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Social security earnings limits for 2020

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    Social security earnings limits for 2020

    What is the earnings limit for 2020 for drawing social security before full retirement age? Last year it was $17640. What will it be for 2020? Have a client who will start drawing in 2020 and they ask how much he will earn in 2020? They thought the amount had been lowered. I can't find it anywhere.

    Thanks
    Linda F

    #2
    The SSA site has lots of 2019 information, but I didn't see your specific question answered for 2020. They seem to answer their telephone a LOT better than the IRS, though. Hubby had to call them just last week and said they were quick to answer and very helpful.

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      #3
      Things get extra-complicated for the first "mixed" (before/after FRA attained) year under current rules.
      https://www.ssa.gov/planners/retire/whileworking.html

      As noted here (https://www.ssa.gov/planners/retire/rule.html), the last sentence states "Beginning in 2020, the deductions are based solely on John's annual earnings limit."

      It is possible the 2020 dollar amount has not yet been announced, as we are still three months away from the new year. In any case, you can (hardly) ever predict/calculate to the exact what will happen in 2020, so if you need to know such at the present time you just need to make an educated guess/calculation. One would think that as 2020 draws to a close, your client could then make any minor wage adjustments as might be deemed necessary.

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        #4
        For the past couple of years, the COLA amounts were announced somewhere around the first week or two of October. So it is likely they will announce the 2020 numbers in the next week or two.

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          #5
          It's not going to decrease from 2019 amount. Likely increase will be between 3 and 4%. Like Bill said, actual amount will be released in the next couple of weeks. It's not really a limit, but rather for every 2 dollars over it, SS benefits will be reduced by 1 dollar.

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