Are My Payments Reduced If I’m Still Working?
If you have significant income beyond Social Security, those earnings could trigger taxation and a reduction in your Social Security payments.
The good news is that once you reach full retirement age, you’re entitled to your full benefits no matter how much money you earn. However, before full retirement age, your benefits will be reduced as follows:
- If you’re under full retirement age for the entire year, your benefits are reduced by $1 for every $2 you earn above the annual limit, which is $17,040 as of 2018.
- In the year you reach full retirement age, your benefits are reduced by $1 for every $3 you earn above a different limit, which is $45,360 as of 2018.
An important item to note is that this reduction in your benefits is not a withholding or a confiscation; you’re still entitled to get those payments back once you reach full retirement age.
