Content starts here
CLOSE ×
Search
Reply
Contributor

Working & Early Social Security

I have a question as to what Social Security uses as earnings that count against the SS income limit before your retirement age. Everyone, including Social Security workers, says gross wages. When I applied last year at 62 I originally used Social Security wages, Line 3 on W2 forms. That includes 401K contributions but not pre-tax benefit deductions like health insurance, flexible spending, health savings accounts, transit accounts, etc. In my case. over $9K. That would have meant I would receive 5 months of checks. But after talking to SS and reading everything I could on the internet, I changed my estimate to use gross wages, which meant only receiving 2 months. Now, I just received a $3800 deposit in my checking account from SS. It is because they used the wages reported to them by the IRS from Line 3, the same amount they use to calculate benefits. I'm still not sure if that is correct or not. I don't want them asking for it back later. 

0 Kudos
1,705 Views
1
Report
Super Contributor

    After you take early retirement  the only amount SS uses for the additional earnings limits is the amount you earn from actually working a job which is subject to SS tax. Anything you get from a pension or other form of retirement payment is not subject to social security taxes and therefore not counted toward early retirement earnings limits. 

0 Kudos
1,209 Views
0
Report
cancel
Showing results for 
Show  only  | Search instead for 
Did you mean: 
Users
Need to Know

AARP LIMITED TIME OFFER
Cyber Week Sale! Join or renew for just $9 per year - $45 billed at the time of a purchase with a 5-year membership.
Join or renew
and get a FREE gift!

AARP Membership Cyber Week Sale

More From AARP