Social Security: Benefits
Retirement Earnings Test
|Full Retirement Age (FRA) 1943 - 1954||66||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||0
|$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.|
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