Social security benefits
I will be 66.4 months in July and want to start collecting full benefits. It will be around $2000 a month. I’m still working and want to know what is the maximum an individual can make before the government reduces your monthly benefit by $1 for every $2 you make over what amount.
Terry Says
First, will you allow me to say this is a big mistake — if you can afford to live without it. Once you reach full retirement age, every year you wait to take benefits (up till age 70 when they MUST be taken) gives you an 8% increase plus the year’s cost of living increase! So please please wait a couple more years!
Once you reach full retirement age, there is no reduction in benefits based on your income. BUT, you benefits can become taxable when added on to your other income. Another reason to delay. Here are the income limits at which a portion or all of your benefits become taxable:
Individuals with a combined income between $25,000 and $34,000 are taxed on 50% of their Social Security benefit.
If your combined income exceeds $34,000, 85% of your Social Security income could be taxable.
Married couples face tax on 50% of their Social Security benefit if their combined income is between $32,000 and $44,000.
