If you were born between January 2, 1943, and January 1, 1955, then your full retirement age for retirement insurance benefits is 66. If you work and are at full retirement age or older, you may keep all of your benefits no matter how much you earn. If you are younger than full retirement age, there is a limit to how much you can earn and still receive full Social Security benefits.
If you are younger than full retirement age during all of 2012, Social Security will deduct $1 from your benefits for each $2 you earned above $14,640. If you reach full retirement age during 2012, Social Security will deduct $1 from your benefits for each $3 you earn above $38,880 until the month you reach full retirement age. Benefit payments are made based on the projected amount of earnings that beneficiaries report to Social Security. If earnings will be different than what was originally estimated, it is important to let Social Security know as soon as possible so that payments can be adjusted accordingly.
Be aware also that, with your combined household income with your wife, your Social Security benefits will be subject to income tax. Be sure to plan for this in your tax withholding. You can either overwithold tax from your wife's paycheck or send the IRS estimated quarterly payments.
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