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 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!
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.
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).
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!!
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.
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.
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?
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?
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 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.
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.
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
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.
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.
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.
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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!
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 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.
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.
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).
Nice video. Thanks. Can one not take benefits and delay further? Will benefits go up?
Best explanation of the benefits
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.
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!!
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.
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.
Really excellent information 👍👍
Thank you!
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?
That's not what they did to me. SSA collected the overage and until it was paid off my benefits were suspended.
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?
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'm self employed. When guessing how much I would earn for the year would that amount be gross or net?
Is that earning limit a year or month?
Do annual earnings include employer contributions to 401k?
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.
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.
at 2:43, isn't that supposed to be $27,240 for the entire year? or 2270 per month?
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
@2:44 you say earning $27,000 per month. Did you mean $2,700?
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.
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.
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.