If you earn more than the set limit before full retirement age, your Social Security payments can be reduced temporarily until you hit full retirement age.
1. Working While Getting Benefit
Starting Social Security before your full retirement age can lower your monthly checks permanently. Waiting longer increases your monthly amount.
2. Claiming Benefits Too Early
If you owe federal taxes, student loans, or alimony, your Social Security payments might get reduced to cover those debts before you see your money.
3. Owing Certain Debt
If you work for yourself, you’ll need IRS Schedule SE to figure your Social Security tax. It combines both employee and employer shares in one payment.
4. Self-Employed? Use Schedule SE
Your paycheck shows how much Social Security tax has already been taken out. This is a quick way to track what you’ve paid so far this year.
5. Look at Your Pay Stub
Depending on your income, up to 85% of your Social Security benefits could be taxed, which means you end up keeping less of your check.
6. Paying Higher Taxes on Benefit
Changes in marital status, like divorce or remarriage, can affect spousal or survivor benefits, possibly lowering what you’re entitled to receive.
7. Divorce or Remarriage Change