Today TaxMama® hears from Thom in the TaxQuips Forum with a question I used to wonder about. “I started collecting Social Security benefits at 62.
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I just started working a few hours a week part time.
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Why are they still deducting SS from my paycheck, since I am collecting benefits?
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”
Dear Thom,
As long as you work, or have a business with a profit, you will be paying into the Social Security system for the rest of your life. That’s how they add funds to pay people who are collecting.
The good news is, if you start earning more than you ever did before, your benefits could increase.
The bad news is, you are under age 66 and you are collecting Social Security early. If you earn more than the annual allowable limit, (2015 is $15,720) you will have to pay back some or all of your SS benefits.
Watch your earnings carefully so you don’t have to repay your benefits – or stop receiving them until you are no longer collecting early.
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Sorry about that. Your Congressfolk write these laws.
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And remember, you can find answers to all kinds of questions about paying into Social Security and other tax and business issues, free. Where? Where else? At www.TaxMama.com.
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