Ssa Benefit Reduction

[paulfr]

Is anyone out there recieving US SSA benefits

that are reduced due to working pay that exceeds

the $13,160 limit ?

This would be for those who have not

reached Full Retirement Age [FRA].

At FRA one can earn as much as one desires

without a reduction in monthly benefits.

My questions ....

1/ Is work outside the US treated differently than work

done in the US ?

2/ Are there additional restrictions ?

3/ Do they care that you are not making SSA monthly

contributions as you would be if working in the US ?

Thanks for the help

Edited February 20, 2009 by paulfr

[lanny]

The rule for reduction in SS benefits IS different for those working outside the US.

If you are below your full retirement age and drawing SS benefits, the amount of that benefit is reduced if you earn (that is salary, etc.) more than $13,160 per year

However, if you are working outside the US, the way the benefit reduction is calculated is different. The maximum is not a dollar amount but the amount of work you do. Benefits are taken away if you work more than 40 hours PER MONTH! And, if you work less than 40 hours per month, you have to explain to the SSA why you work so little!

[PeaceBlondie]

The rule for reduction in SS benefits IS different for those working outside the US.

If you are below your full retirement age and drawing SS benefits, the amount of that benefit is reduced if you earn (that is salary, etc.) more than $13,160 per year

However, if you are working outside the US, the way the benefit reduction is calculated is different. The maximum is not a dollar amount but the amount of work you do. Benefits are taken away if you work more than 40 hours PER MONTH! And, if you work less than 40 hours per month, you have to explain to the SSA why you work so little!

lanny is right, as usual. Not only are the benefits taken away, they are COMPLETELY DENIED for any month in which you admit working 40 hours or more! So I learned he day I submitted my application for early SSA benefits.

http://ssa.gov/pubs/10137.html

Which was a great incentive to stop teaching in Thailand. Also, SSA sends you an annual questionnaire to fill out, under penalty of perjury, that asks how much you worked while collecting early benefits. And if you do not reply, they stop your check!

[Lost in LOS]

The rule for reduction in SS benefits IS different for those working outside the US.

If you are below your full retirement age and drawing SS benefits, the amount of that benefit is reduced if you earn (that is salary, etc.) more than $13,160 per year

However, if you are working outside the US, the way the benefit reduction is calculated is different. The maximum is not a dollar amount but the amount of work you do. Benefits are taken away if you work more than 40 hours PER MONTH! And, if you work less than 40 hours per month, you have to explain to the SSA why you work so little!

is the etc any income such as interest? that is all i get and how does ss figure into that. ss just added to the interest income and subtract the 13,160 ? sorry, but i am confused and about to get my first check in may

[PeaceBlondie]

The rule for reduction in SS benefits IS different for those working outside the US.

If you are below your full retirement age and drawing SS benefits, the amount of that benefit is reduced if you earn (that is salary, etc.) more than $13,160 per year

However, if you are working outside the US, the way the benefit reduction is calculated is different. The maximum is not a dollar amount but the amount of work you do. Benefits are taken away if you work more than 40 hours PER MONTH! And, if you work less than 40 hours per month, you have to explain to the SSA why you work so little!

is the etc any income such as interest? that is all i get and how does ss figure into that. ss just added to the interest income and subtract the 13,160 ? sorry, but i am confused and about to get my first check in may

No, it is only talking about earned income, such as salary and self-employment. You have a companion thread here about the SSA pension being partly taxable.

One loophole in the earnings test for foreign income is that if you report and pay SE tax on net self-employment income that you earned overseas, you still get your early SSA pension, for months in which you paid the SE tax, even if you worked over 40 hours.

[paulfr]

One loophole in the earnings test for foreign income is that if you report and pay SE tax on net self-employment income that you earned overseas, you still get your early SSA pension, for months in which you paid the SE tax, even if you worked over 40 hours.

Does this loophole apply if you are an employee such as a teacher ?

Can you report your salary and pay the 15% SSA tax and then work as much as your please

without a benefit reduction ?

That would be very nice.

Edited February 21, 2009 by paulfr

[paulfr]

Bump