By Sandra Block
From Kiplinger’s Personal Finance
Question: I recently retired at 63 and claimed Social Security. But I plan on working part-time to earn some extra money. Would that reduce my Social Security check?
Answer: If you file for Social Security before you reach full retirement age (66 to 67 for most workers) and earn income from a job, Social Security applies the “earnings test” to your income and will withhold a portion of your benefits once your earnings exceed a certain threshold.
In 2023, you can earn up to $21,240 before Social Security will withhold $1 in benefits for every $2 you earn over that amount. If you reach full retirement age in 2023, you can earn up to $56,520 before Social Security will withhold $1 in benefits for every $3 you earn over the limit. In the month you reach full retirement age, the earnings test disappears….