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Social Security: 3 ways your income could be impacting your Social Security payments

Social Security helps millions of Americans get by each month while they’re in retirement.

social security card and cash for social security payments

Some may not realize how your income today directly impacts your Social Security payments years down the line.

There are some things to keep in mind regarding income and beneft+it payments.


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Here are 3 ways your income will directly impact your Social Security

First, your income throughout your life has a direct impact on how much your benefit payments will be.

The SSA will look at your 35 highest earning years to decide how much you get.

High earners in 2022 will only see the max of $147,000 go toward their benefit for the year.


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The most you pay in Social Security taxes is what will go toward your benefit.

Extra earnings won’t give you bigger checks.

Your 35 highest earning years are what will be averaged together to come up with a monthly payment.

Second, the amount you make decides whether money will be withheld from your checks if you claim before your full retirement age.

If you’re choosing to work while collecting Social Security before 66 or 67, whatever your FRA is, you could have benefits withheld.


For 2022, you lose $1 for every $2 earned over $19,560.

If you’re at the year you reach your FRA, you lose $1 for every $3 earned past $51,960.

You will get that money back once you reach your FRA in your benefits.


Finally, your income you make while retired, which includes Social Security payments, could be taxed.

Singles making over $25,000 and couples making over $32,000 could see up to 50% of their benefits taxed.

Singles making over $34,000 and married couples making over $44,000 could see 85% of their benefits taxed.

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