@hpertrain wrote:Hello all,
I started taking SS benefits at age 62. Now I am back to work earning $45K which I know is over the $19,650
threshold. I know there's a $2.00 over $1.00 you earn or something like that. My question is how do I calculate that
and how do I pay back any over payments? I'm now 63 and past the suspending my benefits. I just started this new job
3 months ago. Thanks.
I don't think there's any limit on how much you can earn now.
You might be mixing up disability-based Social Security with age-related Social Security.
Sorry, I was wrong. Excellent article posted by @Who_wuda_thought explains it well.
Congratulations on your return to work with a nice salary!!
It's pretty important for you to contact SSA as soon as possible to enable an estimation of overpayment, as well as establish the new benefit amount to be paid (less the reduction for $1 for each $2 to be earned, less prior over-payments)
Here's a fairly good article on the subject:
https://www.bankrate.com/retirement/social-security-benefits-affected-unretiring-work/
ETA:
The paper napkin calculation will look something like:
$45,000 - $19,650 = $25,350
$25,350 ÷ 2 = $12,675
$12,675 would be the annualized amount withheld from your SSA Retirement benefits for the year 2022. 3 months of that (to estimate overpayments thus far) would be $12,675 ÷ 12 x 3 mo. = $3,168. Amount per month withheld ongoing would be $12,675 ÷ 12 = $1056.
@Jnbmom wrote:
@SouthJamaica wrote:
@hpertrain wrote:Hello all,
I started taking SS benefits at age 62. Now I am back to work earning $45K which I know is over the $19,650
threshold. I know there's a $2.00 over $1.00 you earn or something like that. My question is how do I calculate that
and how do I pay back any over payments? I'm now 63 and past the suspending my benefits. I just started this new job
3 months ago. Thanks.
I don't think there's any limit on how much you can earn now.
You might be mixing up disability-based Social Security with age-related Social Security.
I thought that was ifyou reached full retirement age ? I still believe there's a cap
Yeah I was wrong. Sorry about that.
@Jnbmom wrote:
@SouthJamaica wrote:
@hpertrain wrote:Hello all,
I started taking SS benefits at age 62. Now I am back to work earning $45K which I know is over the $19,650
threshold. I know there's a $2.00 over $1.00 you earn or something like that. My question is how do I calculate that
and how do I pay back any over payments? I'm now 63 and past the suspending my benefits. I just started this new job
3 months ago. Thanks.
I don't think there's any limit on how much you can earn now.
You might be mixing up disability-based Social Security with age-related Social Security.
I thought that was ifyou reached full retirement age ? I still believe there's a cap
There is a cap after full retirement age on filing taxes and still working. No one pays over 85% of their income. Yes income tax on SS.
You will pay tax on only 85 percent of your Social Security benefits, based on Internal Revenue Service (IRS) rules. If you:
- file a federal tax return as an "individual" and your combined income* is
- between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
- more than $34,000, up to 85 percent of your benefits may be taxable.
- file a joint return, and you and your spouse have a combined income* that is
- between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits.
- more than $44,000, up to 85 percent of your benefits may be taxable.
- https://www.ssa.gov/benefits/retirement/planner/taxes.html
"Workers planning for their retirement should be aware that retirement benefits depend on age at retirement. If a worker begins receiving benefits before his/her normal (or full) retirement age, the worker will receive a reduced benefit. A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent."
They know your age and the checks will come out according to that. Now add the deduction for going over the cap on income. List goes on and on. I have had more arguments at work with the guys/gals who want to collect early. JMO. Its not worth it. Your stuck with it. If you wait till FRA. So many more benefits happen. Remember Medicare comes out of your check if you dont have employers insurance. Then comes the time you'll fully retire. Right now its $148.50. Up from last year. Going up again next year.
Yes there will be a COLA around 9%-10.5% next year for 2023 (two more months to go till finalized) but Medicare is estimating to go up another $31.50. So 178.50 possibly next year coming out of your check if you quit working. 30% taken away early retirement. I'm waiting it out.
@crystal626 wrote:
@FireMedic1 wrote:"Workers planning for their retirement should be aware that retirement benefits depend on age at retirement. If a worker begins receiving benefits before his/her normal (or full) retirement age, the worker will receive a reduced benefit. A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent."
They know your age and the checks will come out according to that. Now add the deduction for going over the cap on income. List goes on and on. I have had more arguments at work with the guys/gals who want to collect early. JMO. Its not worth it. Your stuck with it. If you wait till FRA. So many more benefits happen. Remember Medicare comes out of your check if you dont have employers insurance. Then comes the time you'll fully retire. Right now its $148.50. Up from last year. Going up again next year.
Yes there will be a COLA around 9%-10.5% next year for 2023 (two more months to go till finalized) but Medicare is estimating to go up another $31.50. So 178.50 possibly next year coming out of your check if you quit working. 30% taken away early retirement. I'm waiting it out.
Part B this year is $170.10, not $148.50, that was in 2021. Medicare is not actually projected to increase next year because they went back on a lot of coverage for that Alzheimer medication that drove the cost to $170.10 this year (Medicare increases are based on future expectations, not past, and it was expected that this drug would be widely available and used). Part B may fall as low as $160 next year, additionally, Part D is projected to fall on average about 58 cents. Both of these are projections though and won't finalize until the fall.
https://www.fool.com/investing/2022/08/05/medicare-part-d-premiums-are-expected-to-drop-in-2/
Time will tell what actually happens. I wouldn't be surprised to see a hike anyway but that 14.5% premium increase was pretty dramatic compared to average past increases so if there is an increase, it shouldn't be much.
Sorry. Got the wrong year. Yes $170.10. 22,23. Up and up! 
https://www.medicare.gov/basics/costs/medicare-costs
"The Centers for Medicare & Medicaid Services (CMS) today (July 19, 2022) announced that the average basic monthly premium for standard Medicare Part D coverage is projected to be approximately $31.50 in 2023. This expected amount is a decrease of 1.8% from $32.08 in 2022.
$201.60
@FireMedic1 wrote:
@crystal626 wrote:
@FireMedic1 wrote:"Workers planning for their retirement should be aware that retirement benefits depend on age at retirement. If a worker begins receiving benefits before his/her normal (or full) retirement age, the worker will receive a reduced benefit. A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent."
They know your age and the checks will come out according to that. Now add the deduction for going over the cap on income. List goes on and on. I have had more arguments at work with the guys/gals who want to collect early. JMO. Its not worth it. Your stuck with it. If you wait till FRA. So many more benefits happen. Remember Medicare comes out of your check if you dont have employers insurance. Then comes the time you'll fully retire. Right now its $148.50. Up from last year. Going up again next year.
Yes there will be a COLA around 9%-10.5% next year for 2023 (two more months to go till finalized) but Medicare is estimating to go up another $31.50. So 178.50 possibly next year coming out of your check if you quit working. 30% taken away early retirement. I'm waiting it out.
Part B this year is $170.10, not $148.50, that was in 2021. Medicare is not actually projected to increase next year because they went back on a lot of coverage for that Alzheimer medication that drove the cost to $170.10 this year (Medicare increases are based on future expectations, not past, and it was expected that this drug would be widely available and used). Part B may fall as low as $160 next year, additionally, Part D is projected to fall on average about 58 cents. Both of these are projections though and won't finalize until the fall.
https://www.fool.com/investing/2022/08/05/medicare-part-d-premiums-are-expected-to-drop-in-2/
Time will tell what actually happens. I wouldn't be surprised to see a hike anyway but that 14.5% premium increase was pretty dramatic compared to average past increases so if there is an increase, it shouldn't be much.
Sorry. Got the wrong year. Yes $170.10. 22,23. Up and up!
https://www.medicare.gov/basics/costs/medicare-costs
"The Centers for Medicare & Medicaid Services (CMS) today (July 19, 2022) announced that the average basic monthly premium for standard Medicare Part D coverage is projected to be approximately $31.50 in 2023. This expected amount is a decrease of 1.8% from $32.08 in 2022.
$201.60
No that's the total projected average premium for the Part D, the drug insurance plans, it's not the increase or decrease projected for Part B. So it's actually saying plans have slightly decreased in cost next year, likely because the deductibles are going up (so still increased cost for many).
It would be a surprise if Part B increases much after the huge increase this year that was driven by that drug.