• Question
  • Penalty for working after start collecting SS at 62

    Asked by a 62 year old man from El Paso, TX on 8/20/2019

    If I start collecting SS at 62 and keep working, Is the penalty assessed based only on my income or is my wife's income also considered to calculate it?

  • Categories: Social Security, Work Penalties


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  • I believe you are referring to the earnings limit. In 2019, the limit is $17,640 and applies to anyone collecting social security before their full retirement age. For every $2 earned beyond the 2019, social security will take $1. The earned income applies to income you earn through wages. Unemployment income is excluded, your spouse's income is excluded and capital gains, annuity, pension, etc. income is excluded. If you earn more than the limit, the best way to avoid paying the deductions is to wait to file for social security.

    Note that in the year you reach your full retirement age, the limits and deductions are different. Social Security will only deduct $1 for every $3 you earn over the limit and a different limit applies. In 2019, the earnings limit for the year you reach full retirement is $46,920.

    There is also a special rule that you can apply the first year you retire. Instead of the earnings limit applying to the entire year, you can exclude your earnings from the year prior to applying. Then, the earnings limit is pro-rated for the months after you applied for Social Security. This only is available one time in the first year you apply.

  • Login to rate this answer:   Answered on 8/26/2019
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.