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SS Question maybe someone can explain
Old 02-05-2013, 11:04 PM   #1
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SS Question maybe someone can explain

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

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Old 02-05-2013, 11:36 PM   #2
Full time employment: Posting here.
Join Date: Jun 2006
Posts: 926
You are going to be okay on this. Have a look at this link
What You Need To Know When You Get Retirement Or Survivors Benefits
and read the two sections "A Special Monthly Rule" and
"If you worked for wages"

CW4, USA-(ret)
RN, BSN-(ret)
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Old 02-06-2013, 12:48 AM   #3
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Yes, there is a special rule the year you start taking benefits. DH retired mid-year and had received a huge bonus that year and half a year's salary plus accrued vacation pay. There was no issue at all with SS.
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Old 02-06-2013, 10:41 PM   #4
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Both are correct, you earned this money before you retired, thus it is considered a special pmt. I'm collecting a severance check and this falls under the same category.

Best thing to do is go to your local office and have an agent take care of it for you.

Here's another link on special payments and both vacation and sick leave are listed as special pay.
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