Social Security is commonly seen as a source of retirement income. But you lot're allowed to piece of work and have Social Security retirement benefits or survivor benefits at the same time. If you do then before you reach full retirement age, though, Social Security may withhold part of your benefits.

Below nosotros'll cover how you tin get Social Security benefits even while you're even so working. Learn how yous tin go along as much of that money every bit possible.

A Social Security card slid into a spread-out pile of money.

Prototype source: Getty Images.

How much can you earn and still receive Social Security?

When yous have benefits while you're still working, Social Security may withhold function of your benefit depending on your income if you haven't reached total retirement historic period. Your full retirement age is between 66 and 67 if you lot were born from 1943 to 1959; it'southward 67 if y'all were born in 1960 or later.

Social Security volition withhold benefits at the following rates in 2021:

  • $one for every $two of earned income in a higher place $eighteen,960 until the yr you reach full retirement age. Let's say you're 64 and earn $xx,000 from working, and you lot're already getting benefits. You've earned $1,040 above the earnings limit, then Social Security would withhold $520 from your benefit.
  • $1 for every $3 of earned income above $l,520 the year you reach full retirement age until the month earlier y'all're eligible for your full benefit. Suppose y'all reach full retirement age in October. Social Security would only reduce your benefits if you earned more than $50,520 between Jan and September.

These rules apply whether you lot're an older worker taking benefits based on your own piece of work record or you're getting a spousal benefit or a survivor benefit.

The key to understanding Social Security's rules nigh working and benefits is that everything changes when yous reach the date when yous can fully retire. Later on that point, you can earn as much as you desire and still continue all your benefits. Earlier, though, you can give upward some of your benefits.

Can you get your full benefit if you lot're all the same working?

If you've reached full retirement age and yous're still working, you don't need to worry nearly any earnings limits. Social Security volition not withhold money from your monthly benefit. Social Security also won't take coin out of your checks if you claim early on just your income is below the thresholds listed higher up.

What happens to the coin Social Security withholds?

The Social Security Administration calculates the appropriate amount that you'll forfeit and then takes it out of your monthly benefits. You'll meet entire monthly checks held dorsum by the regime to cover the withholding. For instance, if yous ordinarily get Social Security of $1,000 per month but you take to forfeit $iv,000, so Social Security will hold dorsum four months' worth of checks.

As painful as information technology is to lose your benefits, there is some payback. If y'all lose a month'due south worth of benefits, then Social Security treats you as if you lot retired a calendar month later on than you did. Once y'all hit full retirement age, you'll start getting larger monthly checks based on that later retirement appointment. You might non get all your lost coin back, but the bigger checks will gradually transport some of it your way.

Are your Social Security benefits taxed if you're still working?

If you have earnings from working or you accept other taxable income, such as distributions from a retirement plan, part of your Social Security may be taxed.

Whether yous're still employed or you're a retiree, you'll pay taxes on upwards to 85% of your Social Security do good if:

  • You're unmarried with a taxable income of $34,000 or higher.
  • You're married filing jointly with a combined taxable income of $44,000 or college.

You lot'll pay taxes on up to 50% of your Social Security do good if:

  • You lot're single with a taxable income between $25,000 and $34,000.
  • You lot're married filing jointly with a combined income between $32,000 and $44,000.

If your income is beneath these limits, you won't owe taxes on your Social Security.

What if I stop working in the middle of the year?

At that place'southward a special rule for when you work role of the year merely and so retire. Regardless of your total earnings, y'all're still entitled to get Social Security checks for any month in which you've officially retired.

As an case, say y'all retire early on at 63 and decide that you lot're going to quit your $200,000-per-twelvemonth job at the end of June. Y'all'd forfeit all of your benefits for the commencement 6 months of the twelvemonth because of your high earnings, simply, starting in July, you could still become checks for the remaining six months even though your total annual earnings were well to a higher place the annual limit.

Will I lose my Social Security Disability or SSI benefits if I work?

Rules for disability benefits are completely different from retirement benefits. In social club to collect disability, the Social Security Administration requires that you lot no longer be able to appoint in what's known as substantial gainful activity. For 2021, that means earning no more $1,310 per month unless you're bullheaded, in which example a $ii,190 monthly limit applies.

Unlike the retirement do good rules, at that place'south no phaseout for losing disability benefits. Earn a single $1 above the limit, though, and you lose every penny of what you get from Social Security Disability. If you make less than the amounts to a higher place, and then you lot proceed full benefits, simply, if you make more than, then you lose all of your disability benefits.

Notwithstanding, Social Security allows disabled workers a 9-month trial period to test their ability to work. During this period, you're allowed to collect your full do good no affair how much you lot earn, as long as you study the income and notwithstanding have a disability.

If you lot receive Supplemental Security Income (SSI), your benefits are reduced past $0.50 for every dollar you earn above $85 in 2021.

Should I piece of work and take Social Security?

If y'all want to maximize your monthly Social Security checks, the simplest retirement strategy is to wait until full retirement age before challenge your benefits. That way, yous'll exist able to earn an unlimited amount without losing a penny of your Social Security.

If waiting that long isn't an selection, there are nonetheless some things you can do. For many, claiming at the beginning of the year in which you'll attain full retirement age works out fine because the college earnings limits go far less likely that you'll requite up your Social Security.

Finally, if you lot're expecting to work on a part-time ground, it'southward smart to look at the earnings limits and how they compare with your pay. If it looks like you might trigger the provisions, then you might decide to work a little less to continue all your benefits.