I will reach full retirement age in January 2022. I would like to start collecting Social Security in February 2021 as I will not earn more than $48,000 in 2021. My question is does Social Security count 12 months before your normal retirement age as the higher earnings amount or do they use calendar months? Thank Larry

Hi,

No. The applicable annual earnings test limits are based on calendar years. If you reach full retirement age in February 2022, you won't be eligible for the higher earnings test limit until the calendar year of 2022. The lower exempt amount of $18,960 will apply to you for the entire calendar year of 2021.

If you apply for benefits next year, Social Security would need to withhold $1 of your benefits for each $2 that you earn in excess of $18,960. There is, however, an alternate monthly earnings test that could be used if it would be more advantageous for you (https://www.ssa.gov/benefits/retirement/planner/rule.html).

Before deciding when to start drawing your benefits, you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry