How much can I earn?
Social Security benefits are reduced if you withdraw them before reaching full retirement age and earn income above that year’s annual income limit; your monthly Social Security benefits will be deducted for the rest of the year in which you exceed the limit. If you reach full retirement age in the same year, it will be reduced each month until you reach full retirement age.
How to avoid income limits
The best way to avoid income limits is to wait until you reach full retirement age to start your benefits. Clearly, for some individuals, there may be no option and they must begin collecting benefits because they are laid off from their job and have no other income or assets. If this happens to you but your situation changes and you return to work, you can withdraw your Social Security application within 12 months of starting benefits.
What counts as income?
Unemployment earnings are not counted as income towards the above income limits. If you are earning wages, income is counted when it is earned, not when it is paid. The IRS provides additional details about what counts as earned income and what does not.
Adjustment of income limits for inflation
The income limits will be adjusted upward each year based on the official measure of inflation, which is the Consumer Price Index. In the table below, you can see the historical limits for the years prior to reaching full retirement age. In years when the limit did not change, inflation was very low or negative.
Frequently Asked Questions
What are the limits for Social Security earnings?
At what age do Social Security limits end?
How much can you earn in 2021 and still receive Social Security?
What counts as income for Social Security benefits?
Source: https://www.thebalancemoney.com/how-does-the-social-security-earnings-limit-work-2388828
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