How much can you make on Social Security in 2010 if you are under the age of 65?

Answer 1

If you were born between 1943 and 1954, you will reach full retirement age at 66. In the year prior to your 66th birthday, the Annual Income Test remains at $14,160, with a benefit reduction of $1.00 for every $2.00 you earn over the limit. Your social security check will be withheld beginning in January of the next year until the entire overage is offset.

If you retire this year, special rules apply to prevent retirees from being penalized for high income earned prior to their retirement date. Nothing you earn before filing for retirement will be counted toward the limit; however, you cannot earn more than $1,180 in each of the months following retirement the first year without incurring a penalty.

In the year you reach full retirement age, you can earn $37,680 annually, but for every $3.00 over the limit, $1.00 is withheld from your benefits until the month your reach full retirement age.

The income cap is lifted completely and permanently the month you reach full retirement age.

Retirement and Earned Income Summary

Retirement year

• No penalty for income earned before retirement
• Can earn $1,180 per month for remainder of first year, if taking early retirement
• Can earn $37,680 per year until birth month if you reach full retirement age during your retirement year
• No income cap and no penalty if you have already reached full retirement age

Age 62

• Apply the first-year rule if retiring at 62

Age 63

• Apply the first-year rule if retiring at 63;
• Otherwise, $14,160 per year earned income cap

Age 64

• Apply the first-year rule if retiring at 64;
• Otherwise, $14,160 per year earned income cap

Age 65

• If born before 1943, no income limit
• If born between 1943 and 1954, apply first-year rule if retiring at 65
• Otherwise, $14,160 per year earned income cap

Age 66

• If born before 1943, no income limit
• If born between 1943 and 1954, income cap of $37,680 until birth month
• No income limit after birth month

Age 67

• If born before 1955, no income limit
• Age 67 will gradually be phased in as full retirement age for people born in 1955 or later

Age 68 and older

• No income limit