cape Cod, the South Shore, or Boston. We’re here to guide you through each step of the process, helping you understand how your home sale may impact your Social Security and Medicare benefits and ensuring your financial security.

For personalized advice and support, reach out to The Charles King Group—your trusted real estate partners in Cape Cod, the South Shore, and Boston. Let us help you make the most of your home sale while protecting the income you’ve worked hard to secure.