How much can I earn and still receive Social Security benefits?

The Social Security Administration uses the formulas below, depending on your age, to determine how much your benefit must be reduced:

Note: There are different rules for people receiving Social Security Disability.

• 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 2007 that limit is $12,960 and for 2006, that limit is $12,480. 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 2007, this limit is $34,440; for 2006, this limit is $33,240
• Starting with the month you reach FRA:, you will get your benefits with NO limit on your earnings.

Use the following calculator to determine the effect of the earnings test on your Social Security benefits:

For information on the earnings limits for prior years, see Exempt Amounts Under the Earnings Test.

Please Note: Earned income is defined as income from wages or net earnings from self-employment. Pensions, 401K distributions, dividends, interest, and IRA distributions are NOT earned income.