First year ss benefits

[thomtax]

I believe that I have seen this discussed, but search turns up nothing using my terms.

If a person works for 10 months in the year, and will earn in excess of $80,000, is there a way to show that the earnings were before drawing ss so as to prevent SSA from taking back part of the benefits?

If so, how is this reported?

Thanks,
LT

[veritas]

SS website

I think this is the answer, partly.

http://www.ssa.gov/OACT/COLA/rtea.html

[Roland Slugg]

The link in the above reply does contain the correct information. For those not wishing to follow that link, the $1 for $2 payback will apply to the T/P in question, regardless of when in the year he earned the $80,000, but only for the months, if any, prior to the month he attains his "normal retirement age" (NRA). The NRA is now 66, but it was 65 until 2002, then increased to 66 in 2-month increments between 2003 and 2008.

[veritas]

Well

What it did say was that in the year of normal retirement the max you can make is around 36k for 2008. That seems pertinent to me since thomtax indicated is client will earn 80k. I did assume the client had reached NRA.

[OtisMozzetti]

After benefits are drawn, report earnings monthly

is there a way to show that the earnings were before drawing ss so as to prevent SSA from taking back part of the benefits?

If so, how is this reported?

Thanks,
LT

After benefits are drawn, earnings must be reported monthly, by the 10th of the following month. It is going to be up to the Social Security Administration to rule upon the validity of the evidence presented about exactly when the earnings occurred. They pass out forms where the recipient of benefits must report the earnings under penalties of perjury.

[thomtax]

Thanks everyone

You have confirmed my understanding, but if there was a "loophole" I wanted to check it out.

LT

[FEDUKE404]

The MONTH FRA is attained is very important!

There are actually three categories - $1/$2 repay, $1/$3 repay, and no repay.

From the SS web site:

If you are under normal (or full) retirement age (FRA): when you start getting your Social Security payments, $1 in benefits will be deducted for each $2 you earn above the annual limit. For 2008 that limit is $13,560 and for 2007, that limit is $12,960. Remember, the earliest age that you can receive Social Security retirement benefits remains 62 even though the FRA is rising.

In the year you reach your FRA: $1 in benefits will be deducted for each $3 you earn above a different limit, but only counting earnings before the month you reach FRA. For 2008, this limit is $36,120; for 2007, this limit is $34,440.

Starting with the month you reach FRA: you will get your benefits with NO limit on your earnings.

I would assume the Soc Sec folks somehow can determine the month in which a person earned the wages??

FE