SS Earned Income Amount

[street]

How much money can a person earn in income with a W2 when on SS at age 65? The bold info is what I found and just wanting to confirm if that is correct and it there is anything that I'm missing. I'm asking this for someone else that has asked me. I told her I didn't know the answer but I would see if I could help her. Thanks
The Social Security earnings limit is $1,580 per month or $18,960 per year in 2021 for someone age 65 or younger. If you earn more than this amount, you can expect to have $1 withheld from your Social Security benefit for every $2 earned above the limit.

 

[VanWinkle]

How much money can a person earn in income with a W2 when on SS at age 65? The bold info is what I found and just wanting to confirm if that is correct and it there is anything that I'm missing. I'm asking this for someone else that has asked me. I told her I didn't know the answer but I would see if I could help her. Thanks
The Social Security earnings limit is $1,580 per month or $18,960 per year in 2021 for someone age 65 or younger. If you earn more than this amount, you can expect to have $1 withheld from your Social Security benefit for every $2 earned above the limit.

This is correct, except for the year you reach full retirement age as in the SSA example below:

"In 2021, if you’re under full retirement age, the annual earnings limit is $18,960. If you will reach full retirement age in 2021, the limit on your earnings for the months before full retirement age is $50,520."

VW

 

[street]

This is correct, except for the year you reach full retirement age as in the IRS example below:

"In 2021, if you’re under full retirement age, the annual earnings limit is $18,960. If you will reach full retirement age in 2021, the limit on your earnings for the months before full retirement age is $50,520."

VW

Thanks soo much for confirming. I appreciate that very much. So, one can't make $1600.00 a month just for one month in the year, you need to only earn $1580.00 a month if you don't want a penalty. Is that correct?

 

[Out of Steam]

My wife plans to file for SS within a few months of turning 62, even though she will be near this earnings limit with her current part-time work hours.

The penalty may not a permanent loss, as the extra income can increase benefits if you have worked less than 35 years.

 

[street]

My wife plans to file for SS within a few months of turning 62, even though she will be near this earnings limit with her current part-time work hours.

The penalty may not a permanent loss, as the extra income can increase benefits if you have worked less than 35 years.

That is true. This would be a one month employment of just over $1700.00 for the month but didn't know if SS goes by the month of $1580 or by the total of $18,000 for the year, before the penalty was triggered.

 

[RetiredHappy]

I read this as an annual limit.

https://www.ssa.gov/benefits/retirement/planner/whileworking.html

 

[street]

I read this as an annual limit.

https://www.ssa.gov/benefits/retirement/planner/whileworking.html

Thank you! I also read it that way also.

 

[VanWinkle]

Thanks soo much for confirming. I appreciate that very much. So, one can't make $1600.00 a month just for one month in the year, you need to only earn $1580.00 a month if you don't want a penalty. Is that correct?

Again, from the SSA
website:

"Special rule for the first year
you retire
Sometimes people who retire in mid-year
already have earned more than the annual
earnings limit. That’s why there is a special
rule that applies to earnings for one year,
5 (over)
usually the first year of retirement. Under
this rule, you can get a full Social Security
check for any whole month you’re retired,
regardless of your yearly earnings.
In 2021, a person younger than full
retirement age for the entire year is
considered retired if monthly earnings are
$1,580 or less.
For example, John Smith retires at age 62
on October 30, 2021. He will earn $45,000
through October. He takes a part-time
job beginning in November earning $500
per month. Although his earnings for the
year substantially exceed the 2021 annual
limit ($18,960), he will receive a Social
Security payment for November and
December. This is because his earnings
in those months are $1,580 or less, the
monthly limit for people younger than
full retirement age. If Mr. Smith earns
more than $1,580 in either November or
December, he won’t receive a benefit for
that month. Beginning in 2022, only the
annual limit will apply to him."

 

[street]

VanWinkle, thanks and very well explained. Perfect!!

 

[Gumby]

In 2022, that number goes up to $1630 per month ($19,560 per year)

https://www.ssa.gov/news/press/factsheets/colafacts2022.pdf

 

[marko]

So, am I correct in that a person below FRA, retired for a few years and takes a short term gig making $3,000 a month for 3 months ($9K total) would be subject to the penalty even though they're below the annual limit?

 

[Gumby]

So, am I correct in that a person below FRA, retired for a few years and takes a short term gig making $3,000 a month for 3 months ($9K total) would be subject to the penalty even though they're below the annual limit?

This language from Van Winkle's source above, seems to indicate that is not the case. Only the annual limit applies

"..... Beginning in 2022, only the
annual limit will apply to him."

I also read this document to mean it is measured on an annual basis, except for people who are part year retirees and start social security right after they stop working. Then it is monthly.

https://www.ssa.gov/benefits/retirement/planner/whileworking.html