- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
There are three related issues.
1. For your exact question, if you are less than your full retirement age, then having income from working will reduce your benefit in the following year, if the income is more than a certain amount. If you are at or older than your full retirement age, there is no benefit reduction even if you keep working.
However, you should also be aware of two more points.
2. If you continue to work, you will continue to pay SS and medicare tax on your earnings from work (either a W-2 job or self-employment), even though you are also collecting your benefit.
3. If your only income is your SS benefit, it is not taxable. But if you have other income over the limit (from a job, investments, pension, gambling, or anything else) then your benefit will be taxed.