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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3121
Experience:  IRS licensed Enrolled Agent and tax instructor
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I am 64 collecting social security and working PT (part

Customer Question

I am 64 collecting social security and working PT (part time). Cut off is $15,800 and change of pay I can receive from my job before I am penalized $1 for every $2 over that cut off amount. My job offers a 401K plan which I'm paying into 10% of gross pay plus I pay $218 per month health insurance. My question is; do I get penalized on the entire gross pay for the taxable year or do I get penalized on the net after my 401K contribution?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name Eva and I will be happy to help you.

Your gross earnings must be less than $15,720 (for 2016) to avoid to avoid any earnings related reduction of your benefits.

Gross earnings = rate per hour x hours worked. Gross earnings are your total earnings before any deduction to 401K or Medical insurance.

Expert:  emc011075 replied 1 year ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?