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Working and collecting Social Security? What you need to know
About 20% of people age 65+ now work full or part-time, up 50% from 2000. It is important to understand the rules regarding work while collecting Social Security benefits. If you work before reaching full retirement age (66 or 67), then there is a limit before reductions occur, currently $17,640 per year. The Social Security Administration will withhold some benefits according to a formula once that amount is exceeded. But once full retirement age is reached, benefits are recalculated, so the money is not really “lost.” Income tax on benefits is another consideration. Single filers may owe tax on as much as 50% of benefits with income in the $25,000 to $34,000 range. If income exceeds $34,000, up to 85% of benefits may be taxed. Those married and filing jointly with income of $32,000 to $44,000 could owe taxes on up to 50% of Social Security benefits. If combined income exceeds $44,000, up to 85% of benefits may be taxed. Read full piece by Rita Williams of The Motley Fool here.
The AMAC Foundation offers a free-to-the-public advisory service to all folks ageing into–or already in–Social Security. This service provides guidance in understanding the complexities of Social Security and the myriad rules and regulations associated with the process for claiming benefits, with NSSA-Certified Social Security Advisors available via email or telephone to discuss options. Learn more about this service via the Foundation’s website.