Browsing: earned income

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,…

Q. I am a retired federal employee and intend to work as a real estate agent with plans to establish an LLC for my business. Would this be subject to the earnings test for my annuity supplement?  A. Since this is earned income, it will be counted in computing any offset.

Q. I will be 62 next year and am a CSRS Offset employee. I would like to know if I can apply at that time for Social Security benefits and retire afterwards (within a few months), and whether a salary is reduced as it is with the pension.  A. You may apply for Social Security benefits while you are still working. Your earned income will not be reduced by the offset provision of your retirement system.