Social Security is ordinarily seen as a source of retirement income. But yous're allowed to work and take Social Security retirement benefits or survivor benefits at the aforementioned time. If you lot do so before you accomplish total retirement age, though, Social Security may withhold part of your benefits.

Below we'll embrace how yous tin get Social Security benefits even while y'all're still working. Learn how yous tin can keep every bit much of that money as possible.

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

Image source: Getty Images.

How much can you earn and still receive Social Security?

When you take benefits while yous're all the same working, Social Security may withhold office of your benefit depending on your income if you oasis't reached full retirement age. Your full retirement historic period is betwixt 66 and 67 if you were born from 1943 to 1959; it's 67 if you were built-in in 1960 or later on.

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

  • $1 for every $ii of earned income in a higher place $xviii,960 until the twelvemonth y'all reach total retirement age. Allow'south say you lot're 64 and earn $xx,000 from working, and you're already getting benefits. Y'all've earned $1,040 above the earnings limit, and then Social Security would withhold $520 from your benefit.
  • $1 for every $iii of earned income above $fifty,520 the yr yous reach full retirement age until the month earlier you're eligible for your total do good. Suppose you reach full retirement age in October. Social Security would simply reduce your benefits if you earned more than $l,520 between January and September.

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

The key to understanding Social Security's rules well-nigh working and benefits is that everything changes when yous reach the date when you can fully retire. Afterward that signal, you can earn as much as you want and still keep all your benefits. Earlier, though, you tin give upwards some of your benefits.

Tin you become your full do good if yous're still working?

If you've reached total retirement historic period and you're all the same working, you don't need to worry about whatever earnings limits. Social Security will not withhold money from your monthly do good. Social Security also won't have money out of your checks if y'all claim early but your income is below the thresholds listed in a higher place.

What happens to the money Social Security withholds?

The Social Security Administration calculates the appropriate amount that you'll forfeit and so takes information technology out of your monthly benefits. You'll run across entire monthly checks held back by the authorities to encompass the withholding. For case, if you normally get Social Security of $one,000 per calendar month but you have to forfeit $four,000, then Social Security will concur back 4 months' worth of checks.

As painful as it is to lose your benefits, there is some payback. If yous lose a month'due south worth of benefits, then Social Security treats you as if you lot retired a month afterward than you did. In one case y'all hit full retirement historic period, you'll start getting larger monthly checks based on that after retirement date. You might not go all your lost money back, just the bigger checks will gradually transport some of it your way.

Are your Social Security benefits taxed if yous're nonetheless working?

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

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

  • You'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 higher.

Y'all'll pay taxes on upward to 50% of your Social Security benefit if:

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

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

What if I stop working in the centre of the twelvemonth?

There'south a special rule for when you work office of the year merely then retire. Regardless of your full earnings, you're nonetheless entitled to get Social Security checks for any calendar month in which y'all've officially retired.

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

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

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

Dissimilar the retirement benefit rules, there's no phaseout for losing disability benefits. Earn a single $i above the limit, though, and you lose every penny of what you lot get from Social Security Disability. If you make less than the amounts above, then you keep full benefits, but, if you make more, then you lose all of your inability benefits.

However, Social Security allows disabled workers a nine-calendar month trial period to test their ability to work. During this period, y'all're allowed to collect your full benefit no matter how much y'all earn, as long every bit yous study the income and still take a inability.

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

Should I piece of work and have Social Security?

If you want to maximize your monthly Social Security checks, the simplest retirement strategy is to wait until total 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 option, there are yet some things you tin can do. For many, claiming at the get-go of the year in which you'll reach full retirement age works out fine because the college earnings limits make it less probable that you lot'll give up your Social Security.

Finally, if you're expecting to work on a part-time basis, information technology'south smart to expect at the earnings limits and how they compare with your pay. If it looks like you might trigger the provisions, then you lot might decide to work a niggling less to keep all your benefits.