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Social Security 45 Hour Business Work Restriction
Old 05-19-2018, 02:00 AM   #1
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Social Security 45 Hour Business Work Restriction

I want to retire early at 62, I know I will take a 25% reduction in my monthly check, $1,500 down to $1,125. Here is the problem, I work as a Independent Contractor Driver with 4 Companies and I fill out Schedules C and SE with the IRS so I am forced into being a Business receiving only 1099's --- Social Security has a rule in place that if you work more than 45 hours a month in a Business that you are not considered Retired and it looks like they will stop paying you but If I were a Employee working for someone else I could earn around $1,420 a month before they would start taking $1 out for every $2 over their limit. At 45 hours earning around $15 per hour I would only make $675 far short of the $1,420 limit -- Driving is not a highly skilled job (looking at their rules) Do I have to give up 1099 Driving and receive a W2 just to keep my monthly check from being taken away from me? I hope someone has experience in this area.
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Old 05-19-2018, 08:29 AM   #2
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No experience but this seems to make it pretty clear:

https://www.ssa.gov/planners/retire/rule.html




"Some people who retire in mid-year have already earned more than their yearly earnings limit. That is why we have a special rule that applies to earnings for one year, usually the first year of retirement......"
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Old 05-19-2018, 02:06 PM   #3
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Also, you do realize that you can retire at 62 and still wait until you start drawing SS benefits, right? Some people seem to think that if you stop working that you have to start SS.... not true!

Otherwise, go to your local SS office and talk to them.
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Old 05-19-2018, 02:49 PM   #4
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Actually between 62 and FRA you will get your ss cut even if it is w-2 wages if above a limit, although the additional earnings might increase future ss, depending on if they are higher than any of the prior 35 years.
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Old 05-19-2018, 04:04 PM   #5
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1. Delay taking SS as long as you can.
2. If you can shift business income to partner, AKA spouse, consider that.
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