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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12691
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am wondering how much the damage is if I start collecting

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I am wondering how much the damage is if I start collecting social security at age 64 and if I get it st that she my monthly payment it will be $1832.00 per month and my work incone is $59,000 a year
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: Not as I know

Hi. There are a couple of issues here.

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At age 64, the reduction for starting early is about 13.3 percent; and at age 65, it is about 6.7 percent.

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Also there is a further reduction from THAT if you earn over the annual earnings limit for working while taking Social Security early.

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If you are under full retirement age for the entire year, they deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2017, that limit is $16,920.

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But In the year you reach full retirement age, tey deduct $1 in benefits for every $3 you earn above a different limit. In 2017, the limit on your earnings is $44,880 but we only count earnings before the month you reach your full retirement age.

Please let me know if you have ANY questions at all, before rating me.

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

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Thanks,

Lane

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice on three continents since 1986.

Customer: replied 3 months ago.
I did registered on line with social security and they said if I want to collect social security now I will get $1832 but if I retired at ful age 66 I will got $2116 so as far I understand you are saying they will take $1 on every $2 I make after I reach the $16900 a year and I will be making from SS a year $21984.00.
$21984.00 - $16900=$5984
So they will take $1 on every $2 of that $5984.
Is that correct

I'm sorry, I didn't see that you had come back (I signed off at 9:00 last night).

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But yes what you've said is correct. Once you hit age 66 There IS no longer a reduction for working while receiving benefits.

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AND for the year that you turn 66, its' $1 in benefits for every $3 you earn above a different limit; $44,880

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If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

That's the only way JustAnswer will credit me for the work.

Thanks,

Lane

DId you see my answer? Again, yes you have it exactly.

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Lane

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