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Bill & Jean Burns Wrote: MSN Money posted an article on 2017 changes to SS yesterday. It said in 2017 that those who are working and also receiving SS benefits would not have SS deducted from their paychecks. Is that true?
The short answer is yes, but it's a little more complicated than that.
From everything I'm understanding it's a modest raise in the amount of money someone who collects Social Security can earn in outside income before being penalized.
"The Social Security earnings limit for people age 65 and younger will increase from $15,720 in 2016 to $16,920 in 2017. Social Security beneficiaries who earn more than this amount will have $1 in benefits withheld for every $2 in earned income over the limit. For those who will turn 66 in 2017 the earnings limit increases by $3,000 to $44,880, and the payment reduction declines to $1 withheld for every $3 earned in excess of the earnings limit." MSN Money
The article went on to say that individuals 66 and older will no longer have Social Security taxes automatically deducted from their paychecks and that "your payments will be increased to give you credit for any part of your benefit that was withheld in the past."
It may sound a bit confusing, but it makes sense. If you are 66 and still working you can earn up to $44,880/year before having to suffer a payment reduction of $1 for every $3 earned. And if you are 66 or older and paid that penalty in prior years (after you turned 66) then your monthly benefit will increase to make sure you get the money you paid into the system.