I will be full retirement age in June 2017. Am I allowed to earn $41,880 in the first 5 months of the year without being penalized? Or is the maximum $41,880 divided by 12 for a monthly max amount of $3490?

Thank You!

Hi,

If you're working for wages, only the amount that you earn in the first 5 months of 2017 would count toward the Social Security earnings test exempt amount. This year, the exempt amount is $41,880, but it could be higher next year. You could then earn an unlimited amount in the last 7 months of the year without losing any Social Security benefits.

If you're self-employed, your net earnings for the entire year of 2017 will be prorated, and 5/12ths of the total will count toward the 2017 exempt amount. So, you could have about $100,500 in net self employment earnings next year without losing any Social Security benefits due to the earnings test.

Best, Jerry