topic Can I collect my social security while I'm still working, even though I turned 66 1/2 this July? in Retirement tax questions

Can I collect my social security while I'm still working, even though I turned 66 1/2 this July?

Rayzzer — Tue, 24 Feb 2026 06:51:17 GMT

I turned 66 1/2 in July 2023, but I'm still working and don't plan to retire until June 2024. Can I collect my social security now? And what amount of my social security should I set aside for taxes this year? Example: Social Security for 9mos comes to about $27,000.

Re: Can I collect my social security while I'm still working, even though I turned 66 1/2 this July?

JBedford — Wed, 26 Jul 2023 23:20:48 GMT

Hi, @Rayzzer , thanks for your questions!

"Can I collect my social security now?" Unfortunately, this is not a tax question, but a Social Security question, which means it it outside of our scope. But that being said, you may find this SSA article helpful.

"What amount of my social security should I set aside for taxes this year?" To answer that question in general terms, it is helpful to know how much of your Social Security will be taxable. If your MAGI is more than $32,000 if Married Filing Jointly or $25,000 for all other filing statuses, then at least some of your Social Security income may be taxable. Your MAGI is defined as half of your Social Security benefits, plus 100% of your other income. This TurboTax article goes into more detail.

Hope this helps, please let me know if this raises additional questions!

Re: Can I collect my social security while I'm still working, even though I turned 66 1/2 this July?

TGIF — Wed, 26 Jul 2023 23:26:39 GMT

Yes, you can apply and start collecting your Social Security benefits now. The amount of your taxes will depend on how much other income you earn. If you work, and are at full retirement age or older, you may keep all of your benefits, no matter how much you earn. If you earn over $56,520 your Social Security may be taxed up to 85%.

Re: Can I collect my social security while I'm still working, even though I turned 66 1/2 this July?

xmasbaby0 — Thu, 27 Jul 2023 00:15:41 GMT

TAX ON SOCIAL SECURITY

Up to 85% of your Social Security benefits can be taxable on your federal tax return. There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits. When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable.

What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2019 it was $17,640— for 2020 it was $18,240; for 2021 it was $18,960. For 2022 it was $19,560 — for 2023 $21,240)

After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare. If you work as an independent contractor then you will pay self-employment tax for Social Security and Medicare.

To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2022 Form 1040

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

Some additional information: There are 11 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.