receive ssdi benefits

How can income affect my Social Security benefits?

If you do want to work while you are receiving Social Security benefits, it is possible that you can receive a higher amount in the future. Every year, Social Security reviews Social Security recipients work file to determine if benefits need to be changed. You benefits will be recalculated based on an increase or decrease. This is important and beneficial for your future, especially when you reach retirement age.


How much can I make while still receiving benefits?

Your Social Security earning will decrease the amount if you retire before the full retirement age. The full retirement age is 66.


● If you’re under the full retirement age, Social Security will take $1 from your benefits for every $2 that you’ve earned. The limited amount that Social Security can take from someone is $16,920


● During the full retirement year, $1 is deducted for every $3 earned.


Once full retirement age is reached:

● Your earnings will no longer be reduced once the month you reach full retirement age hits.


● We will recalculate your benefit amount to leave out the months when we reduced or withheld benefits due to your excess earnings.


How is Social Security Earnings Calculated?

This concept is easy to understand. The more you work and earn, the higher your monthly benefits will be. Each year, your yearly income is added to your work record and with that, a portion is used to determine your retirement.


If you have worked more than 35 years, Social Security will just take the highest 35 years earned and the other years will not be included. If you have not worked for at least 35 years, the remaining years until Social Security reaches 35 years, will count as no money earned that year, which can hurt your monthly earnings. These earnings are used to calculate “primary insurance amount” which is the highest amount you are able to receive once you hit full retirement age.


The earliest you can start receiving benefits is 62, but like previously mentioned, you won’t receive the full amount. This is because it is compensating for the years of SS that is paid to you. You are able to work during the time for receiving your Social Security. You do have the option to put some of your benefits aside so you can receive more in the future.


Getting Social Security while still working

It is common that people work while receiving their Social Security retirement benefits. There may be some benefits that are withheld during this time until you reach full retirement age. Your Social Security benefits are not taxable, but if the income you are making is more than the maximum amount you can receive in Social Security, then you can tax some of your benefits.


Once you reach retirement age, your benefits will be recalculated so you can receive full benefits. You will be credited the time that you were receiving benefits prior to the age of 66. You will be notified once your benefits have increased and your next monthly payment will be changed.


If you have any other questions regarding your Social Security benefits and retirement, you should consult with a lawyer who can help you during this time.