Many people wonder whether they can continue working while also drawing social security benefits. The answer is yes, but there are some rules and limitations that you need to be aware of. This article will discuss the possibility of working while collecting social security.
It is important to note that there is no age limit on working and receiving social security benefits. You can work and earn income at any age while collecting social security. However, the Social Security Administration has specific rules regarding how much you can earn before your benefits are affected.
According to the current rules, if you are under full retirement age (which is currently 67 for those born after 1960), there is a limit to how much you can earn before your benefits are reduced. In 2021, the limit is $18,960 per year. If you earn more than this amount, your benefits will be reduced by $1 for every $2 you earn over the limit.
Once you reach full retirement age, the earnings limit no longer applies, and you can work and earn as much as you want without any reduction in your social security benefits. It is important to notify the Social Security Administration when you reach full retirement age so they can adjust your benefits accordingly.
It is also important to keep in mind that if you continue working while receiving social security benefits, you may be subject to income tax on a portion of your benefits. The amount of income tax you will owe depends on your total income for the year, including your social security benefits and any other sources of income.
In conclusion, you can work and collect social security benefits, but there are rules and limitations that you need to be aware of. It is important to understand how your earnings may affect your benefits and to stay informed about any changes in the rules. By following the guidelines set by the Social Security Administration, you can continue working while also receiving the benefits you are entitled to.