In the wake of the Great Resignation trend of the last year, the employment market is very competitive. In light of this, retirees who are interested in entering the workforce can do so with relative ease at the present time. If you are currently receiving Social Security benefits, however, you should know that doing so may reduce the amount you get.
To begin, if you want to discontinue collecting Social Security benefits, you can do one of two things. You’re limited to one choice if you’ve been collecting benefits for less than a year. You have the right to revoke your application in this situation; however, you will be responsible for repaying whatever benefits you or your family have already received. This includes everything from Medicare premiums to spousal benefits. You can always submit a new application for Social Security benefits in the future.
For the second choice, you need to be at least 65 years old but under 70 years old to qualify. Your Social Security payments may be temporarily stopped if you so choose. To know best, discuss your situation with an expert CPA in Sanford, Florida.
These methods have two advantages:
By delaying receiving your Social Security income, you can reduce your taxable income, and as a result of the delay and the inclusion of your new salary, your Social Security benefits will resume accruing.
However, if your spouse is getting benefits based on your earnings record, you can keep collecting Social Security payments even if you go back to work. In this case, taxes may be deducted or increased from your benefit. It’s totally income dependent. Your Social Security payments will not be reduced if your annual income is $19,560 or less in 2022.
Keep in mind that only money earned from a job or business can reduce your Social Security withholding. Income from pensions, annuities, investment income, interest, veterans’ benefits, and other government or military retirement benefits is not counted as earned income.
Even better, if you continue working after you reach full retirement age, your Social Security payment will be increased to account for any benefits that were withheld because your income was too high. A greater benefit calculation will be made if the years you worked afterward are among your 35 highest earning years (since you paid FICA taxes on that income).