The Earnings Limit needs to be eliminated. It penalizes the everyday lower to middle class who need the money to live on - plus taxes are still being paid on those earned wages which of course helps to keep feeding the economy. Where as the upper middle class and wealthy still get all the extra money coming in from all the dividends, etc that they are earning. Why is it right that once again the working guy should be penalized when they totally need all the money to actually get by? It seems unjust that those in need, that don't have all the extra income, get slammed. Those who are taking SS and have thousands a month coming in get no penalty?
amen I can't see where Government cares about the little people at all. Last week I talked to a lady who is on the Election Committee For Eric Critten I was telling her about this exact Subject and she what the reason Is. Is that the group of us In this situation is such A small group in the pool of Eligible Voters that Elected officials don't care.
If you are still working, you are still paying into the SS retirement system, right? And higher wages will mean more of your SS will be subject to additional taxation (see Devin's March 8 video on that). A lot of people, if allowed to work beyond the current 19,560 annual limit, would soon find themselves in the 50% taxable bracket for SS retirement payments. In other words, letting people work more while retiring early, would actually generate more SS taxes coming into the fund.
@@rogerwhite3651 You're JUST NOW figuring this out? I was denied voting one year...which before then I would have told anybody telling ME that, that they did something wrong. I did not...I was just flat out told to leave, even though I was on the list and properly registered. I contacted The Governor's office... nothing. The President... nothing... everyone and every agency I could think of, and some I hadn't heard of before...nothing. YEARS AND YEARS...nothing. NOT ONE GOVERNMENT OFFICIAL cares about you. They care about $$$$...and will pony up to you if it means more $$$$ but ONLY if it means more $$$$ because they do NOT CARE ABOUT YOU...but only the $$$$.
@@clintfalk I'm talking about SS Income Penalty being eliminated. This means that you would not loose any of your SS monthly payment. Retired individuals that still needed to work for additional income would still pay SS taxes along with Federal and State taxes on their earned, from wages, pay checks - again, not their monthly SS payments nor would they be penalized in any way for still holding a job.
The earnings limit discourages partial retirement. For many people, it makes sense to work less as you get older, but not to stop entirely,. The earnings limit makes it impossible for many people to draw social security if they are still working, and complicated for the rest. I used to think my mother-in-law was silly to refuse to earn a dollar over the earnings limit---social security would only take half of the excess. But when I looked into the paper work, and the risk of having benefits stopped entirely for a period of time, I understood her approach.
In a nut shell SS “tax” is taken from your earnings over the course of your working years to provide money in retirement. Basically a government mandated savings account for retirement. The SS Admin determines your monthly payout at various ages. Then you take SS and they tax it as income. I call BS! Savings account. My money. Give it back!
It would help everyone if the Earnings limit was discarded. Especially when you consider the amount of taxes you Still have to pay when you retire. It would keep many people in their homes and off of additional Government support like medicaid, by keeping more of their money available to them for those expenditures.
I have searched and searched for someone that can answer my questions as I am about to turn 62 and wasn't sure if I should file early even though my husband will wait until his full retirement age. My biggest concerns were answered by you in this video. Thank you so much for being so entirely informative and not just giving partial answers like so many others out there do.
Devin, you just posted the most timely video in regards to my situation now that I have started to receive retirment benefits at 64. Thanks, so much. I do have an important question that is likely relevant to others who are (or will be) retiring early and planning to work up to the annual limit. Do the gross earnings per calendar year include ALL WAGES RECEIVED- or just your wages EARNED in the calendar year? You see, my first paycheck received for this year, 2022, was solely for wages earned through 12/31/2021 (the end of last year). Not a penny of 2022 wages on it. Furthermore, my second paycheck included some overtime earned in 2021. Thus, I need to know if those can be considered backpay and subtracted from the GROSS wages on my paystub this year? Also, I will have at least one week's PTO coming to me on a final paycheck, once I quit. Are those included (or excluded) from the earnings limit, if I have resigned and performed no more work for wages prior to that? I would really appreciate some clarity there, as I am trying to calculate the date when I must quit my job to avoid overpayment. It could make the difference between quitting three to four weeks later than planned.
Excellent! Pension payments don't count! That's what I was writing to ask when you put it first thing on your list. When I retire at 62, my private pension payment will be greater than my SS payment and that's what I was wondering about. Now my next question would be if I could get by pretty good on just my company pension, do you think that it's better to apply at 62 and invest the SS money for 8 years; bird in hand.....; or wait 8 years until 70 for the greater payment. Odds are I may live till mid 90's; God willing.
Please Help. My question is different. I was on disability from a botched surgery. Born in sept of 1955. When I turned 65 I received a letter that my disability was now going to be social security. No choice since I didn’t work. I have an adult disabled son. Denied disability. There is a program we may be eligible for as me as his caretaker. At this age of 66 and a half, am I limited to the 19,560 since I had to retire at 65? I desperately need this extra money to take care of my son. My husband is still working and will be 60 in May. Please please advise me as I read on line that born in 1955, I could make up to $51,960. At what age am I able to make up to the higher amount. Love your channel. Thank you and God bless
Devin are you going to make a video about the social security disability payments pretty please I hope you do I really want to be educated by you about that stuff
this yr you can earn 21240....is this annual or can you make all 21240 in a few months and nothing the other months......do they ding you the months you earn 1770?
Excellent video, answered most of my questions. I'm slightly confused about one thing: I made a lot more than my spouse, so I'll be collecting my benefit, and my spouse will be collecting the spousal benefit (1/2 of mine). However, when I retire, my spouse will still be working. Based on what you said, it sounds as if my spouse working won't affect my SS benefit, and also, since I'm not working now, my spouse working won't affect my spouse's "spousal" benefit (1/2 of mine), since I'm not working. Do I have this correct? Or does my spouse continuing to work affect either of our benefits? Thanks!
Devin I truly do appreciate all of the work you put into your Videos It's just really Discouraging how little our so called elected officials actually care About Retired people who most of us have worked hard all of our Lives. The Reason their is an Earnings Limit is for one reason and one reason only in my opinion. And yes especially with the Inflation in it's Runaway form. I feel the only Real Reason we still have an Earnings Limit is because government Knows that statistically when People think they are going to wait until full retirement age. a Major percentage of these people either don't make it to Full retirement age or they Don't last long afterwards. because this is more often then Not correct because if you have a Physically Demanding or extremely Stressful Job everyone knows that is very hard on the Body. So Since this is a Proven Fact Government does everything they Can to Bully people into not drawing early so The government doesn't have to pay that Social Security out.
They don't care about us because they've made so much money in their lifetime off of us working people that they don't even need social security benefits when they retire.
Three question: Im 68 and collecting SS. If I go back to work, will i still pay into SS? And if so, what happens to that money? Do I benefit at all for paying into SS? TIA
The earnings limit should be eliminated. So taxing social security should be eliminated. We are taxed on what we contributed. I recommend to younger people why save anything, it’s held against you.
I will reach my full retirement age in May 2024 the months leading up to that are calculated how? I heard that the annual amount of money you could make during your full retirement year is somewhere around $59,000 so am I able to make $59,000with them that few months leading up to May, which is my full retirement age? Or is it monthly which may cause me problems
I have thoroughly talk to social security and read all the information on nerd wallet. They say they dont shut anything off and they get offended when you say that. They hold your benefits and it is set on every dollar you make in income. If you make 2 dollars over 1 will be taken off. The annual amount doesnt increase until your FRA year only. If you make any money over the limit your whole check will get held. Social security doesnt pay partial payments. But you will get that money later when your earnings limit goes up which would be your FRA year
If SSI put in an earnings limit, it should come with a free house, all expenses paid, otherwise it's wrong! The SSI office assumes most people who receive it have a paid off house and some form of other retirement savings. A lot don't!
I want to retire and draw social security so I’m so afraid of social security administration messing up the earning limit. How do they test it when some items count and some do not count? How can I protect myself? I’m single so no benefit to wait for an older age to start. IRA distributions don’t count does that include Roth conversions. I plan to stop working Feb 2025 but can’t start social security because I will have income in 2025.
Nerd wallet and Social security lady never mentioned anything about this MSE that you say exists. If you file at the first of the year then it supposed to be based on a annual limit. But you say if you go over even one month then you would get denied. That sounds like as if you started in the middle of the year where its based on monthly. Otherwise why have a annual and a monthly. If your correct and your a seasonal worker like me where during the summer things at work get slow so I can take off for 8 weeks and during winter and fall they increase i would always be in default and get penalty (never receive any checks at all ) even though my total amount at the end of the year will be under the limit). This is due to your MSE in the first 3 months of the year. By the time my wages drop off for 3 months I might get one check then when things pick back up I would be cut off for the rest of the year according to you which neither source said would happen if I start at the first of the year on annual basis. Looks like if your correct I will have to wait till FRA year. But thats not how it is stated on the nerd wallet web site it actually says go ahead and take it now and dont worry about a penalty .
So the SS benefit *is* considered earned income and thus a part of that earning limitation? What percentage is this taxed? If that tax scale varies, what are the parameters that determine the different levels of taxation (on the taxes I've already paid since age 16)?
I will start taking SS in Oct. i have 4 months til end of year. Is the self employment 1st year income limit net pay or is it agi divided by 12 for whole year.
@@juangarcia8828It was a combination of health and financial reasons. I was working 2 jobs and it was time to decide if I wanted to continue wearing myself out working and sleeping 7 days a week or have a life. I was able to quit my weekend job and had 500 dollars more each month between my full time job and Social Security.
I agree a higher earnings limit before FRA would encourage people to build their nest egg at a time when their health is still good. When Social Security is forced to pay a reduced benefit will they raise the income limit? Thanks for all you do Devin.
no, it should not, because those who pay more can contribute to others who are less fortunate, besides they make so much money that they would save a lot more.
Great content Devin, can you confirm that my military retirement and VA Disability Payments would NOT count toward the income limit? I’m pretty sure they don’t, but really would like some confirmation that I haven’t been able to find. Thanks.
Watch 9:25 "What Counts As Earnings" Those benefits are not EARNED income; they are pension income/passive income. My federal retirement won't count against my SSDI payments.
Question. My question isn't about wages it's about receiving money from a property sold. Do I have to turn in the amount received or do I wait until income Tax time. And how much can be received, I'm at full age retirement. Thank You for your videos.
I was told that SS calculated excess income using joint income!! I work part time for our business but that income is below the current 2022 limit. I am at full retirement age but don't need to collect SS benefits right now. My husband intends to keep running his business (tree service) for as long as possible (he is below full retirement age). I'm divorced but remarried at age 53. I may have held off marrying if I'd known I could collect on my ex husband's SS as it is the max. Both my husband and myself have less than average SS benefits. I have a very small pension. It really is a shell game...I considered all of the benefits I'd give up and the return if invested and it appears that even if I don't need to collect benefits now it makes more sense to have the $$ in my bank account because it would take me almost to 80 to make up the difference? Given that I didn't realize I could take SS benefits now without getting dinged for excess income I'm reconsidering my decision to start collecting. Am I thinking about this all wrong? I've made some devastating financial moves in the past by not having all of the information in front of me (even though I paid an 'expert' for guidance). Thanks so much for breaking this down for us...it's hard for me to keep up on it all.
This gentleman means well but he has the Soc Sec income Penalty limits all fouled up. If you collect early & your wife is making 40k.....50k.....60k YOU WILL be taxed for collecting early. He is all mixed up.
Devin you missed the boat. If I collect Soc Sec early but my spouse continues to work and make an income over $32K I WILL BE TAXED ON MY SOC SEC payments. YOU MUST clarify this immediately.
Hey Devin, Thankyou for such great and informative information. Planning on starting to collect my Social Security retirement benefits here in a few months at age 62, but would like to know if the social security administration would consider as income a small gift amount of $500.00 monthly cash received from a relative which is currently my only source of income and would like to know if the social security administation would count the monthly gift amount as income or deduct some of my social security retirement payments regarding receiving this monthly gift. I am single and not working at this time. If you could respond to this question, I would greatly appreciate it.🤗
If reported it will count as income. If it's cash there's no record of it unless the relative claims it on taxes. Don't offer information not traceable. Check with the relative if they claim the expense on their taxes, if not keep it to yourself 😉
T.Y.S.MUCH DAVID Carroll, can i apply 4 social security retirement now. i jst turn 62 last November 2021, no spouse only by my self , n im still working ..how much i can earn..
So, IRAs are not taxable income. I'm assuming you mean all It as, and not just Roth IRAs. Is that right or wrong. What about 401k distributions? Taxed or not taxed? Thanks. I don't see the download of the form you mentioned in the description. Can you please explain in a bit more detail where it is. Thanks again.
OMG I didn't know about these Earnings limits. Earnings limits make the system complicated so get rid of them. SS is taxable income already so Just leave it at that.
Yes eliminate the limit, but only for those making less than the average annual income; which is somewhere around $72000. And use the cpi to adjust yearly
All those years paying social security tax by it being taken before workers even saw it: now they also Tax the Tax distributions? Sounds good to me.....NOT!
Devin I am still confused I will retire in June with a income at that point of $17,500.00 can I collect my monthly gross income working which is $ 2,600.00 and collect my social security does my work gross monthly income count as monthly or annually I get confused easily because my gross monthly work income is over the monthly limit by s thousand please help I am subscribed to your channel
Retire at 62, move to a low cost of living country, sell all your possessions and do the Lord's work there, whatever it may be. Make up for all the s***** things you've done in your life. 😆
Hi. The two significant income items that you did not address is rental income and investment income (e.g. mutual fund income from sales within the specific fund). Thanks.
If a person on social security rents a room in their house to a family member do they have to file income tax on the amount they receive? Like if their ss yearly amount is 23,412. and the rent they receive is 4440. per year, from the rent received, would they be filing for 27,852. per year?
I'm a little confused :) I have a part-time mail order plant business and I only sell/ship from April through October due to weather. I can control what I make, so if I am making $3K a month for 6 months (total $18K) does this mean I am still under the limit of $19,5K? I don't understand the monthly average vs. annual average and where this applies. Also... if I were to make, say, $22K, could I put $4K into my traditional IRA would that then not count as income for that year?
I am 68 and working full time. My plan is to work full time until 70. Recently I am considering changing jobs which could possibly earn less than what I make currently. With this possibility would my monthly SS benefit lower based on whatever my new annual income would be? I love to work how much can I make without it being a disadvantage? I enjoy your videos. Very informative. Thank you.
I subscribed and liked your channel and you couldn’t take the time to answer my question. Not impressed if you want people to support you and subscribe but you are too busy to answer a question
SS isn't intended to be able to support someone. It is meant to subsidize one's income. The intent is to help people after retirement age. It's a perk to get to collect early (up to 5 years now). The earnings limit only is in effect for those taking the payments for those 5 early years. There isn't a limit for someone who has actually reached retirement age. If someone is still working, and earning, then they actually aren't retired. The earnings penalty is for taking a retirement benefit while still gainfully employed. It's nice that a little bit of income is allowed while collecting a retirement benefit; which is the point of the earning limit.
I think dividend and investment income, when realized in a year, should be included in the earnings limit. Why shouldn't people that have benefited from the laws that protect the wealth of the upper middle class pay taxes just like the people that haven't had that privilege?
I did not start collecting Social Security at my full retirement age and waited till I was 70 years old to start collecting Social Security. I am still continuing to work. Are there limits to how much I can earn and what do I pay taxes on the income from working or the income from working and the income from Social security? I've been confused about this for some time. Thanks for your help and answering my question
Love your show lot of good advice thank you very much maybe you should run for president because Joe Biden has got us in a big mess just my opinion anything's better than Joe Biden
Not only that, but more of the SS benefits which you received. will be subject to taxation if you cross certain income thresholds (as Devin explained back on 3/8/22).
