Social Security is commonly seen every bit a source of retirement income. Simply you're allowed to piece of work and take Social Security retirement benefits or survivor benefits at the same time. If you do so before yous reach total retirement historic period, though, Social Security may withhold part of your benefits.

Beneath we'll cover how you lot tin can get Social Security benefits even while you're even so working. Learn how y'all can keep as much of that coin as possible.

A Social Security card slid into a spread-out pile of money.

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How much tin you earn and still receive Social Security?

When you take benefits while yous're even so working, Social Security may withhold part of your benefit depending on your income if you haven't reached full retirement age. Your full retirement age is between 66 and 67 if you were born from 1943 to 1959; it's 67 if yous were born in 1960 or later.

Social Security will withhold benefits at the following rates in 2022:

  • $1 for every $two of earned income higher up $18,960 until the yr yous reach full retirement age. Permit's say you're 64 and earn $twenty,000 from working, and you're already getting benefits. Y'all've earned $1,040 above the earnings limit, then Social Security would withhold $520 from your benefit.
  • $one for every $3 of earned income higher up $l,520 the year yous reach full retirement age until the month earlier you're eligible for your full benefit. Suppose you lot reach full retirement historic period in October. Social Security would but reduce your benefits if you earned more $50,520 between January and September.

These rules apply whether you're an older worker taking benefits based on your ain work record or you're getting a spousal do good or a survivor do good.

The key to understanding Social Security'southward rules about working and benefits is that everything changes when you accomplish the date when yous tin can fully retire. After that point, yous can earn as much as you desire and all the same keep all your benefits. Earlier, though, you can give up some of your benefits.

Can you get your full benefit if you lot're yet working?

If you've reached full retirement historic period and you lot're still working, y'all don't need to worry most whatever earnings limits. Social Security volition non withhold money from your monthly benefit. Social Security also won't have money out of your checks if you claim early but your income is beneath the thresholds listed to a higher place.

What happens to the money Social Security withholds?

The Social Security Administration calculates the appropriate amount that you lot'll forfeit and so takes it out of your monthly benefits. Y'all'll meet unabridged monthly checks held dorsum past the government to comprehend the withholding. For example, if y'all normally get Social Security of $i,000 per month but y'all have to forfeit $4,000, and so Social Security will concur back four months' worth of checks.

Equally painful as it is to lose your benefits, at that place is some payback. If you lose a calendar month'southward worth of benefits, then Social Security treats y'all as if you retired a month later than yous did. One time you hit full retirement age, you'll showtime getting larger monthly checks based on that subsequently retirement date. You might not get all your lost money back, merely the bigger checks will gradually send some of information technology your way.

Are your Social Security benefits taxed if you're still working?

If you take earnings from working or you have other taxable income, such as distributions from a retirement plan, office of your Social Security may exist taxed.

Whether yous're nevertheless employed or you're a retiree, you'll pay taxes on upwardly to 85% of your Social Security do good if:

  • You lot're unmarried with a taxable income of $34,000 or higher.
  • You're married filing jointly with a combined taxable income of $44,000 or higher.

You lot'll pay taxes on upward to 50% of your Social Security benefit if:

  • You're single with a taxable income between $25,000 and $34,000.
  • Yous're married filing jointly with a combined income between $32,000 and $44,000.

If your income is below these limits, yous won't owe taxes on your Social Security.

What if I stop working in the middle of the twelvemonth?

There's a special rule for when yous piece of work function of the year but and then retire. Regardless of your full earnings, you lot're however entitled to become Social Security checks for any calendar month in which yous've officially retired.

As an case, say you lot retire early at 63 and decide that you're going to quit your $200,000-per-twelvemonth job at the terminate of June. Yous'd forfeit all of your benefits for the first six months of the year because of your high earnings, but, starting in July, you could still get checks for the remaining half-dozen months fifty-fifty though your total almanac earnings were well above the almanac limit.

Will I lose my Social Security Disability or SSI benefits if I work?

Rules for disability benefits are completely different from retirement benefits. In order to collect disability, the Social Security Administration requires that you no longer be able to engage in what's known every bit substantial gainful activity. For 2022, that means earning no more than $1,310 per calendar month unless y'all're blind, in which case a $2,190 monthly limit applies.

Unlike the retirement do good rules, at that place'southward no phaseout for losing disability benefits. Earn a unmarried $i higher up the limit, though, and y'all lose every penny of what you get from Social Security Disability. If you make less than the amounts to a higher place, then you keep full benefits, simply, if you make more, then you lose all of your disability benefits.

Still, Social Security allows disabled workers a nine-month trial period to test their ability to work. During this period, you're immune to collect your full benefit no matter how much yous earn, equally long every bit you report the income and still have a disability.

If you receive Supplemental Security Income (SSI), your benefits are reduced by $0.50 for every dollar you earn above $85 in 2022.

Should I work and take Social Security?

If y'all want to maximize your monthly Social Security checks, the simplest retirement strategy is to wait until full retirement historic period before claiming your benefits. That way, yous'll be able to earn an unlimited amount without losing a penny of your Social Security.

If waiting that long isn't an pick, there are however some things you can do. For many, claiming at the beginning of the year in which you lot'll reach full retirement age works out fine considering the higher earnings limits go far less probable that you'll requite up your Social Security.

Finally, if y'all're expecting to piece of work on a role-time basis, it's smart to look at the earnings limits and how they compare with your pay. If it looks like you might trigger the provisions, so you might decide to work a fiddling less to keep all your benefits.