Social security earnings ceiling
From Wikicpa
Social security payments can be reduced if the individual has earned income and is a certain age.
- If you are under normal (or full) retirement age: when you start getting your Social Security payments, $1 in benefits will be deducted for each $2 you earn above the annual limit. For 2007 that limit is $12,960 and for 2006, that limit is $12,480. Remember, the earliest age that you can receive Social Security retirement benefits remains 62 even though your normal (or full) retirement age is rising.
- In the year you reach your normal (or full) retirement age: $1 in benefits will be deducted for each $3 you earn above a different limit, but only counting earnings before the month you reach your normal (or full) retirement age. For 2007, this limit is $34,440; for 2006, this limit is $33,240
- Starting with the month you reach your normal (or full) retirement age:, you will get your benefits with NO limit on your earnings.
Table:
| Year | Under full retirement age | The year full retirement age is reached | The month full retirement age is reached and above |
|---|---|---|---|
| 2007 | $12,960 | $34,440 | Unlimited |
| 2006 | $12,480 | $33,240 | Unlimited |
| 2005 | $12,000 | $31,080 | Unlimited |
