@k169969a
That's the way I understand it and it seems to be the way SS is talking about it. That is to say, in the 1st year of filing for benefits BEFORE FULL RETIREMENT AGE - there is not only an annual earnings limit ( 2019 - $ 17,640) before it affects your benefit, there is also a monthly earnings figure which they think you will report as you work months AFTER declaring retirement in that year. That monthly figure limit is ( 2019) $1470.
Would they actually know this by month????- NO -
Only IF YOU declare it that way because your employer identifies you individually only when they submit your W-2 info to them (a copy of the W-2 goes to the SSA) at year end - otherwise your employer just sends in (deposits to Uncle Sam) the balanced amount of money on a quarterly/ monthly / weekly basis depending upon the overall amount they have withheld and matched the employment taxes - at this interval, there is no identifying employee info. The W-2 covers the whole year (2019), not by month.
SSA depends on the beneficiary to report their income so that if an adjustment is necessary, it can happen sooner than later -.
https://faq.ssa.gov/en-US/Topic/article/KA-01921 (bottom of page)
If you need to report a change in your earnings after you begin receiving benefits:
If you receive benefits and are under full retirement age and you think your earnings will be different than what you originally told us, let us know right away. You cannot report a change of earnings online. Please call us at 1-800-772-1213 (TTY 1-800-325-0778) between 7 a.m. to 7 p.m., Monday through Friday, or contact your local Social Security office.
What I would do in your situation - I would earn up to $ 17,640 (2019) n this 1st year as a new beneficiary being less than FRA. Now that's for the WHOLE year - before and after you begin benefits so not $ 1.00 more. If your 2019 W-2 shows more than this, you will get a letter sometimes next year.
That's just what I would do. I just don't see anyway they can verify by month unless you report it.
Just stay under the whole 2019 earnings figure - $ 17,640.
From Motley Fool - 2019 Social Security Earnings Test Limits
1. If you'll reach full retirement age after 2019
The most restrictive form of the Social Security earnings test applies to people who have claimed Social Security benefits but won't reach their full retirement age until after the current calendar year. In other words, if you'll reach your full retirement age on Jan. 1, 2020, or later, this is the rule that applies to you.
For 2019, people in this category will have $1 of their Social Security benefits withheld for every $2 in earned income in excess of $1,470 per month, or $17,640 per year.
Say you'll be younger than your full retirement age for the entirety of 2019, and your monthly retirement benefit is $1,200. Here are a few scenarios:
- If you earn $15,000 from working part-time during 2019, you won't have exceeded the Social Security earnings test limit and can collect your full $1,200 monthly retirement benefit all year long.
- If you earn $25,000 from working during 2019, this is $7,460 in excess of the limit. Based on the $1 per $2 withholding rate, that means $3,730 would be withheld from your benefits for the year. I'll get to how the SSA does this later, but the takeaway is that instead of receiving $14,400 in Social Security benefits during the year, you'd get $10,670 instead. So you'd collect some, but not all, of your Social Security benefit.
- Finally, if you earn $80,000 from working in 2019, that would be $62,460 greater than the limit. Based on the calculation, it would translate to $31,230 in withholdings. That's more than your Social Security retirement benefit, so your entire Social Security benefit for 2019 would be withheld in this scenario.
Just make sure you know your running earnings figure for 2019.
The amount goes up in 2020 - but I don't know what it is right yet.
You will be fine - earn it while you can just try to keep it under the annual limit until you reach FRA.
