Senior News August, 2003 Vol. 24. No. 6

 

Published by the Humboldt Senior Resource Center in Eureka, California. HSRC is a non-profit community-based organization offering services for senior citizens, multi-generational families and caregivers.

Ruth Mountaingrove is taking a semester off after 17 years

Gulp! I'm finally eligible for HSU's classes for seniors

Arts program teaches 100-year-old craft

Timber Ridge builds 48 new senior units

Three delightful selections lure travelers to the warmth of So. Humboldt

How a paycheck affects your Social Security benefits

Briefs

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Working...
How a paycheck affects your Social Security benefits
by Bernie H. Herskovets

     You can receive Social Security retirement or survivors benefits and
work at the same time. However, depending on your age, your benefits could
be reduced if you earn more than certain amounts. As you read on, you will
learn what counts as "earnings," how earnings affect your benefits and how
to report those earnings to Social Security.
     Note: a different set of rules applies to people receiving Social
Security disability benefits or Supplemental Security Income (SSI) payments.
They should report all earnings to Social Security.
     If you work for someone else, only your wages count toward Social
Security's earnings limits. If you're self-employed, we count only your net
earnings from self-employment. In either case, we don't count non-work
income such as other investment earnings, interest, pensions, annuities and
capital gains.

These are examples of how the rules would affect you:
     Let's say you begin receiving Social Security benefits at age 62 in
January 2003 and you're entitled to $600 a month ($7,200 for the year).
During the year, you work and earn $20,000 ($8,480 over the $11,520 limit).
We would withhold $4,240 of your Social Security benefits ($1 for every $2
you earn over the limit), but you would still receive $2,960 in benefits.
     Or, let's say you were age 64 at the beginning of the year, but reached
full retirement age (65 and two months) in August 2003. You earned $33,000
in the seven months from January through July. During this period, the
amount of benefits we would withhold would be $760 ($1 for every $3 you
earned above the $30,720 limit). You would still receive $3,440 of your
Social Security benefits.
     And, starting in August (when you reach 65 and two months), you would
begin receiving your full benefits, no matter how much you earn.

A Special Rule For The First Year You Retire
     Sometimes, people who retire in mid-year have already earned more than
the yearly earnings limit before they retire. That's why there's a special
rule that applies to earnings for one year, usually the first year of
retirement. Under this rule, you can receive a full Social Security check
for any whole month you are retired, regardless of your yearly earnings.

Reporting Changes In Your Earnings:
     We calculate benefit payments based on the earnings estimate given us
when a person applied for Social Security or the most recent estimate of
earnings. If at any time during the year, you see that your earnings will be
different from what you had estimated, you should call us to revise your
estimate. This will help us make sure you get the correct benefit amount.
Check our website at www.socialsecurity.gov for answers to general
questions about Social Security. You may also call us toll-free at
800-772-1213. We can answer specific questions by phone from 7 a.m. until 7
p.m. on business days.
Bernie H. Herskovets is Eureka District Manager for the Social
Security Administration.