age for unlimited income for social security
For January and February of 2011, she must give up $309 of social security ($1 for every $3 her business earns over $34,440 in the year she reaches full social security retirement age) and once March 2011 arrives and she becomes 66, she can earn unlimited amounts from her business and will never give up any social security income. Mrs. Smith, age 62 in March of 2007, decides to retire from employment and start her reduced social security retirement benefits at the rate of $12,000 annually ($1,000 per month). She also decides to start a business. By age 63, her business is earning a net profit of $20,000 annually. Once you have reached full retirement age (FRA), which is unique to your personal birthday, and can be found at http://www.ssa.gov/pubs/ageincrease.htm, and have earned substantial income, not including your social security benefits, your social security benefits can be taxed up to 85%. 1 If you reach full retirement age during. 2017, 2  we must deduct $1 from your. benefits for each $3 you earn above. $44,880 until the month you reach full. retirement age. 3  These examples show how the. rules would affect you:  Let’s say that you file for Social Security. benefits at age 62 in January 2017 and. your payment will be $600 per month. ($7,200 for the year). During 2017, you. plan to work and earn $22,000 ($5,080. above the $16,920 limit). She will need to give up $3,520 of her annual social security retirement income for this reason: During those months before you reach full retirement age (age 66 for someone born in 1945 like Mrs. Smith), your social security benefits are reduced $1 for each $2 you earn over $12,960 (for 2007). If you file individually and your combined income is less than $25,000 you will not pay taxes on your social security benefits; married filing jointly with a combined income less than $32,000 no taxes will be due for the benefits. If you have not reached your FRA and are receiving social security benefits along with earnings from work, the benefits may be reduced. If you are younger than your FRA benefits will be reduced $1 for every $2 earned over the annual limit ($15,120 for 2013). People who are at full retirement age can make as much money as they want and not be penalized by Social Security, the agency’s website notes. Full retirement age is based on the year you were born. For people born before 1943, the full retirement age is 65 years. For those born between January 2, 1943, and January 1, 1955, the full retirement age is 66. The full retirement age increases gradually to 67 years between January 2, 1955, and 1960, Social Security says. If you’re younger than. full retirement age, there is a limit to how. much you can earn and still receive full. 2. Social Security benefits. If you’re younger. than full retirement age during all of 2017, we must deduct $1 from your benefits for. Avoiding the Earnings Penalty. After full retirement age, you can earn as much as you want. by Stan Hinden, AARP Bulletin, Updated February 2012|Comments: 0. En español | Q. I'd like to know when I can take my Social Security and continue to earn as much money as I want without losing any of my benefits. I was born on April 28, 1946.
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