Penalty to my current SS payment if I take a f/t job before my final retirement age

[MarkN99676]

I'm turning 66 in September 2025, and will be 10 months away from my full retirement age. I started taking my retirement benefits in March, but have an opportunity to take a f/t job starting in January - 7 months before my full retirement age. I know the penalty would be $1 off my SS check for every $2 I earn, but my questions are:

- does SS look at that new money earned as the amount earned after taxes or is my gross pay counted against my SS payment?

- would the employer still be required to take SS payments out of my pay check even though I am retired?

- once I hit that full retirement age, and the penalty of my f/t earnings on SS ends, do I get those removed funds from my SS payment over those 7 months back? 

Thank you.

[GailL1]

@MarkN99676 wrote

my questions are:

- does SS look at that new money earned as the amount earned after taxes or is my gross pay counted against my SS payment?

- would the employer still be required to take SS payments out of my pay check even though I am retired?

- once I hit that full retirement age, and the penalty of my f/t earnings on SS ends, do I get those removed funds from my SS payment over those 7 months back? 

================================

- - gross pay before any deductions for anything

- - ALL earned income must have contributions made to SS and Medicare regardless of how old one may be - your benefit would be adjusted down the road for any further contributions and reporting of your wages cause your employer continues to issue you a W2 with all the data just like BEFORE you retired.

- - Yes, your benefit is adjusted

This explains it pretty well - SSA.gov - 2025 - How Work Affects Your Benefit 

Since you have only been receiving retirement benefits for a few months, there is also a way that you can withdraw (cancel) your benefits but the rules have to be followed very specifically and any ramifications to others who may also be drawing benefits on your record needs to be realized - by you and them.

SSA.gov -Managing Your Benefits - Cancel or Withdraw Your Benefits Application 

Note:  Cancelling or Withdrawing your benefits is DIFFERENT than Suspending your benefit which you can only do once you have reached your FRA.

[RobertH514774]

They calculate the penalty based on gross amount earned.

[papawofboo]

Are you sure about that penalty? When I turned 65 I quit having to pay back. 

Everything is based on what you filed taxes on. When your tax return gets to SS they will make adjustments in your payments. They will withhold payments depending on how much over the limit you made. Gross.

I started at 62, after filing my tax return, they would send me a notice and tell me how much they would hold back next year. Most of the time it was April before I got my 1st check the next year. When I turned 65 all that stopped. You never lose the money, it always goes back in your account. It's your money, they just tell you when and how much you are going to get.

There is a lady that will most likely see this, she will know if any of this has changed.