Social Security Key Financial Data

Social Security: Benefits

Retirement Earnings Test
Full Retirement Age (FRA) 1943 - 1954
The earnings test amount in the year a person turns FRA is $41,400, or $3,450 per month.
Benefits claimed at 62
Reduction of 25%
If people under FRA work and receive Social Security benefits, $1 in benefits is withheld for every $2 earned over $15,480.
Benefits after FRA
8% per year credit
No benefits are withheld regardless of earnings.

Social Security: Taxation

Combined income* (joint)
Combined income* (single)
Amount Subject to Tax
Under $32,000
Under $25,000
$32,000 and $44,000
$25,000 and $34,000
Up to 50%
Over $44,000
Over $34,000
Up to 85%
* The income thresholds that determine whether or not Social Security benefits are taxable are not indexed for inflation and therefore remain the same every year. The formula is based on "combined income," also called "provisional income," which includes modified adjusted gross income (MAGI), plus one-half of the Social Security benefit, plus tax-exempt interest.

Check out the latest tax updates for 2015:

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