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| "4. Whether you're still working. If you take Social Security before your normal retirement age, earning a wage (or even self-employment income) could reduce your benefit. For example, if you're still working and you haven't reached your normal retirement age, $1 in benefits will be deducted for every $2 you earn above the annual limit ($15,120 in 2013).
In the year you reach your normal retirement age, it changes to $1 in benefits deducted for every $3 you earn above a higher limit ($40,080 in 2013), deducted only for income earned before the month you reach your normal retirement age.
Starting the month you hit your normal retirement age, your benefits are no longer reduced no matter how much you earn. Keep in mind, any reduction in benefits due to the earnings test is only temporary, analogous to "withholding." You will get the money back in the form of a higher benefit at full retirement age, so you shouldn't cut back on working or worry about earning too much."
"That said, keep in mind that Social Security benefits may be taxable, depending on your modified adjusted gross income (MAGI). As your MAGI increases above a certain threshold (from earning a paycheck, for instance), more of your benefit is subject to income tax, up to a maximum of 85%.
For more information, see the SSA publication How Work Affects Your Benefits, and IRS Publication 915: Social Security and Equivalent Railroad Retirement Benefits.
In any case, if you're still working, you may want to postpone Social Security either until you reach your normal retirement age or until your earned income is less than the annual limit.
However, in no case should you postpone benefits past age 70. (You will receive your largest benefit by delaying retirement until age 70, so it never makes sense to wait past that age.)"
http://www.schwab.com/public/schwab/resource_center/expert_insight/...
Edited by littlejohn 3/15/2014 15:21
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Social security and farming
