# I don't understand Social Security and working.



## stef (Sep 14, 2002)

I have heard that once you're on Social Security you can only earn $64.00 a month w/o being taxed. After that it becomes taxible income. Is that correct?

Also, if you do work, will your Social Security benefits be reduced, or do they stay the same and only whatever you earn over $64.00 will be taxed?


I hope my questions make sense. I'd appreciate your input.

tx, 
stef


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## jassytoo (May 14, 2003)

If you take ss early then there is a cap on how much you can earn withpout penalty. After that amount they take 1$ for every 2$ earned. After your full retirement age there is no penalty on your earnings. Don't know what the yearly allowence is for earnings if you take early ss but I'm sure its more than 64$ a month. To be sure you are getting the right information call your local social security office, they'll answer all your questions.


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## Bentley (Jul 10, 2008)

You can start receiving Social Security benefits at age 62, but they will be lower than if you wait until you hit the current full-retirement age of 66 (for those born between 1943 and 1954). If you work before reaching age 66, your benefits will be further reduced if your 2012 earnings exceed $14,640. Beware: depending on your income from other sources, up to 85% of your benefits may be subject to federal income tax.


If you were born between 1943 and 1954, you become entitled to full Social Security benefits at age 66. You won't lose any benefits if you work in years after the year you turn 66. However if you turn 66 in 2012, your 2012 benefits will be reduced if your 2012 earnings from working exceed $38,880. Beware: depending on your income from other sources, up to 85% of your benefits may be subject to federal income tax.


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## Micheal (Jan 28, 2009)

I believe you are asking 2 different questions:
1. SS will be taxed if for example a single person has an additional income of over $20,000 (may be more this year?) 50% or more of SS will be classed as taxable income.

2. SS will be reduced if you earn more than a set amount - in was $14,160 and $37,680in 2010 - the different amounts are year(s) before reaching full retirement age and the year you reach full retirement age. After you are over full retirement age SS is not reduced no matter how much you earn.

This does NOT take into account what your state rules/laws are..........
Plus the numbers used may have changed for 2012??????


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## lj_sunshine (Oct 5, 2004)

Recently my previous employer asked if I would return for awhile. I called SS and asked what would happen with my check. I was told that SS would figure out how long it would take to earn $14,000. My check would be stopped until that amount is reached. Then I would receive a partial check after that.

I chose to not work because the cost of working, (gas, meals, clothes) would cut into my pay and I would have less take-home than if I stayed at home and got my regular SS check.


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## Big Dave (Feb 5, 2006)

Here is the real deal. NO GARUNTEES. I have paid in all my life and no one told me I was going to live past 66. No one told me I was going to live as long as I have. So when I can get my SS I am getting it. The greed factor be hanged. I give ceaser what is ceaser's and give the LORD what is the LORD's. I don't want to be on welfare so why do I want to have the goverment in my private affairs. I must be careful or they will TED Nugent me here. You have made the right choice there lj sunshine. Hope all others can as well. It will be up to the individual and there circumstances.


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## goatlady (May 31, 2002)

Been drawing SS for 10 years and also working part time for those 10 years. ANY earning at any age are subject to FEderal income tax being withheld unless you "opt out" on your W-2 form. Also SS will be taken out of those earnings. YOur benefit received monthly is NOT effected by your earnings unless those earnings, all by themselves, exceed whatever amount is applicable for that year. I am earning an average of $900 a month, paid $69 fed. tax, $2 state tax, and whatever for SS withholding.


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## Nevada (Sep 9, 2004)

Big Dave said:


> Here is the real deal. NO GARUNTEES. I have paid in all my life and no one told me I was going to live past 66. No one told me I was going to live as long as I have. So when I can get my SS I am getting it. The greed factor be hanged. I give ceaser what is ceaser's and give the LORD what is the LORD's. I don't want to be on welfare so why do I want to have the goverment in my private affairs. I must be careful or they will TED Nugent me here. You have made the right choice there lj sunshine. Hope all others can as well. It will be up to the individual and there circumstances.


You aren't really giving it to Caesar, it's just that your Social Security insurance underwriter happens to be the government. It's not welfare, it's an annuity. That's a pension program that pays for as long as you live, based on contributions and actuary data that predicts how long the average person lives. You can get similar annuities from any major life insurance company.


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## Huntmo1 (Nov 30, 2011)

EDIT: I did some searching and actually found the answer to my question on the Social Security website. For those of you who may be interested, here is what it says:

"Earnings for active duty military service or active duty training have been covered under Social Security since 1957.

Social Security has covered inactive duty service in the armed forces reserves (such as weekend drills) since 1988.

If you served in the military before 1957, you did not pay Social Security taxes, but we gave you special credit for some of your service.

You can get both Social Security benefits and military retirement. Generally, there is no reduction of Social Security benefits because of your military retirement benefits. You&#8217;ll get your full Social Security benefit based on your earnings."



How does it work for those who receive a pension? Is that considered 'earnings' that will affect the amount of SS they receive? For example, I have a military pension...I assumed that I would get my full SS when eligible, without any penalty as long as I didn't continue to have a job. 

Thanks.



jassytoo said:


> If you take ss early then there is a cap on how much you can earn withpout penalty. After that amount they take 1$ for every 2$ earned. After your full retirement age there is no penalty on your earnings. Don't know what the yearly allowence is for earnings if you take early ss but I'm sure its more than 64$ a month. To be sure you are getting the right information call your local social security office, they'll answer all your questions.


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