Benefits Planner: Retirement | Special Earnings Limit Rule | SSA

There’s a limit on how much you can earn and still receive your full Social Security retirement benefits while working. Some people who file for benefits mid-year have already earned more than their yearly earnings limit amount. We have a special rule for this situation. The special …

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Benefits Planner | Income Taxes And Your Social Security Benefit

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About 40% of people who get Social Security must pay federal income taxes on their benefits. This usually happens if you have other substantial income in addition to your benefits. …

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FAQs about Benefits Planner: Retirement | Special Earnings Limit Rule | SSA Coupon?

Why does Social Security have a special earnings limit rule?

The special rule exists because Social Security bases the earnings limit on a full year’s income, but it recognizes that most people retire at some point mid-year and by then may have already earned more than the limit. ...

How does the special earnings limit rule work?

The special earnings limit rule works for you if you retire mid-year, and your income already exceeds the annual earnings threshold. Under the rule, you can get your full Social Security benefits for the months you’re retired, regardless of how much you earned. ...

When does the special rule apply to Social Security?

The 'Special Earnings Limit Rule' generally applies in the calendar year in which you start receiving Social Security. The rule is in place because Social Security bases the earnings limit on a full year’s income, but it acknowledges that most people retire mid-year and may have already earned more than the limit. ...

When does the earnings limit for Social Security benefits apply?

The earnings limit for Social Security benefits applies only if you are under full retirement age. If you are on Social Security for the whole year and make $30,000 from work, you are $7,680 over the limit and lose $3,840 in benefits. But suppose you earn that $30,000 from January to September 2024, then start Social Security in October. ...

What is the Social Security first year of retirement rule?

The Social Security first year of retirement rule modifies the earnings limit to account for those who retire mid-year, but who have already surpassed the annual earnings limit. ...

What is the earnings limit for retired workers?

For the rest of the year, Social Security will consider you retired for any month in which you earn no more than $1,860 (one-twelfth of $22,320) and do not perform what Social Security deems “substantial services” in self-employment. ...