Ask Larry

Will Social Security Count My Earnings For The Whole Year Or Just For The Months I Draw Benefits?

Hi Larry, I want to start collecting early social security this year I will turn 62 in April but will not retire from my job until July. My question is on the earnings limit working 6 months in 2022 I will go over the wages limit earned for the year but if social security were to start counting my wages earned from when I start collecting this year I would not go over the wages earned limit as I would only have a few months income plus paid out vacation wages but both would not put me over the limit. Are they going to count my earned wages this year from April or the whole year starting from January? I will add I also have a child under 18 but from what I read what they pay for the dependent is separate from my benefits? I will add I have signed up for and run the reports here on Maximize My Social Security. They were helpful to see the few options I have and may alter my initial plans a bit after studying the reports but for the wages earned during the first year transition year to requirement I did not find that answer so here I am hoping you can give me some advice on how to deal with this transition year.

Thank you,
Dale

Hi Dale. Just so you know, I answer questions submitted to this site, but I don't have access to our software customer's records. Ideally, software customers should submit their questions using an online contact form in the help menu so that they can receive a personalized answer from one of our experts with access to their data.

I can tell you that the annual earnings test counts your entire calendar year earnings regardless of what month you start drawing benefits. There is an alternate monthly test, however, that would allow you to be paid at least for any months this year in which you earn no more than $1630 (https://www.ssa.gov/benefits/retirement/planner/rule.html).

The earnings test would apply not only to your benefits, but also to any auxiliary benefits (e.g. child benefits) payable from your record. So, your child couldn't be paid for any months that your benefits are withheld as a result of your earnings.

Our software (https://maximizemysocialsecurity.com/purchase) is programmed to consider both the annual and monthly earnings tests, so you should be able to use the software to fully analyze your options.

Best, Jerry

Category: 
Posted: 
Jan 14 2022 - 12:14pm
MaxiFi software running on a laptop
Get What's Yours!
Discover tens of thousands in extra retirement dollars with Maximize My Social Security software!
  • Find your maximized strategy
  • Unlimited what-ifs
  • Step-by-Step filing instructions
  • Our software's lifetime-benefit increase for an illustrative couple earning $65K each and planning to take retirement benefits at 62.

    Results will differ based on your specific case and filing strategy.

Getting Started is Easy
Web-based software. Works on ALL browsers. No download.
$40 Annual Household License
$299 Annual Financial Advisor License