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I am planning to quit working my part-time job at the age of 64, November 2019. During 2019 I will have made $40,000 +. Is it better to wait and start claiming social security in January 2020 at 64 and 2 months of age than at 64 ? My earned income in 2020 should be less than $6,000 (carryover of leave pay, etc.). The way I read it I would not get my total benefit in November and December 2019 anyway because of my earned income that year and my social security would be slightly higher in January because of the added months?
As I understand it, the income limit only applies after you start receiving benefits. The earnings limit for 2019 is $17,640. You could earn up to $1,470 in both November and December without penalty.
I found the reference on the SSA site: https://www.ssa.gov/pubs/EN-05-10069.pdf
In 2018, a person younger than full retirement age for the entire year is considered retired if monthly earnings are $1,420 or less. For example, John Smith retires at age 62 on October 30, 2018. He will earn $45,000 through October. He takes a part-time job beginning in November earning $500 per month. Although his earnings for the year substantially exceed the 2018 annual limit ($17,040), he will receive a Social Security payment for November and December. This is because his earnings in those months are $1,420 or less, the monthly limit for people younger than full retirement age. If Mr. Smith earns more than $1,420 in either November or December, he won’t receive a benefit for that month. Beginning in 2019, only the annual limit will apply to him.
Last edited by djplourd; 12-12-2018 at 09:30 AM..
Reason: SSA info
Although the website does not explain it it is the cumulative t oral after you start collecting that counts first year . You could earn zero in nov and 2840.00 in demand still book .
I starting collecting sept . I was over 1420 in sept and oct but under in nov and dec . The total was under 1420 x4 so. I was fine
I guess I am out of luck... even though I will quit working at the beginning of November I will get a paycheck through February because of paid leaves that I am entitled too. My monthly in November and December will still be $3,000+ gross.
I guess I am out of luck... even though I will quit working at the beginning of November I will get a paycheck through February because of paid leaves that I am entitled too. My monthly in November and December will still be $3,000+ gross.
For Social Security purposes, income counts when it was earned, not when it is received. (Which is the opposite of how and when the IRS counts income.) If you retire in November and are paid for your leave the following year in January and/or February, that will not affect your SS benefits for those two months.
For Social Security purposes, income counts when it was earned, not when it is received. (Which is the opposite of how and when the IRS counts income.) If you retire in November and are paid for your leave the following year in January and/or February, that will not affect your SS benefits for those two months.
I would double check that. How would Social Security Admin know when you earned it? They only have the IRS totals to go by.
Although the website does not explain it it is the cumulative t oral after you start collecting that counts first year . You could earn zero in nov and 2840.00 in demand still book .
I starting collecting sept . I was over 1420 in sept and oct but under in nov and dec . The total was under 1420 x4 so. I was fine
MathJak:
1. Turn off the automatic word finishing thingy. It is putting in words you didn't type.
2. I thought you ran into a problem once with earning too much in a given month. Now you are saying the opposite. ?????
Ss sent me a questionnaire about 2 months after I started collecting .. it was a very simple form . It simply said check the boxes after you started collecting that you will earn more than 1420 a month . That was it . They asked for no amounts ,only check if you went over or think you will go over .
So I started in sept and I was over in sept ,over in oct ,and under in nov and dec.
So that was all they asked . They said they consider you retired and will pay a benefit for any month you are under 1420 your first year .
So I expected to lose 2 checks .
My cumulative total was under 1420 x 4 because I was over a little and then under ,but they never even asked how much I would get those months I went over . It could have been a dollar over and they would not be aware from that form ..
So I waited to be billed back . Well it never happened . I did some research on line and I forgot where I saw it but someone asked the same question. The answer from an ss expert was that although it is not stated ,if your cumulative total is less than the 1420 x4 in my case you are still okay.
I am still not sure how they know the order that income year one was received . The w2 only has a total amount including the income prior to collecting .
The only way I can see they would know when it was earned is by the fica payroll records the company sends in quarterly . Somehow maybe that is linked
Last edited by mathjak107; 12-16-2018 at 03:19 PM..
I would double check that. How would Social Security Admin know when you earned it? They only have the IRS totals to go by.
I was going to suggest that you be the one to double-check my statement since you're the one who doubts whether it's true, but since it was easy enough to do, I did it for you:
Quote:
If you worked for wages, income received after retirement counts as a special payment if the last task you did to earn the payment was completed before you stopped working.
Quote:
This example shows how we apply a special payment under Social Security rules. Mr. DeSilva retired at age 62 in November 2017 and began to receive Social Security benefits. In January 2018, Mr. DeSilva receives a check from his employer for $17,000 for his leftover vacation time. Because this is for vacation pay he earned before he retired, Social Security will consider it a special payment and won’t count it toward the earnings limit for 2018.
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