great info- quick comment though: at 2:36 your example w.r.t. earnings limit is $27,240 PER MONTH earnings (above and beyond $1500/month social security), I think that was meant to be an ANNUAL earnings example, not monthly?
GREAT WORK, I WATCHED A LOT OF VIDEOS ABOUT THIS SUBJECT, NO ONE, i MEAN, NO ONE, ANSWER THE QUESTION CORRECTLY., MEANING THEY DID NOT TACKLE THE SUBJECT IN FULL. THANK YOU.
You left out the option of collecting at full retirement age while continuing to work, and how SSA will increase your monthly payment based on recalculating your highest 35 years of income.
At 3:44 you say there is an earnings limit on Social Security benefits at full retirement age. But that's not correct for anyone who STARTS collecting at full retirement age. There's no earnings limit on Social Security earnings in that case. So perhaps you meant to say that the earnings limit changes to a higher limit at full retirement age for people who STARTED collecting benefits BEFORE retirement age? It's not clear in the video.
Great video, James. Thank you! :) I've been unsuccessful in finding an answer to the following... For the earnings test, is the gross dollar amount of wages used as earnings, or are earnings based on AGI? Or another figure, e.g., taxable SS wages? This makes a pretty big difference for me!
I retired early and went back to work part-time, but I never saw more than $600 bucks. Pay rent off that. Oh yeah, been working since I was16. Something stinks.
Yes, well said. I was hoping you would explain how and why I'm paying federal tax on my Social Security as I am working after full retirement. In 2022 I paid $1500 in federal taxes (1/2 was not refunded from my W2 & I owe the additional).
Makes no sense to say they are not counting money earned prior to taking ss if they ask you how much you earn for the entire year which is what they will see when they get your W2.
If F.R.A. is 66 and 6 months, does the earning limit cover the calendar year or only the time before 66 and 6? My wife still works p/t and will hit the limit next week but hit her F.R.A. 2 months ago.
I would like to clarify what I thought you said. At full retirement age, what is the most you can earn without a reduction in benefits? I thought at 67 there was no limit.
After the month that you reach your full retirement age there is no limit. But the limit on your earnings for the months before full retirement age is $56,520 (for 2023). So if you turn 67 in September then you could earn as much as you want Oct-Dec of that year with no reduction. If you earn above $56,520 Jan - Sept of that year then your benefits would be reduced.
@@RootFP SSA Customer service don't seem to know these facts. They are still talking about monthly limits up to the month of FRA. Which one is correct? Annual or Monthly limit?
So, I started Social Security at my FRA on April, 2024. I also kept working and just completed the 2024 year which is one of my highest earning 35. When would I expect see the increase in my monthly benefit checks?
I need a video on 1009 employment while collecting SS early before the year of full retirement age???? Can I really only work 45 hours per MONTH??? Why isn’t the income limit used instead when we live in a gig economy?
Looking for advice. I've done well, I'm retired, and believe I'm all set. The advice is truly about a friend. I recently reconnected with a HS friend I haven't seen in 30 years. He's a little older and I asked when he was going to retire. He admitted to having no savings and $150K variable interest mortgage. He grosses about $75K and lives in a small town in Northern Wisconsin. Here's my thoughts and I'd love feedback. He's in his Full Retirement Year so shouldn't have an issue with his salary / social security payment. I get Social Security grows 8%/yr. But if he started taking it now and applied all of it to his mortgage payment plus the additional he is paying now, he could have the mortgage paid off in 4 - 5 years. When he's 70 -71. Then work one more year putting his social security and paid off mortgage payment in the bank. I believe being debt free and having $60K - $80K in the bank would allow him to be able to live on his social security payment. Thoughts?? Thanks!!
Great Video! Thanks! I’ll be 62 in 2025 and I’m planning to retire at 62. I have a Dual Citizenship so I’ll be moving to Spain and keep working but for a Spaniard company while receiving my SS. What will be my earning limit while living & working abroad???
@ 63y/o in July of this year I started receiving SSI. But was told later that the 30K that I made up until then PUT me over. So I withdrew. I think its possible the Gov't employee was wrong.
James how about county pensions are they considered earnings? If that’s the case would ss withhold a dollar for every dollar ss benefit? I’m only 63. Pls let me know. Thanks!
I started collecting at age 62 while working part time while keeping my earnings under the limit. I have done this for 10 years now and planning to retire soon. What happens to the social security taxes withheld by my employer for the last 10 years? Does that benefit get paid back to me?
Are you sure about how they deduct for making over the limit? SSA told me they stop benefits until they are paid back. So in your example of receiving $1500 in SS per month, they would stop your payments for 2 months to get back the $3000. They will also do the same if you tell them you plan to make $6000 more. If you know otherwise, please share the link to SSA showing the rule. I thought it was like you said, but was told differently by an agent at SSA.
So I don't know if you answer questions or not but if you do.......my question is I'm currently 65 and my FRA is 66 and 10 months. That will happen June 2026. My question is I know I can make 60k or so and collect in 2026. What if I started to take it January 1, 2026 and July 1 is when I can make as much as I want or does that whole year of 2026 count for 60K (or so) and less? I turn 66 September 2025.
Working at 65 and not collecting SS no benefit for me to collect my SS because they will tax about 80% of it. Plus I would be locked into a smaller benefit for the rest of my life.
What gets me, is not only is Social Security a NEGATIVE RETURN on my investment: then I get PENALIZED by when I draw from it and HOW MUCH I EARN at my job really stinks like a skunk!
I’m 63. Retiring this year. I’m a surgical nurse. I could work full time part time on call-I’ll still be over the limit at on call per Diem or call back pay- doesn’t matter/- I’m OUT2025
I received an overpayment notice. I just got one of those letters yesterday. They said since I made so much in 2023, I need to repay all of the payments from may-december. My question is, The money I made in 2023 was PRIOR to me applying for and receiving my ssa benefit. I thought it would not count since I made that money before I even applied for ssa? Am I wrong? Even on my 1099k form, it shows my income from may -december at $0.
I am 62, and l will be getting 108,00 per month when i applied i was still working making 32000 a yr,if i start working and make under the earnings limit, will my benefits be more?
if you have a disabled or special needs child (even adult child) that child will receive something like half if you start taking SS. That could mean an increase over your child's current benefits. According to the social security website, it seems (DON'T RELY ON ME FOR THIS - I need to doublecheck) the child will continue to receive healthcare benefits
question, my estimate social security monthly payment is $1444.00, which is $17.328 annually, I'm currently working at a job with an monthly income of $3200.00, and want to keep it, and file for social security in a couple of months, how much would I recieve from social security ?
Assuming you're not yet 67, You make $3,200x12=$38,400 year. The current earnings limit is $22,320. So $38,400-$22,320= $16,080 over. Divide that by 2 you get $8,040. So you're being penalized $8,040 per year which divided by 12 = $670 per month. So $1,440-$670 would leave you with a $770/month benefit. If you're retirement age, you get the full $1,440.
A little confused--so... if I'm at FRA at 67 and want to continue to work. What happens? I'm assuming my social security amount doesn't change and nothing changes--no penalty at all?? I'll continue to have FICA taxes taken out? thx
Actually, your benefit could go up, if what you’re earning now is greater than your inflation adjusted income from one of your earlier “35 highest income years.” If it is, your SS will be recalculated and increase.
Is there any point that I can make as much as I wish and still receive my full Social Security benefits. Currently I’m making $200,000 a year. And I am 62 years old.
After the month that you reach your full retirement age there is no limit. But the limit on your earnings for the months before full retirement age is $56,520 (for 2023). So if your FRA is 67 and if you turn 67 in September then you could earn as much as you want Oct-Dec of that year with no reduction. If you earn above $56,520 for Jan - Sept of that year then your benefits would be reduced.
By your definition of earnings - If I retire at 62 and take distributions from my 401K, are you saying this distribution $$ does not count? I watched another video by a CPA and his illustrations uses the term "combined income" and he states all income counts, not just "earned" income. And if the retiree combined income exceeds the income thresholds, the SSI $$ can be taxed up to 50-80%. Is there a difference between the two? I'm confused!
if you’re working in a good job that pays say $80,000 a year why would you start collecting SS at 62? I mean you’d be way over the 21,000 it wouldn’t be worth it so basically you’d have to be able to just retire fully at 62 and not work at all. I mean you keep saying start collecting Social Security at 62. Let’s say you’re making 29,000. it’s gonna be deducted etc why would you start collecting Social Security if you’re only making 29,000 a year. You can’t even live off for $29,000 a year plus Social Security with today’s cost.
You're making zero sense. In your example you say someone can earn $27,240 per month and only exceed the monthly social security income limit by $6000. WTF are you talking about? Is this channel for real?
file a federal tax return as an "individual" and your combined income* is between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits. more than $34,000, up to 85 percent of your benefits may be taxable.
I'm 62 in 5 months and looking at this really hard. This video was super helpful.
I will be 62 in November. Happy Birthday in 5 months and good luck, May we both make the right decision for each of us!
I took SS at 62. Did the math, paid off all unsecured debt, circled my investment wagons, and have zero regrets.
Great Job! You have a very clear and articulate approach to communication. It's appreciated!
I appreciate that!
great info- quick comment though: at 2:36 your example w.r.t. earnings limit is $27,240 PER MONTH earnings (above and beyond $1500/month social security), I think that was meant to be an ANNUAL earnings example, not monthly?
Right. That was what I was going to post regarding this scenario.
I saw that too. OOPS!!
GREAT WORK, I WATCHED A LOT OF VIDEOS ABOUT THIS SUBJECT, NO ONE, i MEAN, NO ONE, ANSWER THE QUESTION CORRECTLY., MEANING THEY DID NOT TACKLE THE SUBJECT IN FULL. THANK YOU.
You left out the option of collecting at full retirement age while continuing to work, and how SSA will increase your monthly payment based on recalculating your highest 35 years of income.
At 3:44 you say there is an earnings limit on Social Security benefits at full retirement age. But that's not correct for anyone who STARTS collecting at full retirement age. There's no earnings limit on Social Security earnings in that case. So perhaps you meant to say that the earnings limit changes to a higher limit at full retirement age for people who STARTED collecting benefits BEFORE retirement age? It's not clear in the video.
This was the very best description of how this works. Thank you! Smart guy!
Great video, James. Thank you! :) I've been unsuccessful in finding an answer to the following... For the earnings test, is the gross dollar amount of wages used as earnings, or are earnings based on AGI? Or another figure, e.g., taxable SS wages? This makes a pretty big difference for me!
I believe it is the gross amount of wages not AGI.
You mentioned suspending your benefits and then each year you get 8% more, but you didn't mention that the 8% increase stops when you turn 70.
Where are you going to get Medical Coverage when you collect benefit atage 62?
Really excellent information 👍👍
Thank you!
Best explanation of the benefits
Thanks for the information !!!
I retired early and went back to work part-time, but I never saw more than $600 bucks. Pay rent off that. Oh yeah, been working since I was16. Something stinks.
I never thought about collecting at 62. But after watching this video. I may want to. I still need to do the math.
Nice video. Thanks. Can one not take benefits and delay further? Will benefits go up?
Yes, well said. I was hoping you would explain how and why I'm paying federal tax on my Social Security as I am working after full retirement. In 2022 I paid $1500 in federal taxes (1/2 was not refunded from my W2 & I owe the additional).
Makes no sense to say they are not counting money earned prior to taking ss if they ask you how much you earn for the entire year which is what they will see when they get your W2.
Yeah. Thank you for shinning the light on things they never wanted us to know😮I bet many of the ssi workers don't even know themselves 😢
yep, my homey under reported and he got nailed and did not have the cashola to pay it back and. . .
If F.R.A. is 66 and 6 months, does the earning limit cover the calendar year or only the time before 66 and 6? My wife still works p/t and will hit the limit next week but hit her F.R.A. 2 months ago.
I'm self employed. When guessing how much I would earn for the year would that amount be gross or net?
earnings limit. does this include receiving a federal pension as income?
at 2:43, isn't that supposed to be $27,240 for the entire year? or 2270 per month?
I would like to clarify what I thought you said. At full retirement age, what is the most you can earn without a reduction in benefits? I thought at 67 there was no limit.
After the month that you reach your full retirement age there is no limit. But the limit on your earnings for the months before full retirement age is $56,520 (for 2023). So if you turn 67 in September then you could earn as much as you want Oct-Dec of that year with no reduction. If you earn above $56,520 Jan - Sept of that year then your benefits would be reduced.
@@RootFP SSA Customer service don't seem to know these facts. They are still talking about monthly limits up to the month of FRA. Which one is correct? Annual or Monthly limit?
That's not what they did to me. SSA collected the overage and until it was paid off my benefits were suspended.
So, I started Social Security at my FRA on April, 2024. I also kept working and just completed the 2024 year which is one of my highest earning 35. When would I expect see the increase in my monthly benefit checks?
Is that earning limit a year or month?
I need a video on 1009 employment while collecting SS early before the year of full retirement age???? Can I really only work 45 hours per MONTH??? Why isn’t the income limit used instead when we live in a gig economy?
Looking for advice. I've done well, I'm retired, and believe I'm all set. The advice is truly about a friend. I recently reconnected with a HS friend I haven't seen in 30 years. He's a little older and I asked when he was going to retire. He admitted to having no savings and $150K variable interest mortgage. He grosses about $75K and lives in a small town in Northern Wisconsin. Here's my thoughts and I'd love feedback.
He's in his Full Retirement Year so shouldn't have an issue with his salary / social security payment. I get Social Security grows 8%/yr. But if he started taking it now and applied all of it to his mortgage payment plus the additional he is paying now, he could have the mortgage paid off in 4 - 5 years. When he's 70 -71. Then work one more year putting his social security and paid off mortgage payment in the bank. I believe being debt free and having $60K - $80K in the bank would allow him to be able to live on his social security payment. Thoughts?? Thanks!!
Great Video! Thanks!
I’ll be 62 in 2025 and I’m planning to retire at 62. I have a Dual Citizenship so I’ll be moving to Spain and keep working but for a Spaniard company while receiving my SS. What will be my earning limit while living & working abroad???
@ 63y/o in July of this year I started receiving SSI. But was told later that the 30K that I made up until then PUT me over. So I withdrew. I think its possible the Gov't employee was wrong.
James how about county pensions are they considered earnings? If that’s the case would ss withhold a dollar for every dollar ss benefit? I’m only 63. Pls let me know. Thanks!
For me, not decades, only the past 6 yrs. Unmarried for all my life I rely on myself.
I started collecting at age 62 while working part time while keeping my earnings under the limit. I have done this for 10 years now and planning to retire soon. What happens to the social security taxes withheld by my employer for the last 10 years? Does that benefit get paid back to me?
If you are 1 year from full retirement and are currently on worker compensation can I apply for social security before workers compensation ends?
Just to clarify - in the example he said $27,400 per month? Or did he mean per year?
Do annual earnings include employer contributions to 401k?
@2:44 you say earning $27,000 per month. Did you mean $2,700?
Are you sure about how they deduct for making over the limit? SSA told me they stop benefits until they are paid back. So in your example of receiving $1500 in SS per month, they would stop your payments for 2 months to get back the $3000. They will also do the same if you tell them you plan to make $6000 more. If you know otherwise, please share the link to SSA showing the rule. I thought it was like you said, but was told differently by an agent at SSA.
So I don't know if you answer questions or not but if you do.......my question is I'm currently 65 and my FRA is 66 and 10 months. That will happen June 2026. My question is I know I can make 60k or so and collect in 2026. What if I started to take it January 1, 2026 and July 1 is when I can make as much as I want or does that whole year of 2026 count for 60K (or so) and less? I turn 66 September 2025.
Working at 65 and not collecting SS no benefit for me to collect my SS because they will tax about 80% of it. Plus I would be locked into a smaller benefit for the rest of my life.
What gets me, is not only is Social Security a NEGATIVE RETURN on my investment: then I get PENALIZED by when I draw from it and HOW MUCH I EARN at my job really stinks like a skunk!
I’m 63. Retiring this year. I’m a surgical nurse. I could work full time part time on call-I’ll still be over the limit at on call per Diem or call back pay- doesn’t matter/- I’m OUT2025
age 77 back to work part time not going to make the 23k allowed. You will also be contributing to SS. Again. How does that work
I received an overpayment notice. I just got one of those letters yesterday. They said since I made so much in 2023, I need to repay all of the payments from may-december. My question is, The money I made in 2023 was PRIOR to me applying for and receiving my ssa benefit. I thought it would not count since I made that money before I even applied for ssa? Am I wrong? Even on my 1099k form, it shows my income from may -december at $0.
I am 62, and l will be getting 108,00 per month when i applied i was still working making 32000 a yr,if i start working and make under the earnings limit, will my benefits be more?
You can’t work whatever you want to after retirement age???
if you have a disabled or special needs child (even adult child) that child will receive something like half if you start taking SS. That could mean an increase over your child's current benefits. According to the social security website, it seems (DON'T RELY ON ME FOR THIS - I need to doublecheck) the child will continue to receive healthcare benefits
question, my estimate social security monthly payment is $1444.00, which is $17.328 annually, I'm currently working at a job with an monthly income of $3200.00, and want to keep it, and file for social security in a couple of months, how much would I recieve from social security ?
Assuming you're not yet 67,
You make $3,200x12=$38,400 year.
The current earnings limit is $22,320.
So $38,400-$22,320= $16,080 over. Divide that by 2 you get $8,040.
So you're being penalized $8,040 per year which divided by 12 = $670 per month.
So $1,440-$670 would leave you with a $770/month benefit.
If you're retirement age, you get the full $1,440.
A little confused--so... if I'm at FRA at 67 and want to continue to work. What happens? I'm assuming my social security amount doesn't change and nothing changes--no penalty at all?? I'll continue to have FICA taxes taken out? thx
FICa taxes out on earned income
Actually, your benefit could go up, if what you’re earning now is greater than your inflation adjusted income from one of your earlier “35 highest income years.” If it is, your SS will be recalculated and increase.
Supposedly your ssa amnt will go up. How ? How much ? No one seems to know.
Is there any point that I can make as much as I wish and still receive my full Social Security benefits. Currently I’m making $200,000 a year. And I am 62 years old.
I believe at 70 there is no limit on income while receiving SSI. Maybe Mr. Canole can verify this.
After the month that you reach your full retirement age there is no limit. But the limit on your earnings for the months before full retirement age is $56,520 (for 2023). So if your FRA is 67 and if you turn 67 in September then you could earn as much as you want Oct-Dec of that year with no reduction. If you earn above $56,520 for Jan - Sept of that year then your benefits would be reduced.
By your definition of earnings - If I retire at 62 and take distributions from my 401K, are you saying this distribution $$ does not count?
I watched another video by a CPA and his illustrations uses the term "combined income" and he states all income counts, not just "earned" income. And if the retiree combined income exceeds the income thresholds, the SSI $$ can be taxed up to 50-80%.
Is there a difference between the two? I'm confused!
It's very hard for me to trust someone SO YOUNG & soooo far himself from being a senior OR retirement
if you’re working in a good job that pays say $80,000 a year why would you start collecting SS at 62? I mean you’d be way over the 21,000 it wouldn’t be worth it so basically you’d have to be able to just retire fully at 62 and not work at all. I mean you keep saying start collecting Social Security at 62. Let’s say you’re making 29,000. it’s gonna be deducted etc why would you start collecting Social Security if you’re only making 29,000 a year. You can’t even live off for $29,000 a year plus Social Security with today’s cost.
Yep and screw over survivor benifits
You're making zero sense. In your example you say someone can earn $27,240 per month and only exceed the monthly social security income limit by $6000. WTF are you talking about? Is this channel for real?
file a federal tax return as an "individual" and your combined income* is
between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
more than $34,000, up to 85 percent of your benefits may be taxable.