Social Security While Working

My girlfriend is retiring from her job March 1st. She applied for SS retirement at the end of November with a request that it be effective Jan 1st. She is not FRA. The thinking was that she would get her first SS check in February and the transition would be financially smooth.

She does make over the annual limit of 21,240 but she would only be working 2 months so we thought that wouldn't be a problem. 

Now it seems that the limit is calculated monthly (1770/mnth) and because we advised them she would be working Jan and Feb, she was told she won't get a check til April!

Bear with my calculations here:

She makes 4330/month. She will be working 2 months. Her regular SS check will then be 1864.00.  If you subtract the exemption of 1770, that leaves the income subject to penalty at 2560/month. At 1.00 for 2.00 earned she would be penalized 1280 X 2 months = 2560. Assuming they collect all penalties in full this would leave her 0 dollars in Feb and a check for 1168 in March. 

It sounds as if they want to ignore her request for an effective date of Jan and just start her in March when she leaves her job.


Any one with any input????


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