Earnings while receiving SS before full retirement age
I just turned 65 in June 2025 and started taking my SS. I know about the limitation on earnings and know that is 1/2 of $23,400. However, I am a realtor running my income through an S Corp. I usually take my income in December based upon what is available after expenses. I anticipate it being about $10-12,000. Will this be a problem if I get 1 paycheck, or should I be paying myself monthly of about $1900?
Terry Says
I think you need to speak to your own tax advisor or accountant. Frankly, I think it’s a shame that you didn’t wait another few months to take SS –until you reach your full retirement age. And actually, you have 12 months to change your mind — and repay all the SS money you received in the past few months — so you don’t pay an earnings penalty, and get the full, unreduced benefit at your full retirement age.
Here’s a link to the chart that details the earnings penalty for those who file early and have additional income:
https://www.ssa.gov/oact/quickcalc/earlyretire.html
Eventually that reduction for taking SS early will be made up under something complicated called the RIBLIM formula. But still, if you don’t need it now or could use money from other sources, it would be simpler to repay what you’ve taken — using Form SSA 521 to withdraw your application.
