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You won't - you have income. SSI is for low income disabled, etc. : Supplemental Security Income (SSI) is a United States government program that provides stipends to low-income people who are either aged (65 or older), blind, or disabled. Although administered by the Social Security Administration, SSI is funded from the U.S. Treasury general funds, not the Social Security trust fund.
My SSI report shows at 64 I can get $1865 a month at 64.
Filling out the online application is asking how much will I make in 2016.
I make $30,000 a year now ($2500 a month).
The SSI cap is $15,720 a year ($1310 a month).
I see that they will take 50% (1 dollar from every dollar) of anything over that $15,720 cap ($7860).
So,
If I file that $30,000 a year on the online application ... how do they take out that 50% ?
When would I get my first SSI check if I file to start in April 2016 ?
Would it be better if I just go part time and make my earnings $15,000 a year (below cap).
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Thanks For Any Help
I'll give you my initial idea which may not be correct as far as the numbers.
You say 50% they will keep of the overage? Why would that be $1 from every $1? Would it be 50 cents from ever dollar?
And when your SS statement said $1865 wasn't that calculated using previous years of earnings which may not include 2015 or even 2014?
So let's assume it will be $1865 and they keep 50 cents from every dollar over $15,720 = $14,280 = $7140 = $595 a month. If you keep working at the rate of $30,000 your SS might be $1865 - $595 = $1270.
$1270 + before tax $30,000 = nice income level.
You are giving up $7140 a year because your earnings is $30,000 a year. So really you are getting $22,860 from your job (before taxes on the $30,000) and 12 x $1270 for SS = $38,100 a year.
My SSI report shows at 64 I can get $1865 a month at 64.
Filling out the online application is asking how much will I make in 2016.
I make $30,000 a year now ($2500 a month).
The SSI cap is $15,720 a year ($1310 a month).
I see that they will take 50% (1 dollar from every dollar) of anything over that $15,720 cap ($7860).
So,
If I file that $30,000 a year on the online application ... how do they take out that 50% ?
When would I get my first SSI check if I file to start in April 2016 ?
Would it be better if I just go part time and make my earnings $15,000 a year (below cap).
-----
Thanks For Any Help
Ok, as you now realize, you are talking abut Social Security, not SSI.
Now, the application is asking how much you will earn in 2016. The next question is : are there any months that you will earn under $1310.00 a month? So, if you are leaving work (retiring at the end of March, you are indicating that you will "be under the limit in April, May, June...thru December. Be sure to mark that. Otherwise, SS thinks you are working every month.
Also, don't answer $30,000.00 for 2016 unless you will really earn $30000.00 before you retire. So, if you only are working through March, you will earn in 2016 $2500.00 x 3 or $7500.00. But, if you are leaving and they owe you accumulated vacation, sick, personal days etc. be sure to add those in, but you still can mark any month in which you did not work as a non-work month. The vacation etc. gets credited to the last month you actually worked.
If you truly will earn $30000.00 in 2016 and will work all months then we have to see if you are due any checks in 2016.
$30000.00 minus $15720.00 leaves $14280.00. Of the $14280.00, they don't care about $1.00 for every $2.00 so we divide it in half. That leaves $7140.00 that they care about, if you plan to work all of this year (every month).
You said your benefit in March, 2016, age 64 is $1865.00. I was able to determine that your FRA amount (age 66) is $2152.00.
At 64 (24 months early) you get 86.67% of that, or $1865.00, as you said.
However, let's look at January, 2016, as a possible, more advantageous, month of entitlement. You see, if you want to collect in this year, we need as many months as possible to "eat up" the amount you are over the SSA limit of $15720.00, or that $7140.00.
So, in January, 2016 your benefit is 85.56% of your FRA amount of $2152.00, or $1841.00 per month.
So, if you are going to work all months, we begin to hold back $1841.00 per month with January. February, another $1841.00, March another $1841, April another $1841.00.
We are done holding back the $7140.00 you are over the limit. By "we" I mean SSA.
Then you would be due your $1841.00 for May through December (8 months), which arrive June though January, 2017.
That is $1841.00 x 8 or $14728.00 in 2016 in addition to your wages of $30000.00. So your income in 2016 just went from $30000.00 to $44728.00.
Now, if you are retiring before December, 2016, you are due a check for any month in which you don't work, no matter how much you made in the other months. That is called the "monthly test" and for one year, and one year only, no matter how much you earn before retirement, it does not penalize you for benefits after retirement (as long as those months (after retirement)are under $1310.00).
So, this is a case, again, where applying in January, of your "collecting year" yields you thousands of dollars.
There is more I can add, but I don't want to overwhelm you and others.
Hope this helps. Let me know if you have further questions. I might be out for the day, but I will get back to you.
Last edited by ilovemycat; 01-14-2016 at 10:36 AM..
and scrolled to the computation of early/late retirement plug in. By putting in March 1952 as his year and dob (he said he was 64 in 2016) and March 2016 as the month he was first considering, it told me the percent of the 2 year reduction.
I did the same again by putting in January 2016 to get that percent.
Then I had to play with numbers, first by starting with around $2000 a month to see what the 86.67% would yield. I kept going higher until I got to $2152.00 which produced a matching retirement figure.
There is probably a better way to do that last step, but I don't know it.
But after FRA they don't care about your income, right? Nothing is withheld?
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