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Thu Mar 11, 2021, 01:36 PM

I have a question.

I went to part time, and still took my Social Security. The past 2 years I only made $15,000 with my part time gig, this year, because I went on medicare when I turned 65, I did not have to pay my insurance with the university. My job ended in December of 2020. My W2 shows my income now at $19,500 which is more than I am allowed to make. What is the penalty? I am terrified I am going to have to pay $2000 dollars back to the feds. I have a ton of medical bills coming due soon.

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Arrow 9 replies Author Time Post
Reply I have a question. (Original post)
redstatebluegirl Mar 2021 OP
flying_wahini Mar 2021 #1
drray23 Mar 2021 #2
JT45242 Mar 2021 #3
drray23 Mar 2021 #4
PJMcK Mar 2021 #5
redstatebluegirl Mar 2021 #7
PJMcK Mar 2021 #9
redstatebluegirl Mar 2021 #6
Backseat Driver Mar 2021 #8

Response to redstatebluegirl (Original post)

Thu Mar 11, 2021, 01:39 PM

1. I think the income limit is per year so I depends on if you made more than the limit you may owe.

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Response to redstatebluegirl (Original post)

Thu Mar 11, 2021, 01:41 PM

2. You should be mostly fine.



The earnings limits are adjusted annually for national wage trends. In 2021, you lose $1 in benefits for every $2 earned over $18,960. If you have a part-time job that pays $25,000 a year $6,040 over the limit Social Security will deduct $3,020 in benefits.


if you are at $19500, you would have (19500-18960)/2 deducted from your benefits which is $270.00

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Response to redstatebluegirl (Original post)

Thu Mar 11, 2021, 01:42 PM

3. According to forbes.com

If you choose to take Social Security before your full retirement age and then go back to work, you may see some of your benefits clawed back. Assuming you are younger than your full retirement age for the entire year, the Social Security Administration (SSA) will deduct $1 of benefits for every $2 of income above the annual limit. In 2020, the yearly limit is $18,240.



Since you are about $1260 above the limit you will have to pay back about $630. Not sure if that goes on Adjusted gross or acutal gross income.

Not sure what the 2021 limit for 2020 earnings is (it usually goes up a little so it will be less than that)

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Response to JT45242 (Reply #3)

Thu Mar 11, 2021, 01:42 PM

4. yes correct and 2021 limit is 18960.

But I guess in her case it would be the 2020 limit that is used.

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Response to redstatebluegirl (Original post)

Thu Mar 11, 2021, 01:44 PM

5. Do you use software like TurboTax?

You should be able to find your answer in the software. I heard about an online service but couldn't find it quickly. Alternatively, an accountant can answer that question fairly easily.

Regarding your medical bills, I know how you feel! I've been there, too. I found that doctors and hospitals were generally willing to be paid over time if I was open about my circumstances and diligent in making the partial payments. Good luck and stay healthy!

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Response to PJMcK (Reply #5)

Thu Mar 11, 2021, 01:46 PM

7. We use Turbo Tax, we just haven't done them yet. My husband is never in a hurry to pay them.

He doesn't cheat he just waits until the last minute to give them our money .

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Response to redstatebluegirl (Reply #7)

Thu Mar 11, 2021, 06:52 PM

9. He's a smart guy!

I've mostly tried to get my returns prepared as soon as I can. Then if I'm owed money, I'll send it in right away. If I owe them, I wait until April 15th. I hate to part with my green!

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Response to redstatebluegirl (Original post)

Thu Mar 11, 2021, 01:45 PM

6. Thanks everyone.

When I took this job, I just thought it would be a little extra money for a couple of years, and it did come in handy for sure. I did not think it would impact my Social Security. I did enjoy working so it was worth it .

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Response to redstatebluegirl (Original post)

Thu Mar 11, 2021, 03:02 PM

8. Beware!

DH had been unemployed but did work less than the full year at a nice living-wage gig (but still a 1099 without benefits) while forced to claim his SS just before full retirement age of 65 late that year. He had been told they would automatically adjust that SS according to the penalty for working before reaching full age for those few months, when extended unemployment benefits (under Gov Strickland) also had ended, but agency never did it despite being told he had been working; several YEARS later (after that gig had long-ended) he got a letter indicating he owed a whopping amount that would end his SS for many months to repay! PANIC TIME! Got something worked out as a result of an appeal, but to add insult to injury, he continued to be unsuccessfull gaining new employment in his field. (Nah, there's no age discrimination - ? ) Now that he's reached an age where there's no penalty on wages, he's returned to work at a FT non-living wage job because SS alone still won't cover bills (that include confiscation of federal tax refunds and multiple repayment plans) and/or housing in safer areas of city/suburb in addition to necessary funds for moving expenses, security deposits, etc...required by landlords. I also suppose the best we could do for healthcare costs would be a restrictive Advantage Plan as supplementals are costly and run through the private insurer sector. Hahaha - approved by Medicare? Been waiting to see if anything changes in the works that could benefit us. We pretty healthy, but need those quality of life issues covered. I had hoped for single payer (gov) at least. I'll have to succumb to those "other" plans next year if nothing happens. Why can't regular Medicare cover vision, dental, and hearing?

Our daughter who is unmarried has had no luck purchasing a home - 10 bids rejected. She had offered to share it with us, but housing costs are out-of-control and right now, in seller's market, there's few listings that don't sell in a single day to a few days to flippers/investors who have much bigger pockets of cash. She's been pre-approved but this is a big problem that seems only to leave her homes in high-crime areas of the city in her price range when combined with this gap crap with the likes of greedy sellers and more fortunate downsizers with available CASH!

Indeed, there's no rest for the "wicked useless eaters" with which the GOP has labeled the unemployed and senior citizens.

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