Social Security checks don’t always provide enough to live on. Fortunately, there’s no rule saying you can’t work and receive benefits at the same time. However, Social Security does limit the amount people who retire before their full retirement age can earn while still receiving benefits.
In 2017, the earnings limit is $16,920. What happens if you exceed the earnings limit? Social Security will withhold $1 in benefits for every $2 over the limit you earn.
The money isn’t gone forever, though. Once you hit age 66 the earnings limit is lifted and you’ll receive credit for any benefits that were withheld in the past.
In 2017, most workers will pay 6.2% in Social Security tax on the first $127,200 of income. Compared to 2016, that works out to a tax increase of $539.40 for anyone whose income hits or exceeds the cap.
If you have questions call 855-22money, or go to yoursafemoneyshow.com.
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