Q. Concerning the “First Year Rule,” I will reach full retirement age (66) in October 2020. Suppose I earned $10,000 a month, so by Oct. 1, I would have earned $90,000 for the year, which means I would have paid the 7.2 percent tax into my Social Security Insurance account during that time. Since I would have surpassed the $47,000 number, do I owe $1 for every $3 for the $43,000?
Also assume, once I retire, I would receive $3,000 per month in SSI retirement benefits. If I worked after retiring during October thru December and made $3,000 per month, do I pay any additional SSI payments on the $3,000?
A. As I understand the rules, in this case, the $90,000 you earned before you claim your Social Security benefit will not be counted toward offsetting your benefit. Once you have claimed, any additional earned income will be subject to OASDI taxation and will be included in computing your future SS benefits.