Social Security Earnings Test or Penalty: A Thorough Explanation - AMAC & Tucson.com
Tom Margenau, who writes a weekly column on Social Security matters, explains how the law has always stated that you had to be “retired” to get “retirement” benefits. The rules used to apply to all, but Congress gradually lessened the effect of this burdensome law over time. At first, they said the retirement test would not apply to people over age 72 then lowered that to 70 and then eventually lowered that to full retirement age. Thus if you have reached your full retirement age (now 67), you can make any sum of money and still get your Social Security checks. Margenau takes readers through the process of money being taken away for those who collect benefits but still work between age 62 and 67. The law is especially harsh on the self-employed, and this piece details that using as an example a farmer who only works two months out of the year yet still gets hit with this so-called “penalty.” Full article here.