I retired one year ago the end of this month. I did not turn 65 until last August and I was assuming the wage limit would kick it at that time. Now I am finding out I may have to pay some of my money back from SS because it figured on the calender year, not when I turn 65 . The limit a 65 year old could make in 2012 was something like $14,400 without getting a penalty. I made $18,000 in February and January because of my vacation leave and sick leave I sold back so if the case is how much I make for 2012 instead of what I made after I turned 65 I will get burned a little. Does anyone here know how this works. I just thought because I was not working when I turned 65 last August and I assumed thats when the $14,400 limit would kick in? I know this year if I worked I could make almost $40,000 with paying anything back but I do not plan on working so thats out. I hope this is not confusing the way I stated it. How would SS handle this if I did make over the limit. Would I have to pay a lump sum or would they just deduct what I owe back in my monthly checks. I know with my state pension, interest from investments, SS and the sick leave and vacation hours I sold back I made almost $60,000. I do understand if we would not have to pay income tax if 1/2 of our SS payments added to my other incomes does not exceed $32,000 which is how I thought it would be until I talked to my tax lady yesterday. I sure hope I do not have to pay any of the SS back. Thanks for reading and maybe someone here can shed some light on this. old trig