Believe it or not the Social Security Administration website SSA.Gov has some great tools and calculators.
Not sure how to use them?
Have no fear the Social Security Teacher is here! I have been waiting a while to use that line :).
The first calculator in our How To Calculator Series is the Earnings Test Calculator.
Before I start explaining how to use the calculator let me briefly go over what is the earnings test.
The earnings test only applies to filers who have not reached full retirement age (FRA). For more on full retirement age, please read my article: The Basics: Full Retirement Age and Social Security.
According to SSA.gov, Social Security withholds benefits if your earnings exceed a certain level, called a retirement earnings test amount. Again, this only applies to filers who have not yet reached their full retirement age.
To put it simply, if you are still working and file to receive benefits in years before you reach your FRA, most likely your Social Security benefits will be reduced. Social Security will deduct one dollar from every two dollars you earn above the annual limit. The limit for 2016 is $15,720, and for 2017 it is $16,920.