Working in the year I turn 65 and collecting SS

[JaneEO]

I turned 65 in June (2019), retired and started receiving SS the same month. I understand the rule about not making more than $1,470/month without it affecting the ss payment amount. However what I need clarification on because I cannot get a straight answer is this - Is the maximum amount I am allowed to earn based on $1,470 per month or is it based on the $10,290 for the total of the 7 month period I am receiving ss (June - Dec). In other words, if I work one month only and make $3000 during that month will my check be affected because I make more than the $1470 or will it not be affected because I make less than the $10,290?

Now, I just read the following on the SS website regarding a similar situation "If Mr. Smith earns more than $1,470 in either November or December, he won’t receive a benefit for that month." Does this mean if I make more than $1470 I receive NO check that month?  That's how I am reading this which is the first time I heard of this.

Edited to add - I just read the below on the AARP site -This means that if I exceed my monthly cap they count income received BEFORE receiving ss?  I didn't realize this, I am floored.

But suppose you earned that $30,000 from January to September 2018, then started Social Security in October. For the rest of the year, Social Security will consider you retired for any month in which you earn no more than $1,470 (one-twelfth of $17,640) and do not perform what Social Security deems “substantial services” in self-employment.

In October, November and December, Social Security will pay your full retirement benefit unless you exceed the monthly cap. Say you do so in November; Social Security would apply the $1-for-$2 withholding and count your income for the year, including the $30,000 you made before. That means you would not receive a benefit payment for November. (If you stay under the monthly limit in October and December, you’ll receive your full amount; the special rule switches on and off on a monthly basis.)

[mikholmes]

I was told by SS that it was $1470 a month or $17640 for the entire year. They told me I could do it  by the month or year. I asked and they said I could make the whole $17640 the first day of  1/1/2019 month or what ever as long as the total for the year was not over that amount

[GailL1]

@JaneEO 

There is a "special" rule for this in the year that you retire -

Special rule for the first year you retire

Sometimes people who retire in mid-year already have earned more than the annual earnings limit. That’s why there is a special rule that applies to earnings for one year, usually the first year of retirement. Under this rule, you can get a full Social Security check for any whole month you’re retired, regardless of your yearly earnings.

In 2019, a person younger than full retirement age ( which you are at 65 years old) for the entire year is considered retired if monthly earnings are $1,470 or less.

If you earns more than $1,470 in the any month after retirement ( July - December) in the same year (2019), you won’t receive a benefit for that month. Beginning the next year (2020) , only the annual limit will apply to you - the 2019 limit is $17,640 per year ( $ 1470.00 per month) - it increases a bit in most years.

If you are self-employed, there are other rules based on the actual amount of work and type of work that you do. (substantial services).

Social Security 2019 Pamphlet - How Work Affects Your Benefit

Make sure that you pay close attention to the areas where it talks about conditions that apply to you in your situation:

1.  You are retiring YOUNGER than full retirement age

2.  The specific year that you begin retirement benefits (1st year) where you have worked part of the year

3.  Whether or not you are gonna to continue to work for the remaining part of this 1st year

4.  Whether or not you are gonna to continue to work into the following years until you reach full retiement age.

5.  Depending upon if you are gonna continue to work and the amount you may be makeing - you might want to report this to SSA.  The SS pamphlet describes this.

[JaneEO]

Gail, thank you!  It baffles me how often I have received wrong information from SS over the telephone, over and over and over.  How can they do this?  If I had taken the job based on what I was told I would have lost a check or two and not even realized until next year.  I finally was able to talk with someone at SS who did give me the (hopefully) correct info.  As long as I stay under $1470 a month there will be no penalties and checks will come in full as they should.  Now what I have to figure out is this - is salary received based on the date the actual payment is received or is it based on the dates the work was done?  I'll be getting paid every two weeks which means 3 checks in Nov which of course means some of that is for work done in October.

[GailL1]

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@JaneEO wrote:

Gail, thank you!  It baffles me how often I have received wrong information from SS over the telephone, over and over and over.  How can they do this?  If I had taken the job based on what I was told I would have lost a check or two and not even realized until next year.  I finally was able to talk with someone at SS who did give me the (hopefully) correct info. 

As long as I stay under $1470 a month there will be no penalties and checks will come in full as they should.  Now what I have to figure out is this - is salary received based on the date the actual payment is received or is it based on the dates the work was done?  I'll be getting paid every two weeks which means 3 checks in Nov which of course means some of that is for work done in October.

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It is pretty much a self-reporting thing - a preemptive - so that you do not get a deduction when they do find out what you earned.  Here are a few AARP Q&As on it.

AARP - 12/17/2018 - Working while taking SS Retirement Benefits - Reporting Earnings

AARP 12/18/2019 - Do I need to notify Social Security if I am receiving benefits and earn more than ...

If you are going to keep working in 2020, you can report your planned estimated earnings at the beginning of the year and then just kind of follow it through the year - the annual limit usually goes up a bit each year.