https://www.ssa.gov/benefits/retirement/planner/whileworking.html
You can work while you receive Social Security retirement or survivors benefits. When you do, it could mean a higher benefit for you and your family.
Each year, we review the records of all Social Security beneficiaries who have wages reported for the previous year. If your latest year of earnings is one of your highest years, we recalculate your benefit and pay you any increase you are due. The increase is retroactive to January of the year after you earned the money.
How Much Can I Earn and Still Get Benefits?
When you begin receiving Social Security retirement benefits, you are considered retired for our purposes. You can get Social Security retirement or survivors benefits and work at the same time. However, there is a limit to how much you can earn and still receive full benefits.
If you are younger than full retirement age and earn more than the yearly earnings limit, we may reduce your benefit amount.
If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2023, that limit is $21,240.
In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2023, this limit on your earnings is $56,520. We only count your earnings up to the month before you reach your full retirement age, not your earnings for the entire year.
If your earnings will be more than the limit for the year and you will receive retirement benefits for part of the year, we have a special rule that applies to earnings for one year. The special rule lets us pay a full Social Security benefit for any whole month we consider you retired, regardless of your yearly earnings.
If you receive survivors benefits, we use your full retirement age, for retirement benefits when applying the annual earnings test (AET) for retirement or survivors benefits. Although the full retirement age for survivors benefits may be earlier, for AET purposes, we use your full retirement age for retirement benefits. This rule applies even if the beneficiary is not entitled to retirement benefits.
Read our publication, “How Work Affects Your Benefits,” for more information.
When you reach full retirement age:
- Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn.
- We will recalculate your benefit amount to give you credit for the months we reduced or withheld benefits due to your excess earnings
How We Deduct Earnings From Benefits
In 2023, if you’re under full retirement age, the annual earnings limit is $21,240. If you will reach full retirement age in 2023, the limit on your earnings for the months before full retirement age is $56,520.
Starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits.
Let's look at a few examples. You are receiving Social Security retirement benefits every month in 2023 and you:
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Are under full retirement age all year. You are entitled to $800 a month in benefits. ($9,600 for the year)
You work and earn $31,240 ($10,000 more than the $21,240 limit) during the year.
- Your Social Security benefits would be reduced by $5,000 ($1 for every $2 you earned more than the limit). You would receive $4,600 of your $9,600 in benefits for the year. ($9,600 - $5,000 = $4,600)
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Reach full retirement age in August 2023. You are entitled to $800 per month in benefits. ($9,600 for the year)
You work and earn $63,000 during the year, with $57,000 of it in the 7 months from January through July. ($480.00 over the $56,520 limit)
- Your Social Security benefits would be reduced through July by $160 ($1 for every $3 you earned more than the limit). You would still receive $5,440 out of your $5,600 benefits for the first 7 months. ($5,600 - $160 = $5,440)
- Beginning in August 2023, when you reach full retirement age, you would receive your full benefit ($800 per month), no matter how much you earn.
When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you're self-employed. We include bonuses, commissions, and vacation pay. We don't count pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits.
If you are eligible for retirement benefits this year and are still working, you can use our earnings test calculator to see how your earnings could affect your benefit payments.
https://www.ssa.gov/benefits/retirement/planner/whileworking.html
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Only earned income, your wages, or net income from self-employment is covered by Social Security. If money was withheld from your wages for “Social Security” or “FICA,” your wages are covered by Social Security. This means you are paying into the Social Security system that protects you for retirement, disability, survivors, and Medicare benefits.
Pension payments, annuities, and the interest or dividends from your savings and investments are not earnings for Social Security purposes. You may need to pay income tax, but you do not pay Social Security taxes.
You must earn at least 40 Social Security credits to qualify for Social Security benefits. You earn credits when you work and pay Social Security taxes.
The number of credits does not affect the amount of benefits you receive. We use the number of credits you’ve earned to determine your eligibility for retirement or disability benefits, Medicare, and your family’s eligibility for survivors benefits when you die.
We cannot pay benefits to you if you don’t have enough credits.
Answer:
Social security benefits include monthly retirement, survivor and disability benefits. They don't include supplemental security income (SSI) payments, which aren't taxable. The net amount of social security benefits that you receive from the Social Security Administration is reported in Box 5 of Form SSA-1099, Social Security Benefit Statement, and you report that amount on line 6a of Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors. The taxable portion of the benefits that's included in your income and used to calculate your income tax liability depends on the total amount of your income and benefits for the taxable year. You report the taxable portion of your social security benefits on line 6b of Form 1040 or Form 1040-SR.
Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.
The base amount for your filing status is:
- $25,000 if you're single, head of household, or qualifying surviving spouse,
- $25,000 if you're married filing separately and lived apart from your spouse for the entire year,
- $32,000 if you're married filing jointly,
- $0 if you're married filing separately and lived with your spouse at any time during the tax year.
If you're married and file a joint return, you and your spouse must combine your incomes and social security benefits when figuring the taxable portion of your benefits. Even if your spouse didn't receive any benefits, you must add your spouse's income to yours when figuring on a joint return if any of your benefits are taxable.
Generally, you can figure the taxable amount of the benefits in Are My Social Security or Railroad Retirement Tier I Benefits Taxable?, on a worksheet in the Instructions for Form 1040 (and Form 1040-SR) or in Publication 915, Social Security and Equivalent Railroad Retirement Benefits. However, if you made contributions to a traditional Individual Retirement Arrangement (IRA) for 2022 and you or your spouse were covered by a retirement plan at work or through self-employment, use the worksheets in Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), to see if any of your social security benefits are taxable and to figure your IRA deduction.
If you did not receive your SSA-1099 from Social Security, also called a Social Security Benefit Statement, you can request one online with a my Social Security account. Replacement SSA-1099s are available beginning February 1 for the previous year. You can also contact Social Security directly if you cannot request it online or if your SSA-1099 needs a correction.
Additional Information:
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| 2,226 | 2,432 | 2,344 |
| ||||||||||
2021 POVERTY GUIDELINES FOR THE 48 CONTIGUOUS STATES AND THE DISTRICT OF COLUMBIA
| Persons in family/household | Poverty guideline |
|---|---|
| For families/households with more than 8 persons, add $4,540 for each additional person. | |
| 1 | $12,880 |
Persons in Household |
48 Contiguous States and D.C. Poverty Guidelines (Annual) |
|||||||
|
|
100% |
133% |
138% |
150% |
200% |
250% |
300% |
400% |
| 1 | $13,590 | $18,075 | $18,754 | $20,385 | $27,180 | $33,975 | $40,770 | $54,360 |
Life expectancy probabilities: No one likes to face the question, "When do you plan on dying?" But really, it's part of the equation. Although retiring early likely means a reduction in benefits, there is a break-even age at which retiring early may make sense. For example, a person who passes away at age 68 would have drawn benefits for six years if he or she began collecting at age 62, but only three years if starting at age 65.
However, if your spouse is expecting to continue drawing spousal benefits for many years after your passing, it may still make sense to wait. Make sure to evaluate whether the lower-earning spouse should take Social Security earlier while the higher earning spouse delays benefits. For some couples, this presents an opportunity to maximize their total benefits.
https://www.schwab.com/learn/story/what-age-can-you-collect-social-security
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwjQgZDRmcT9AhXYEVkFHf4bBD0QFnoECBcQAw&url=https%3A%2F%2Fwww.ssa.gov%2Fpubs%2FEN-05-10070.pdf&usg=AOvVaw3nvhQPFqVleoKJ0588dvUo
https://www.ssa.gov/benefits/retirement/planner/stopwork.html
https://www.benefits.gov/categories/Financial%20Assistance
https://www.nerdwallet.com/article/small-business/how-to-pay-yourself-as-a-business-owner
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee
https://www.ssa.gov/prepare/plan-retirement
https://www.ssa.gov/benefits/survivors/
https://www.ssa.gov/prepare/special-earnings
https://www.ssa.gov/benefits/retirement/planner/netearns.html
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