Help ssa questionnaire the day before my first check... full year $70k part time.

[rayinpenn]

A letter came Saturday from ssa that I opened today; I thought it was just a confirmation. No it was you said your expected income in 2017 was $xx,xxx. Estentially we want another estimate so we can decide what your check should be.

Any idea what gives? I work 3 days a week since July... good money but not huge.

 

[N02L84ER]

If you collect SS before full retirement age and you work, SS reduces your check amount at a specific ratio if your income is over a specific number. I do not know the numbers off hand.

 

[rayinpenn]

Found it. thanks N02L84ER. Darn It wipes out the entire amount.

"Until you reach full retirement age, Social Security will subtract money from your retirement check if you exceed a certain amount of earned income for the year. For the year 2017, this limit on earned income is $16,920 ($1,410 per month). The amount goes up each year. If you are collecting Social Security retirement benefits before full retirement age, your benefits are reduced by $1 for every $2 you earn over the limit. Once you reach full retirement age, there is no limit on the amount of money you may earn and still receive your full Social Security retirement benefit."

75,000\ 12 = $6,250 minus the $1,410 max gives me $4840
Then divide by 2,420 which is bigger then my entire monthly SS.
Yikes. I knew it was too good to be true. I'm sure there are lots of people who would love to have a part time gig like mine.

 

[brucethebroker]

Check into making your employment self employment-only your "net income" is considered, so take advantage of all deductions available. If that still does not help, work even less.

Or, don't worry about it....you will get it back later if you live long enough.

Good post though, you may prevent others from claiming early under similar circumstances.

 

[SheitlQueen]

I found out about this rule after I went to SS to apply for widow's benefits.However, because I was still working, my benefits would be zero.
It's one of the factors that made me decide to retire. I thought it unfair that my husband paid in a LOT of money to social security, and now every penny would be gone. I calculated how much I needed to live on and how much I would get via SS widow's benefits and rental income, and found out I could live on it. So I retired.

Which shows the stupidity of the rule. First, my husband paid in approximately $200,000 in SS and Medicare payments (self employed), so why should that money not be available for family members?
Second, I also was self employed and was paying a hefty chunk of money for taxes and Medicare/SS. So instead of continuing to work and getting widow's benefit, I now draw SS widows benefits. The government turned me into someone paying into the system to someone who now only draws from it. Stupid.

 

[ivinsfan]

Found it. thanks N02L84ER. Darn It wipes out the entire amount.

"Until you reach full retirement age, Social Security will subtract money from your retirement check if you exceed a certain amount of earned income for the year. For the year 2017, this limit on earned income is $16,920 ($1,410 per month). The amount goes up each year. If you are collecting Social Security retirement benefits before full retirement age, your benefits are reduced by $1 for every $2 you earn over the limit. Once you reach full retirement age, there is no limit on the amount of money you may earn and still receive your full Social Security retirement benefit."

75,000\ 12 = $6,250 minus the $1,410 max gives me $4840
Then divide by 2,420 which is bigger then my entire monthly SS.
Yikes. I knew it was too good to be true. I'm sure there are lots of people who would love to have a part time gig like mine.

This has been in the mix for forever and probably mentioned umpteen times on this forum....can you simple cancel the SS?

 

[ivinsfan]

A letter came Saturday from ssa that I opened today; I thought it was just a confirmation. No it was you said your expected income in 2017 was $xx,xxx. Estentially we want another estimate so we can decide what your check should be.

Any idea what gives? I work 3 days a week since July... good money but not huge.

Actually you have been better served by waiting until 2018 to start those checks.

 

[Svensk Anga]

This has been in the mix for forever and probably mentioned umpteen times on this forum....can you simple cancel the SS?

I think you can withdraw the application for benefits any time within 12 months and it is as if you had never applied. You do have to pay back any benefits received while the administrative wheels turn.