Social Security is usually seen as a source of retirement income. But you're allowed to work and have Social Security retirement benefits or survivor benefits at the same time. If you lot practise so earlier you reach full retirement age, though, Social Security may withhold office of your benefits.

Below we'll cover how you can go Social Security benefits even while you lot're nevertheless working. Learn how you can keep as 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 all the same receive Social Security?

When you lot take benefits while you're still working, Social Security may withhold part of your benefit depending on your income if you haven't reached full retirement historic period. Your full retirement age is betwixt 66 and 67 if you were born from 1943 to 1959; it'due south 67 if you were built-in in 1960 or after.

Social Security will withhold benefits at the following rates in 2022:

  • $1 for every $ii of earned income above $xviii,960 until the year you reach total retirement age. Allow'southward say you're 64 and earn $20,000 from working, and you're already getting benefits. Yous've earned $1,040 in a higher place the earnings limit, so Social Security would withhold $520 from your benefit.
  • $one for every $3 of earned income higher up $50,520 the year you achieve full retirement age until the month earlier you're eligible for your total benefit. Suppose you lot reach full retirement age in Oct. Social Security would merely reduce your benefits if y'all earned more than $50,520 between Jan and September.

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

The cardinal to understanding Social Security's rules about working and benefits is that everything changes when you reach the date when you tin can fully retire. Later that indicate, yous can earn every bit much as yous want and even so go on all your benefits. Earlier, though, yous can requite up some of your benefits.

Tin can y'all get your total benefit if you lot're all the same working?

If you've reached total retirement historic period and you're yet working, you lot don't need to worry nigh any earnings limits. Social Security will not withhold money from your monthly benefit. Social Security as well won't accept money out of your checks if y'all claim early merely 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 lot'll forfeit and then takes information technology out of your monthly benefits. You lot'll encounter entire monthly checks held back by the regime to comprehend the withholding. For instance, if yous normally get Social Security of $1,000 per calendar month only you have to forfeit $4,000, and so Social Security will concord dorsum iv months' worth of checks.

As painful as it is to lose your benefits, at that place is some payback. If you lose a month's worth of benefits, then Social Security treats you as if you retired a month later than you did. One time you hitting total retirement historic period, y'all'll start getting larger monthly checks based on that afterward retirement date. You lot might non go all your lost money back, but the bigger checks will gradually send some of it your way.

Are your Social Security benefits taxed if y'all're yet working?

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

Whether you're nevertheless employed or y'all're a retiree, you'll pay taxes on up to 85% of your Social Security benefit if:

  • You're single with a taxable income of $34,000 or higher.
  • Yous're married filing jointly with a combined taxable income of $44,000 or higher.

You'll pay taxes on up to 50% of your Social Security benefit if:

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

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

What if I stop working in the heart of the year?

At that place's a special dominion for when y'all work part of the year but then retire. Regardless of your total earnings, yous're still entitled to become Social Security checks for any month in which y'all've officially retired.

As an instance, say you retire early at 63 and decide that you're going to quit your $200,000-per-year job at the stop of June. You'd forfeit all of your benefits for the first six months of the year because of your high earnings, but, starting in July, you could still get 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 work?

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

Unlike the retirement benefit rules, there's no phaseout for losing disability benefits. Earn a single $one to a higher place the limit, though, and you lose every penny of what you become from Social Security Disability. If you make less than the amounts above, and so you go along full benefits, simply, if you make more, and then you lose all of your disability benefits.

However, Social Security allows disabled workers a nine-month trial menstruum to examination their ability to work. During this flow, you're allowed to collect your full benefit no matter how much y'all earn, every bit long equally y'all report the income and still have a inability.

If you receive Supplemental Security Income (SSI), your benefits are reduced by $0.l for every dollar you earn higher up $85 in 2022.

Should I work and have Social Security?

If you want to maximize your monthly Social Security checks, the simplest retirement strategy is to expect until full retirement age before claiming your benefits. That manner, 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 however some things yous tin can exercise. For many, challenge at the offset of the year in which you'll achieve full retirement age works out fine because the higher earnings limits arrive less likely that you'll give up your Social Security.

Finally, if y'all're expecting to work on a role-time basis, it'southward smart to look at the earnings limits and how they compare with your pay. If information technology looks like yous might trigger the provisions, then you might determine to work a little less to keep all your benefits.