A question about SS benefits?

If you retire early, can you still work part-time? And how much money are you permitted to make? What happens if you make over the limit?

If you retire at 62, then between 62 and 65 you can make a little over $14,000/yr in earned income. After you turn 65, you can make up to something like 35K per year. After you turn 66, there are no restrictions on income. The rules are somewhat different if you're self-employed. I think you're limited to 14K for the entire year in which you turn 65 because they can't tell from a 1099 just when in the year you earned your income. In the year you turn 66, I think they prorate the amount you can make depending on when you turn 66. That doesn't seem consistent with the 65 rule, but I think that's the way it is.

These numbers and rules are only approximate, and based on my recollection. I think the SS website might have much better information.

The only thing that changes (in that year) is the tax consequences of receiving both SS income and other forms. (W2, 1099, W2G, K1, etc)

After that a modified benefit will apply if you exceed the ceiling for early retirement.

That's gross, not net.

If you make over the 14K limit??

Then your Social Security payments are adjusted accordingly. After the year ends, when Social Security learns the exact amount you earned for the prior year, you are refunded any excess that may have been withheld if you estimated too high, or you receive an overpayment letter if you estimated too low.

At the beginning of the year or at the end of the year?

Then a mailer goes out in late summer each year to all beneficiaries who are still working asking them if their current estimate is still accurate and what the estimate will be for the next year. Or if they have stopped working.

Which is age 66. It does not take effect at age 65.

And make as much as you want.

The only sticking point is that MAGI makes more of your benefit taxable.

The following calendar year, SS might reduce your benefits by as much as 25%, though.

If you take early retirement your Social Security is reduced by one half of the excess over $14160.00 in earned income. Except for the year you turn full retirement age. In that year from January 1 until the month you turn FRA (usually age 66 now) you are under a higher limit and only one third of the excess would be used to reduce the amount of Social Security due you.

and have been overpaid in Social Security benefits equal to one half the excess of what you earned over $14160.00. The statement that you can earn over this amount and still receive all your checks is wrong -- you will either be reduced in benefits for the current year using an estimate you give Social Security or you will have to pay it back the next year if you exceed the earnings limit.

MAGI is not used for this purpose. MAGI is used to determine how much one pays for Part B of Medicare, not for determining the amount of benefits due a person for the year. MAGI is the adjusted gross of all sources of taxable income one has. This could include pensions, anniuties, stock profits, interest, etc. The annual earnings test is based solely on W2 earnings for the year for the individual receiving benefits. Or, in the case of self employment, the net earnings on a tax return.

?

Separate calculation method regarding Social Security.

on hold anytime after you start taking it. I think they tax or take away 1 dollar of benefits for every 2 you make over the limit. If you put it on hold, you will get about an 8% increase for every year you put it on hold, when you do take it.

is on unemployment. His payments are higher than his retirement. Would going on SS stop his unemployment income?

It depends on the state you live in. You'd have to call the unemployment people in your state, or your brother's state.