Updated Social Security Earnings Threshold

by | May 14, 2023 | Spousal IRA | 30 comments

Updated Social Security Earnings Threshold




The Social Security earnings limit has changed. This is the maximum income you can earn before Social Security begins reducing your benefit! Understanding this limit can affect how hard you choose to work while taking Social Security. Afterall, why break your back to make another $1000 when your benefit will just be reduced? We’ll help you understand how your benefit is reduced and what you should do if you’ve already started taking social security but should have waited.

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The Social Security earnings limit is a topic that affects many retired Americans who receive Social Security benefits. This limit is the maximum amount of earnings an individual can make from work before their Social Security benefits are reduced. It is important for individuals who are retired or nearing retirement age to understand the earnings limit to avoid any unexpected reductions in their Social Security benefits.

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Currently, the Social Security earnings limit for 2021 is $18,960, which means that if an individual earns more than this amount from work, their Social Security benefits will be reduced. However, it is important to note that the earnings limit only applies to those who have started receiving Social Security benefits before reaching their full retirement age.

For those who have reached their full retirement age, there is no earnings limit and they can earn as much as they want without any reduction in their Social Security benefits. The full retirement age varies depending on the year an individual was born but ranges from 66 to 67 years old.

If an individual who is receiving Social Security benefits earns more than the earnings limit, their benefits will be reduced by $1 for every $2 earned above the limit. For example, if an individual earns $20,000 in a year and the earnings limit is $18,960, their Social Security benefits will be reduced by $520 ($1 for every $2 over the limit).

It is important to note that the earnings limit only applies to wages earned through work and does not include income from investments or other sources. Additionally, if an individual’s Social Security benefits are reduced due to earnings above the limit, they may be eligible to have their benefits recalculated once they reach their full retirement age.

Overall, understanding the Social Security earnings limit is crucial for those who are retired or nearing retirement age. By staying within the earnings limit, individuals can avoid any reductions in their Social Security benefits and ensure that they are receiving the maximum amount of benefits available to them.

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30 Comments

  1. Carroll Lightell

    I just turned 60 years old and became a new Medicare Agent. Will my Medicare residuals be counted as taxable income???

  2. Ross Neidish

    Very informative.
    Can some one help me on this please.

    My FRA would be this year( 2023) in JULY but I will begin receiving my SS in March of this year (four months early of FRA). I also want to continue working until Sept. of this year. By the end of Sept I will have made 50,000. Will I have to pay any penalties?

  3. Brian L

    Congress is taxing more

    Because 54% of Americans are DIRT BAGS and pay 0% Taxes

  4. khadija hussain

    well, i worked 10 years met 40 credit of ss requirement and am now
    63 years old with health issues. What would be my monthly benefit from Social security now? Thanks and I hope you can help clear and pin the monthly payment. Also I did work overseas for 5 years but was king less than 70k a year and I was told no filing required as this company do not pay taxes to us gov its foreign company. Can you please explain what I can do to include this 5 years ? Thanks

  5. Jackson Lee

    She looks like the witch on msnbc telling me I have to accept trans,cis ,bi, or whatever alphabet soup they are using today.

  6. Don Reinholz

    Thanks for explaining all of the things that don't count towards wages for social security purposes. So it is 2 years behind on figuring your Medicare premium by your income amount.

  7. Don Reinholz

    I don't understand why the government seems to penalize older people who might want to save more money right before they retire. Seems stupid to me. Rich people can make a lot of money but hide it inside a tax shelter. Go figure! Murica!

  8. Solatle

    Wow, what a great short video. You answered my question, the answer to which eluded me for a long time: pension deduction is excluded from the income limit, 19500. Thank you!

  9. Cindy Wagner

    If I am receiving my deceased husbands government pension, does that count as earnings for the year?

  10. Lisa Damele

    So wrong that there is an “ earning limit” if you are working Tired of the governments thumb on seniors. This needs to change. Also as rich as this county is, Medicare should be free.

  11. K Ins

    Educate yourself about how the additional IRS staff will be used.
    No. It is NOT to come after low and mid income people.

  12. Paul Knoblock

    Can I put my biz in my wifes name so I dont go over the 19K earnings limit since I am drawing Social Security?

  13. Mark Learned

    But when I retired at age 62 they took out approximately 25% right off the top which made my social security benefit at $1,230 dollars per month then I continue to work and they took out 3 months every year up until this year because this year is my full retirement what do they do with that 25% that they took out when I retired at 62 I mean you say that the money they take out because you're over the limit you get that back but what about that 25% they took out in the beginning when you retired at 62

  14. Jerry Mann

    Love your video! I have a question: does rental income count as earned income?

  15. Ken Steele

    Back in 2018 I went over my earnings limit by $8000. I did start my social security at 62. I worked out a repayment plan with social security that I've been paying back for almost 4 years. I am now past my full retirement age of 67. Social security is still taking monthly payments out of my check each month. Will this stop or will I still continue to repay the overpayment until paid in full. Thanks, Ken

  16. Paul McCarter

    I retired from teaching in Texas. My last day of my contract was May 27, 2022. However, I will receive checks in June and July for money I earned prior to June.1. Will I be penalized? Thank you so much for your help!!

  17. Roberta Collier-Morales

    Thank you for this video- I’m 73- if I start making more than $19,500…my SS will be impacted? As a freelance illustrator/ writer I already get barely enough SS to survive and I don’t have any pension or other income sources outside of some freelance work. Thank you

  18. Beacon Sharman

    My FRA is 66-4 born in 1956 can i claim ss at FRA and keep on working ,what about taxes 85%

  19. Juan Garcia

    I worked mostly for cash, how do I get a monthly Federal welfare check?

  20. Tracy Lane

    Just recently heard this & would like the truth please. I will be 62 in August, born in 60. I was married for 42 years & recently divorced. May I take my social security & change to his at 70? It may have been vice a versa. One continues to grow as I take my max from 62-70? Hope I am asking this correctly.

  21. rita131000

    Is the $19,500 limit for early retirees per person or household?? Can’t find this answer and was just on hold for 35 min and had to hang up

  22. Carl Nelson

    Sylvia, something that I can not find a real answer for one youtube(gasp!) nor really the SS website is my situation. I even called your Medicare Family and wasn't able to sus out an answer.
    My situation through the pandemic was being on unemployment and my industry (oil & gas) being underwhelmed. So for over 2 years very little work and taking unemployment I figured that being 62 in July it would be good to take is as I had no guarantee of any full time employment. I did so and got my 1st payment in August. (foreshadowing) I was re-hired full time. I make over 100k a year (combined) and have been happily receiving my payout until a friend told me that if I continue on I'd be getting a demand letter soon saying I had to pay back thousands.
    I've looked online and all I can find is examples of $1 for every $2 and also examples of working and only making $10k over the limit, I've no found "what happens if you work full time making $100k. This seems like a video that needs be made. My only answer was from your service who was very nice and said I should "call and talk to the ss administration for an answer".
    Thanks for the service and information you provide!

  23. Frank Lee

    Your SS does not "stop growing" if you earn more than 19,560 if you take it early. The recalculation at FRA is going to incremently give you back your money held as a penalty.

  24. Ed Collinge

    Great info, my wife falls into this year collecting and working cashier should work out good for us, thanks

  25. ALLWAYSAMARINE #

    I'M 62. IF I RETIRE AT 62, BUT WORK PART TIME, WILL MY MONTHLY BENEFITS INCREASE? THANKS!

  26. How To Have Fun Outdoors

    Retire at 62! Great video! Take it early and enjoy the Outdoors! Our channel can help you with that!

  27. Joel Alm

    I just got hit by social security for $3100.00. When covid hit offices closed. They just informed me that I went over and have to repay this amount. The tax preparer of 40 years experience now retired she never indicated that I went over my first year of taking my benefits.

    After working 50 years at the age of 63 I put in for my benefits. Taking the legalized welfare my social security it was a way to get someone back after paying with my employers into the system for 50 years starting my working life at 14.

    Since your not able to opt out of the social security paying into the system with the rule your a minister sending in as a objecter to social security for religious convictions. There is only one way out of over payments by waver to challenge the decision of owing over payments.

    I opted out to pay in for 3 years the amount in there offices reducing my monthly social security legalized welfare $88.00. I will not loose my monthly payments but be reduced by the $88.00 . I can now pay this overpayment for the love of God into thus debt along with the reduction additional moneys heavily dovmcument these payments to get it payed off faster while they take back there overpayment through reductions.

    If you choose to work as I did then never ever go over the cap set by the social security benefits you receive.
    Push hard on your tax preparers to heck 3 tines if you are going over.

    No one wants to pay one cent back to them on the give me $ 1.00 back for every $2.00 you made. Know the amount your caped the maximum each year of what these people the program limits you to make. Its criminal to have worked 50 years then have them take even more of what you payed into the system you will never get any good return back against what you have pain in.

    Check into the 66.4 year rule from that date when you reach 66.4 you can make as much money as you want if your health is good. They can't touch your social security payments any more. Do check out th 66 4 rule make darn sure they don't close this rule out each year.

    As for me I have only at the time of this post April 2023 I will be at the 66.4 door of this rule and plan to make as much more and keep my legalized welfare social payment 100% I owe this to me for having to pay this program for 50 years.

    Good luck
    Kindest Regards

    Joel Curtis Alm

    Like your pod cast. Thank you!!!

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