Social Security is commonly seen as a source of retirement income. But you're allowed to work and accept Social Security retirement benefits or survivor benefits at the same fourth dimension. If you practice so earlier you reach full retirement age, though, Social Security may withhold part of your benefits.

Below we'll cover how you tin can get Social Security benefits even while y'all're withal working. Larn how you can go on equally much of that money every bit possible.

A Social Security card slid into a spread-out pile of money.

Image source: Getty Images.

How much can you earn and even so receive Social Security?

When yous have benefits while yous're notwithstanding working, Social Security may withhold office of your benefit depending on your income if yous haven't reached full retirement age. Your full retirement age is between 66 and 67 if you were built-in from 1943 to 1959; information technology'due south 67 if yous were born in 1960 or later.

Social Security will withhold benefits at the post-obit rates in 2022:

  • $1 for every $2 of earned income to a higher place $xviii,960 until the yr you reach full retirement historic period. Permit's say you're 64 and earn $20,000 from working, and you're already getting benefits. You've earned $1,040 above the earnings limit, so Social Security would withhold $520 from your benefit.
  • $one for every $3 of earned income above $l,520 the year you reach full retirement age until the month earlier you're eligible for your total benefit. Suppose you attain full retirement age in Oct. Social Security would only reduce your benefits if you earned more $l,520 between January and September.

These rules apply whether you're an older worker taking benefits based on your own work record or you're getting a spousal benefit or a survivor do good.

The fundamental to agreement Social Security'southward rules about working and benefits is that everything changes when you reach the date when yous can fully retire. After that point, you can earn as much as you want and yet keep all your benefits. Earlier, though, you can surrender some of your benefits.

Can you get your full benefit if you're however working?

If you've reached full retirement age and yous're still working, you don't need to worry near any earnings limits. Social Security volition not withhold money from your monthly do good. Social Security also won't take coin out of your checks if yous merits early merely your income is below the thresholds listed in a higher place.

What happens to the money Social Security withholds?

The Social Security Assistants calculates the appropriate amount that you'll forfeit and then takes information technology out of your monthly benefits. You'll see entire monthly checks held back by the authorities to cover the withholding. For example, if you normally become Social Security of $one,000 per month but you have to forfeit $4,000, then Social Security will hold back four months' worth of checks.

As painful equally it is to lose your benefits, in that location is some payback. If you lose a month'south worth of benefits, and so Social Security treats you lot as if you retired a month later than you did. In one case you hitting full retirement age, you'll commencement getting larger monthly checks based on that after retirement appointment. You might not become all your lost money back, but the bigger checks volition gradually send some of it your way.

Are your Social Security benefits taxed if you're still working?

If you have earnings from working or you lot accept other taxable income, such as distributions from a retirement programme, part of your Social Security may exist taxed.

Whether you're withal employed or you're a retiree, you'll pay taxes on upward to 85% of your Social Security do good if:

  • You lot're single with a taxable income of $34,000 or higher.
  • You're married filing jointly with a combined taxable income of $44,000 or college.

You'll pay taxes on upwardly to fifty% of your Social Security do good if:

  • You're single with a taxable income between $25,000 and $34,000.
  • You're married filing jointly with a combined income betwixt $32,000 and $44,000.

If your income is below these limits, you lot won't owe taxes on your Social Security.

What if I stop working in the heart of the year?

There's a special rule for when y'all piece of work part of the year only then retire. Regardless of your total earnings, you lot're yet entitled to get Social Security checks for whatsoever calendar month in which you've officially retired.

As an example, say you retire early at 63 and decide that you're going to quit your $200,000-per-year job at the terminate of June. You'd forfeit all of your benefits for the first 6 months of the year because of your high earnings, but, starting in July, you lot could still get checks for the remaining 6 months even though your total almanac earnings were well above the annual limit.

Will I lose my Social Security Disability or SSI benefits if I work?

Rules for inability benefits are completely different from retirement benefits. In club to collect disability, the Social Security Administration requires that you no longer exist able to engage in what's known as substantial gainful action. For 2022, that means earning no more than $i,310 per month unless you're blind, in which case a $2,190 monthly limit applies.

Unlike the retirement benefit rules, there'due south no phaseout for losing disability benefits. Earn a unmarried $1 higher up the limit, though, and yous lose every penny of what you get from Social Security Disability. If yous brand less than the amounts above, and so you keep full benefits, but, if you make more, and then you lose all of your disability benefits.

However, Social Security allows disabled workers a nine-calendar month trial menstruum to exam their ability to piece of work. During this period, you're allowed to collect your full benefit no affair how much you earn, every bit long as you report the income and however accept a disability.

If you receive Supplemental Security Income (SSI), your benefits are reduced past $0.50 for every dollar you earn above $85 in 2022.

Should I work and accept Social Security?

If you desire to maximize your monthly Social Security checks, the simplest retirement strategy is to await until full retirement age before challenge your benefits. That way, you'll be able to earn an unlimited amount without losing a penny of your Social Security.

If waiting that long isn't an pick, there are still some things you can do. For many, claiming at the beginning of the year in which y'all'll reach total retirement historic period works out fine because the higher earnings limits make it less probable that you'll surrender your Social Security.

Finally, if you're expecting to work on a office-time ground, it's smart to look at the earnings limits and how they compare with your pay. If information technology looks like you might trigger the provisions, then you might decide to work a little less to keep all your benefits.