Regardless of the reasons you might have, the good news is that once you reach full retirement age, you'll no longer suffer any penalties for working. You'll be entitled to your full monthly Social Security benefit regardless of how many hours you work.
You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.
Starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits.
If you're under the full retirement age, however, the annual earnings limit is $21,240 for 2023. If you earn more than this, the SSA will deduct $1 for every $2 you have earned above the limit. In the year that you reach the age of full retirement, the deduction will be $1 for every $3 you earn above the limit.
If you're younger than full retirement age, there is a limit to how much you can earn and still receive full Social Security benefits. If you're younger than full retirement age during all of 2024, we must deduct $1 from your benefits for each $2 you earn above $22,320.
People younger than full retirement age (67 for many) who are receiving Social Security retirement benefits can earn up to a certain amount from work before the Social Security Administration reduces their benefits. The limit is $22,320 in 2024. There is no earnings cap after hitting full retirement age.
You can get Social Security retirement benefits and work at the same time before your full retirement age. However your benefits will be reduced if you earn more than the yearly earnings limits.
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
Again, the 2023 earned income limit for an individual is $1,913, or $2,827 for a couple.
Filing for Social Security at age 62 could also end up making sense financially if you're worried you won't end up living a very long life. While you'll shrink your benefits on a monthly basis, by getting to collect that money sooner, you might end up with a higher amount of lifetime benefits.
You would not be required to file a tax return. But you might want to file a return, because even though you are not required to pay taxes on your Social Security, you may be able to get a refund of any money withheld from your paycheck for taxes.
If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase. If you start receiving benefits early, your benefits are reduced a small percent for each month before your full retirement age.
If you're a part-time worker, you may have a harder time qualifying for Social Security. But you can absolutely collect benefits in retirement if you never hold down a full-time job, as long as you have those 40 work credits under your belt.
In 2024, you can earn up to $22,320 without having your Social Security benefits withheld. But beyond that point, you'll have $1 in benefits withheld per $2 of earnings. The limit is much higher if you'll be reaching FRA in 2024. In that case, you can earn up to $59,520 without having benefits impacted.
Taxes aren't determined by age, so you will never age out of paying taxes. Basically, if you're 65 or older, you have to file a return for tax year 2023 (which is due in 2024) if your gross income is $15,700 or higher. If you're married filing jointly and both 65 or older, that amount is $30,700.
Regardless of your income level, no more than 85% of your Social Security benefits will ever be subject to federal taxation. Note that California does not currently tax Social Security benefits, although 13 other states do.
The earnings limit increases (to $56,520 in 2023) for the calendar year in which you'll reach full retirement age. Starting in the month you hit your full retirement age, there is no longer an earnings limit. Your benefits will no longer be reduced regardless of how much income you have.
If you've worked and paid Social Security taxes for 10 years or more, you'll get a monthly benefit based on that work.
No waiting period is required if you were previously entitled to disability benefits or to a period of disability under § 404.320 any time within 5 years of the month you again became disabled.
If you're at full retirement age but choose to return to work, your benefits won't be affected. The SSA adds that the benefit amount will be recalculated to “leave out the months when [they] reduced or withheld benefits due to your excess earnings.”
If you have filed for your Social Security retirement benefit and you are under your FRA, the earnings limit for 2024 is $22,320/year ($1,860/month). This means that you can earn up to $22,320 and continue to receive your Social Security retirement benefit.
Remember that although your full retirement age might be 67, you can start receiving benefits at 62, even if you're still working. But here's the catch: For the 2024 tax year, if you start benefits before full retirement age, you can only earn up to $22,320 and still get your full benefits.