Social Security is commonly seen equally a source of retirement income. But you lot're allowed to work and take Social Security retirement benefits or survivor benefits at the aforementioned time. If y'all do so before y'all reach total retirement age, though, Social Security may withhold office of your benefits.

Below nosotros'll encompass how you can get Social Security benefits fifty-fifty while you lot're still working. Learn how you tin can keep as much of that money as possible.

A Social Security card slid into a spread-out pile of money.

Image source: Getty Images.

How much can you earn and all the same receive Social Security?

When you take benefits while you're still working, Social Security may withhold part of your benefit depending on your income if you lot haven't reached full retirement age. Your total retirement age is betwixt 66 and 67 if y'all were born from 1943 to 1959; it's 67 if you were born in 1960 or later.

Social Security will withhold benefits at the following rates in 2022:

  • $one for every $2 of earned income above $18,960 until the year you achieve total retirement age. Allow's say you're 64 and earn $20,000 from working, and you're already getting benefits. You've earned $1,040 in a higher place the earnings limit, then Social Security would withhold $520 from your benefit.
  • $1 for every $iii of earned income above $50,520 the twelvemonth you reach total retirement age until the month before you're eligible for your full benefit. Suppose you reach full retirement historic period in Oct. Social Security would merely reduce your benefits if you earned more than $50,520 between January and September.

These rules utilise whether you're an older worker taking benefits based on your own work record or you're getting a spousal benefit or a survivor benefit.

The key to understanding Social Security's rules about working and benefits is that everything changes when you attain the date when you tin can fully retire. After that betoken, you can earn equally much equally you desire and yet keep all your benefits. Earlier, though, you tin can give upwards some of your benefits.

Can you get your full benefit if y'all're still working?

If you've reached full retirement historic period and you lot're still working, you lot don't demand to worry most whatsoever earnings limits. Social Security will not withhold money from your monthly do good. Social Security too won't take coin out of your checks if you claim early simply your income is below the thresholds listed above.

What happens to the coin Social Security withholds?

The Social Security Administration calculates the advisable amount that you'll forfeit and and so takes it out of your monthly benefits. You'll come across unabridged monthly checks held back by the government to cover the withholding. For case, if you usually get Social Security of $i,000 per month simply you have to forfeit $iv,000, so Social Security volition agree back 4 months' worth of checks.

As painful every bit it is to lose your benefits, at that place is some payback. If you lose a month'due south worth of benefits, and then Social Security treats you as if you retired a month subsequently than y'all did. Once you hitting full retirement age, y'all'll get-go getting larger monthly checks based on that later retirement date. You might not get all your lost coin back, but the bigger checks will gradually send some of it your way.

Are your Social Security benefits taxed if you're still working?

If you lot have earnings from working or you have other taxable income, such as distributions from a retirement plan, part of your Social Security may be taxed.

Whether yous're even so employed or you're a retiree, you'll pay taxes on up to 85% of your Social Security benefit if:

  • You're single with a taxable income of $34,000 or higher.
  • Yous're married filing jointly with a combined taxable income of $44,000 or higher.

You'll pay taxes on upward to 50% of your Social Security do good if:

  • You're single with a taxable income betwixt $25,000 and $34,000.
  • You lot're married filing jointly with a combined income between $32,000 and $44,000.

If your income is below these limits, you won't owe taxes on your Social Security.

What if I end working in the middle of the yr?

There'south a special rule for when yous work part of the year just then retire. Regardless of your total earnings, you're still entitled to become Social Security checks for any month in which you've officially retired.

As an example, say y'all retire early at 63 and decide that you're going to quit your $200,000-per-year task at the end of June. You'd forfeit all of your benefits for the commencement six months of the year because of your loftier earnings, but, starting in July, you could all the same get checks for the remaining six months even though your total almanac earnings were well above the annual limit.

Volition I lose my Social Security Inability or SSI benefits if I work?

Rules for disability benefits are completely different from retirement benefits. In order to collect disability, the Social Security Assistants requires that y'all no longer be able to appoint in what's known as substantial gainful activeness. For 2022, that means earning no more than $i,310 per calendar month unless you're bullheaded, in which case a $two,190 monthly limit applies.

Dissimilar the retirement benefit rules, at that place'south no phaseout for losing disability benefits. Earn a single $1 above the limit, though, and you lose every penny of what you get from Social Security Disability. If y'all brand less than the amounts above, then y'all keep full benefits, but, if you brand more than, then you lose all of your disability benefits.

However, Social Security allows disabled workers a nine-calendar month trial period to test their ability to work. During this period, y'all're immune to collect your full do good no matter how much you earn, as long as yous written report the income and still take a inability.

If you receive Supplemental Security Income (SSI), your benefits are reduced by $0.l for every dollar yous earn in a higher place $85 in 2022.

Should I piece of work and have Social Security?

If yous want to maximize your monthly Social Security checks, the simplest retirement strategy is to wait until full retirement historic period before claiming your benefits. That fashion, yous'll be able to earn an unlimited amount without losing a penny of your Social Security.

If waiting that long isn't an option, there are still some things you can do. For many, claiming at the beginning of the year in which y'all'll accomplish full retirement age works out fine because the higher earnings limits make it less likely that you'll give up your Social Security.

Finally, if you're expecting to piece of work on a part-fourth dimension basis, it'southward smart to look at the earnings limits and how they compare with your pay. If information technology looks like yous might trigger the provisions, and so you lot might decide to work a little less to keep all your benefits.