The National Directory of Certified Public Accountants

Ask A CPA - Social Security

Social Security - Collect And Still Work Between Ages 62 And 66 Years Old

You can work while you receive Social Security retirement (or survivors) benefits. While you are working, your earnings will reduce your benefit amount only until you reach your Full Retirement Age. Social Security uses a formula to determine how much your benefit must be reduced: If you are under full retirement age (62-66) for the entire year, SS deducts $1 from your benefit payments for every $2 you earn above the annual limit. People who turn 66 in 2013 can earn up to $40,080, and then $1 of benefits will be withheld for every $3 earned above the limit. For 2012, that limit is $14,640 ($15,120 in 2013). In the year you reach full retirement age, SS deducts $1 in benefits for every $3 you earn above a different limit, but SS only count earnings before the month you reach your full retirement age. If you will reach full retirement age in 2012, the limit on your earnings for the months before full retirement age is $38,880 ($40,080 in 2013). Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.

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