Social Security PSA
Apr. 29th, 2023 03:38 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
ny_quantTIL:
If you're receiving benefits while still working before your full retirement age, you may have to give back some money if you earn above certain limits that change every year. Here are the rules for 2023:
If you'll be younger than your full retirement age for the full year, Social Security will withhold $1 in benefits for every $2 you earn above $21,240.
In the year you reach your full retirement age, Social Security will withhold $1 for every $3 you earn above $56,520.
There's a special rule for the first year you receive benefits, aimed to help people who retire mid-year and have, up to that point, earned income above the limits. See page 5 of "How Work Affects Your Benefits" from the Social Security Administration for details.
The good news is that, once you reach your full retirement age, the Social Security Administration will begin to gradually return that withheld money by increasing your monthly benefit. It'll take a few years to get it all back, but the money wasn't lost forever.
Furthermore, if the annual amount you earn is among the 35 highest-income years of your career, the Social Security Administration will recalculate (i.e., increase!) your payment -- even after you've begun receiving benefits.
Note: If you go back to work before your full retirement age while receiving benefits, and you expect to earn above the annual limits, notify the Social Security Administration so that they will reduce your payments. Otherwise, be prepared to write a big check to Uncle Sam for the "overpayment" when he figures it out, likely sometime after you've filed your taxes.
If you're receiving benefits while still working before your full retirement age, you may have to give back some money if you earn above certain limits that change every year. Here are the rules for 2023:
If you'll be younger than your full retirement age for the full year, Social Security will withhold $1 in benefits for every $2 you earn above $21,240.
In the year you reach your full retirement age, Social Security will withhold $1 for every $3 you earn above $56,520.
There's a special rule for the first year you receive benefits, aimed to help people who retire mid-year and have, up to that point, earned income above the limits. See page 5 of "How Work Affects Your Benefits" from the Social Security Administration for details.
The good news is that, once you reach your full retirement age, the Social Security Administration will begin to gradually return that withheld money by increasing your monthly benefit. It'll take a few years to get it all back, but the money wasn't lost forever.
Furthermore, if the annual amount you earn is among the 35 highest-income years of your career, the Social Security Administration will recalculate (i.e., increase!) your payment -- even after you've begun receiving benefits.
Note: If you go back to work before your full retirement age while receiving benefits, and you expect to earn above the annual limits, notify the Social Security Administration so that they will reduce your payments. Otherwise, be prepared to write a big check to Uncle Sam for the "overpayment" when he figures it out, likely sometime after you've filed your taxes.
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no subject
Date: 2023-04-30 09:56 pm (UTC)знал про SSI, там вообще 100%, но это другое дело, SSI пособие не заработанное, в отличие от обычного заработанного SS
(но все равно считаю, что 100% - глупо и аморально, в Израиле, если не ошибаюсь, 60% для незаработанного пособия по старости и бедности, и только выше определенного минимума, как здесь "above $21,240")