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I am 62 and applied for social security to months ago and have received my first check.
However, I have since obtained a part-time hourly job, and I know that the monthly cap for the first year is about $1,300.00. This is ABOUT (give or take about $50) how much I can expect to earn at my job. My first question is how does SS keeps track of how much I earn: Or is this up to me to make sure that I don't go over the limit?
The next question is what will happen if I DO go over the limit? Will I have to return the SS money deposited for that month, or what?
Since learning of this rule, I have advised my boss that I will need to be under a certain amount of hours per month, but as I am paid bi-weekly, there might be one months that I will receive three paychecks instead of the normal two. Will this affect how SS views my earnings for that month?
In other words, does SS look at the dates of the paychecks or is there some way of checking how much I actually earned during the month?
If anyone can answer these questions for me, I would really appreciate it!
I am 62 and applied for social security to months ago and have received my first check.
However, I have since obtained a part-time hourly job, and I know that the monthly cap for the first year is about $1,300.00. This is ABOUT (give or take about $50) how much I can expect to earn at my job. My first question is how does SS keeps track of how much I earn: Or is this up to me to make sure that I don't go over the limit?
The next question is what will happen if I DO go over the limit? Will I have to return the SS money deposited for that month, or what?
Since learning of this rule, I have advised my boss that I will need to be under a certain amount of hours per month, but as I am paid bi-weekly, there might be one months that I will receive three paychecks instead of the normal two. Will this affect how SS views my earnings for that month?
In other words, does SS look at the dates of the paychecks or is there some way of checking how much I actually earned during the month?
If anyone can answer these questions for me, I would really appreciate it!
I went through the same thing when I started getting my SS at 62. The earnings limit back then was around $12,500 a year. Sounds like yours is closer to $15,600 a year? I just worked until I got close to that $12,500 limit, took the rest of the year off and went back to work in January. I could have cut my hours and worked longer but I enjoyed those few months...and the holidays!...off every year. I always had enough money to support myself so why not?
You don't have a monthly limit but if you DO go over your yearly limit you will have to pay some of it back. I think it's two out of every three dollars over you have to pay back. I never had to because I cut if off in time. They don't care how much you make a month, only for the year. Once you hit 65 you don't have to worry about it anymore.
over the limit you have to give back 1 out of every 2 dollars .
they work off your taxes so up front if you guess , and if you guessed to low about your earning after you file your taxes you get a bill .
you are recalculated at fra and all the money you gave back is translated in to time . so if you got 12k in ss a year but gave back 6k each year they would extend your filed date out by 6 months for each year so in effect if you filed at 62 at fra they recalculate you as if you retired at 64 and not 62 since you get credit for 4 years at 6 months each .
one last point is that the year before you turn fra you can actually earn more . there is still a limit but it is much higher for that last year before you hit fra .
Thanks to those who have replied so far, but during the first year, Social Security earnings limit are per month, not per year. I had Googled before posting, but it was unclear, but after doing some more research this morning, I found the following link, which was very helpful -- especially Post #1 and Post #11. I think, based on Post #11, that I will be okay, but any potential retirees should probably read the following.
Thanks to those who have replied so far, but during the first year, Social Security earnings limit are per month, not per year. I had Googled before posting, but it was unclear, but after doing some more research this morning, I found the following link, which was very helpful -- especially Post #1 and Post #11. I think, based on Post #11, that I will be okay, but any potential retirees should probably read the following.
I have Social Security Disability and a part time job myself, and I don't trust any non Social Security websites. I suggest you only trust information from socialsecurity.gov, not any blogging sites or law firm websites, which can be inaccurate. I went back over the requirements, and for the first 9 months you work (the trial work period,) you have no limitations on income. They consider a trial work period any time your earnings exceed $810 GROSS/month. The trial work period continues until you have worked 9 months during a five year period.
After that, you have another 3 years that you can work and continue to receive benefits when your earning aren't substantial (under $1,130). I have no idea what they consider the amount between $810-$1130 to be (maybe inconsequential?)
The best thing to do is call Social Security directly. You need to inform them you have a job anyway. I called them and let them know about my job and explained to my job that I had a strict earnings cap. They have kept me under the then requirement of $780/month. SS reviewed my case a couple of months back and decided to continue my full benefits. Here is the link detailing earnings information. I find it a little confusing, so I'm going to call them myself today to see if it affects my earnings at my job this year.
ssdi has different rules then social security early retirement benefits . they are not even close to what you can do and earn and should not even be brought up in a discussion about early retirement benefits ..
they do not apply and will only confuse the op . the rules for early retirement benefits while working are pretty clear and straight forward .
[quote=mathjak107;43800124]ssdi has different rules then social security early retirement benefits . they are not even close to what you can do and earn and should not even be brought up in a discussion about early retirement benefits ..
they do not apply and will only confuse the op . the rules for early retirement benefits while working are pretty clear and straight forward .[/QUOTE]
SS didn't mention in his/her post that he/she was doing early retirement. People of any age can get disability and not everyone posts in the correct forums and since OP wasn't clear in the posts what exactly it was, I was confused. No need to be rude. I was just trying to help. I stand by my point that it's a good idea for the OP to check directly with SS resources and contact them for accurate information.
because there is such a big difference folks will almost always mention it is ssdi as opposed to retirement benefits . .
but let the op's tell us . from his description it appears to only be retirement benefits since he was working full time and told his new boss he will be cutting his hours to stay within limits . .
Thanks for the additional replies! This is some more info about me to hopefully clarify my situation.
I do not have SSDI, just "straight" social security. I applied for social security when I was about 62.5 years old, after having no income for about six years. I was going to wait to file for SS until I turned 65, but then my husband was laid off (he is in the oil and gas industry); and before that happened, I never expected to collect another paycheck. Anyway, after applying for SS, I then found a part-time job last month (which I enjoy very much, btw) that pays $11.00 per hour. When I was hired, I was told I would be working 24-30 hours per week, which has been the case, but at that time, I did not know about the monthly limit rule, and I did not find that out until my first SS payment was deposited, about a week ago which was just about three weeks after I started my job. So, finding out about the monthly limit rule was a shock to me, as I had only known about the yearly limit, and I knew I would not go over that.
So, I have now told my boss that I cannot work more than 24 hours per week, but I am wondering how SS figures monthly income. Do they go by money GIVEN in a month (i.e., date of paychecks) or by actual money EARNED in a month? (And, if it is by the monthly actually paid by the employer, then what happen when I get three bi-weekly paychecks, which will happen in July?)
Anyway, I do know that I should call SS directly, but where I live, in the Denver area, they put you on hold for about an hour -- it took me 55 minutes on hold before I could talk to anyone -- so I thought I would just post here and ask if anyone can answer my questions.
Thanks again.
P.S. My husband is almost 60 and he will receive unemployment for only about four more months (six months total), and his monthly unemployment is only about 1/4 what he was making.
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