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PDtax
PDtax, CPA firm owner
Category: Social Security
Satisfied Customers: 4152
Experience:  35 years tax and professional advice in all matters money
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Question #1: I'll be 64 this November. If I start taking

Customer Question

Question #1: I'll be 64 this November. If I start taking social security this year, how much additional income can I earn in 2015, 2016 (when I'll turn 65 in November), and then again in 2017 (when I turn 66 that November), without getting penalized?
Question #2: If I were to start taking social security and my additional income would penalize me such that it would negate my social security to $0, would my social security revert back to the regular amount after age 66?
Submitted: 1 year ago.
Category: Social Security
Expert:  PDtax replied 1 year ago.
Welcome to the site. I'mCustomer and will be helping you today.
You can earn $15,720 in 2015 before losing any social security benefits. The is as similar wage cap (final amount to be determined with cost of living adjustment) until you reach full retirement age (66) when the cap no longer applies.
Any forfeited benefits are returned to your wage base to increase your social security benefit after age 66. Any lost benefits are credited to you.
Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer
Customer: replied 1 year ago.
I asked also what I could earn in 2016, when I would be turning 65 in November, and also what could I earn in 2017 when I would be turning 66 that November.
Expert:  PDtax replied 1 year ago.
The amount of wages you can earn before losing any early retirement benefits changes each year. The 2015 wage cap is adjusted after the 2015 calendar year for 2016, and is not currently available. The amount is adjusted for cost of living, which can't be determined until the year has passed.
Once you reach age 66, you can earn all you like without loss of benefits.
Customer
Customer: replied 1 year ago.
Does that mean in calendar year 2017 - the year I turn 66 - I could earn $100,000 plus and not get penalized?
Expert:  PDtax replied 1 year ago.
Starting with the month you reach age 66 you can earn all you want without penalty.
Customer: replied 1 year ago.
I thought I read somewhere that the year before you turn 66, you could earn a larger amount. Of money, something in the neighborhood of $30,000+ or so. Is that correct?
Expert:  PDtax replied 1 year ago.
From SSA.gov:
If you will reach full retirement age in 2015, the limit on your earnings for the months before full retirement age is $41,880.
It is the short period before you reach full retirement age, not the year before. It's intended to allow full retirement age retirees to transition without much of a penalty for working up to retirement.
That came from the same SSA web page link I provided.

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