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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4188
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I will be 66 year old in August of this year, and continuing

Customer Question

I will be 66 year old in August of this year, and continuing to work in a somewhat well paid job. At that time, if I elect to begin receiving my social security benefits, is it the case that I will receive my full benefit without reduction or penalty as a result of also being employed? Also, will I have to pay federal income tax on my s.s. income? Thank you.
Submitted: 7 months ago.
Category: Tax
Expert:  PDtax replied 7 months ago.

Hi from Just Answer. I'mCustomer I will assist.

If you claim social security at full retirement age (FRA), you will receive your full benefit without loss due to your working. You can earn as much at your job as you like, and not lose $.01 in social security benefits.

The social security benefits will likely be taxable, up to 85% of the total benefits. If you earn $70,000 at your job, and $12,000 in social security benefits in 2016, you might be Federally taxed on $70,000+ (.85*$12,000=)$10,200=$80,200 in total taxable income.

Just as a note to add to your decision, for every month you defer collecting your social security, the benefit increases by 2/3 of 1% for each month (8% per year).

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