Collecting Social Security benefits while working (friends, years, married, grandfather)

[Carolgre]

took early retirement at 62. I am now bored and looking for either part-time or possibly full time work. However, if I did work full time I understand that Social Security takes back a certain amount of money for everything earned over $12,900 (I think that number is going up slightly for 2008). My question: does Social Security stop all payments if you are making over a certain income or do you just have to pay them back at tax time? I would still like to receive my monthly SS benefits and know that at the end of the year I would have set aside a certain amount of money to pay them back in taxes rather than have my benefits stopped totally.

Any advice would be greatly appreciated.

[Waterlily]

Alright you may as well read this Social Security: Don't sweat the payroll - Nov. 15, 2007

That'll explain it. They take $1 out for every $2 your earn over the limit. This limit goes up for those 62 years old and drawing S.S. to $13,560 next year. That's good.

[katie45]

Here is the s/s link with information regarding working at age 62 while collecting benefits:
You can work and get Social Security at the same time

I believe the reduced benefit would be deducted from each month's payment; but to be certain, I'd check with your local s/s office.

[somwhathip]

Interesting, your question turns out to be the number 1 most frequently asked question about social security. Today's Wall Street Journal has a great article "The Baby Boomers Guide to Social Security". There is a podcast and a video that you can listen to/watch that explains lots about how to apply and when to apply. That info is at wsj.com/reports
The full article is at The Baby Boomer's Guide To Social Security - WSJ.com

[Tressa]

According to the publication recently posted, they will continue to take $1 for every $2 until you reach 66 years of age, at that point you receive full benefits and can work as much as you want. I was researching this for some friends that decided to go the route your going.

[smithlp63]

What happened to me is, I sent in an honest estimate for my earnings for 2008. SSA figured out how much I was over the allowed income of 13560 divided that figure by 2 and stopped my monthly benefits until the amount withheld surpassed that figure. For me that was three months benefits. So my suggestion to anyone reading this is to estimate less and pay them back after you have earned the money. I feel they are taking money from my benefits for money that I have not yet earned. That's like having taxes withheld for money you haven't earned.

[texangelwings]

When I took my widows SS last year at 60 yoa, the SS personnel told me that I was eligible to earn $1,100. SS overpaid my husband, even though he answered their questions about his year-end income, I had to pay them back. It is better if a person retires sometime in January, to prevent having to pay SS back.

SS sure has changed the rules. My grandfather was working in a hospital, setting people in traction, when at 70 yoa ,then the personnel director informed him "he had to retire, because he was too old to be working".

[rferd]

What about if you work for a few months and then request SS at the assigned age? Will they take money out even when one was not receiving (actually paying) SS yet?

[Keeper]

rferd.. you get 'your SS income' it is based on what you made if you are married, if you are a widow/widower and take your SO SS security before you are eligible then they count what you made from January.

[rferd]

Thanks Keeper. That means that I will get my regular salary first quarter and then, come April 1st I will get my full SS income (since I will be 66 then). How sweet it is!