Savvy Senior What happens if you work while receiving Social Security?

Dear Savvy Senior, I started drawing my Social Security retirement benefits back in 2021 when I was forced to retire early, but I’m now interested in going back to work part-time. Will this affect my benefits, and if so, how much?

Back to Work

Dear Back, You can collect Social Security retirement benefits and work at the same time but, depending on how old you are and how much you earn, some or all of your benefits could be temporarily withheld. Here’s how it works.

Ssa Earning Rules

Social Security says that if you are under your full retirement age and are collecting benefits, then you can earn up to $21,240 (in 2023) without jeopardizing any of your Social Security if you don’t reach your full retirement age this year. But if you earn more than the $21,240 limit, you’ll lose $1 in benefits for every $2 over that amount.

Full retirement age is 66 for

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For FREE consumer reports, articles, and estate planning webinars, please visit us at www.unsworthlaplante.com those born between 1943 and 1954, but it rises in two-month increments every birth year to age 67 for those born in 1960 and later. You can find your full retirement age at www.SSA. gov/benefits/ retirement/planner/ageincrease. html.

In the year you reach your full retirement age, a less stringent rule applies. If that happens in 2023, you can earn up to $56,520 from January to the month of your birthday with no penalty. But if you earn more than $56,520 during that time, you’ll lose $1 in benefits for every $3 over that limit. And once your birthday passes, you can earn any amount by working without your benefits being reduced at all.

By Jim Miller

and vacation pay all count toward the income limits, but pensions, annuities, investment earnings, interest, capital gains and government or military retirement benefits do not. To figure out how much your specific earnings will affect your benefits, see the Social Security Retirement Earnings Test Calculator at www.SSA.gov/OACT/ COLA/RTeffect.html.

fits taxable.

Here’s how it works. If the sum of your adjusted gross income, nontaxable interest, and half of your Social Security benefits is between $25,000 and $34,000 for individuals ($32,000 and $44,000 for couples), you have to pay tax on up to 50 percent of your benefits. Above $34,000 ($44,000 for couples), you could pay on up to 85 percent, which is the highest portion of Social Security that is taxable. About a third of all people who get Social Security have to pay income taxes on their benefits.

Wages, bonuses, commissions