Earned income on part time job

Questions & AnswersCategory: Other QuestionsEarned income on part time job
yaya59 asked 6 months ago

My hsband turns 64 this month. He is wanting to retire. He will receive 350.00 pension from where he worked. Also he wants to work part time. I know he can receive up to 16,920.00 a year. Is this amount gross or net? And also will his retirement check be counted as part of the extra income he can receive? Or in any effect his SS amount in any way?

Thank you so much, Debra

1 Answers
Devin Carroll answered 6 months ago

Hi Debra,

The Social Security income limit only applies to wages and net earnings from self-employment. All other income is exempt, including pensions, interest, annuities, IRA distributions and capital gains.

The term “wages” refers to your gross wages. Generally, this is the money that you earn before any deductions, including taxes, retirement contributions, or other deductions.

The SSA has a publication titled, How Work Affects Your Benefits, that has more detail on what they count as "income" for purposes of this earnings limit.

Your husband should keep in mind that his earning’s limit will be higher beginning January 1 of 2019. This is the year he will attain full retirement age. In that year, the $16,920 earnings limit increases to $44,880 (all 2017 numbers).

I wrote an article on this topic which goes into more detail. You can find it at Social Security Income Limits

Hope this helps!