The National Directory of Certified Public Accountants

Ask A CPA - Taxes - My Tax Return

Social Security Benefits Reduction - Younger Than 65 And Earning Wages

If you are under full retirement age for the entire year, SSA deducts $1 from your benefit payments for every $2 you earn above the annual limit. For 2012, that limit is $14,640 ($14,160 in 2011). In the year you reach full retirement age, SSA deducts $1 in benefits for every $3 you earn above a different limit, but we 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 ($37,680 in 2011). (If you were born in 1945 or 1946, your full retirement age is 66 years.). Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.

If you need professional help with "Taxes - My Tax Return" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.