Social security benefits are a good way to make your life move easy and smooth. Many people benefit from this and they have seen it work in a nice way for them. If you are in a position to claim these benefits, then you better do it since there is so much that you will be benefiting for. The good thing is that there is nothing to struggle about here.
However, you need to understand as much as possible about social security before you can even know how much you can earn in 2019. Do you know how to test for social security earnings? Do you know when you are eligible for social security?
What is Social Security?
Basically, this is a system in any government that is designed to provide people with no income or very little with assistance. This means that you receive some income from the government if you are proven to be unable to work due to disability, health or old age. At the same time, you will receive if you are earning very low. In this case, the government has a limit on how much is low and for what age.
Is it possible to receive social security when you are working?
The answer is yes. People who have jobs are also eligible for social security benefits and earn money but in a special manner. When looking at a special manner it means that your benefits will not be the same as those who are not able to work.
If you want to get social security benefits before reaching your full retirement age, then the benefits will be less. This is because you are only allowed to collect full benefits of social security only when you reach full retirement age.
However, there are various adjustments that are made by the government in relation to wage trends on a yearly basis. These are changes that seek to control earnings from social security. For every amount of money, you earn above mark put for social security then you will be deducted a certain percentage from your social security.
To be able to earn from social security in 2019 and you are working then you need to take the social security earnings test.
Social Security Earnings Test
A social security earnings test basically refers to a type of test people who apply for social security benefits before they reach their full retirement age undergo. This is basically meant to determine how much you qualify and how much you can earn as you earn your salary.
The full retirement age is considering an age in which you are eligible to collect all your social security benefits. Different governments have set their own age limit for this. However, many fits of rage from 65 years
Three types of social security tests and how much you can earn from them in 2019
1. Those who will reach full retirement age after 2019
This is a category whereby; you have already applied for the social security benefits but you have not attained the full retirement age. In addition to this, you will only attain this age after this year, 2019.
This means that for every $2 you earn above $1, 470 per month or $17, 640 per year, you will have $1 deducted from the social security earnings.
In this case, it is important to note that you are eligible to earn $1, 200 retirement benefits per month in 2019.
2. Having reached your full retirement age in 2019
This is the best part. As long as you reach your full retirement age in January this year then you will not suffer any deductions from social security earnings.
As a result, you are free to collect all your social security earnings irrespective of your current earnings. In this case, you can earn as much as you want per month or per year and still collect 100% of your social security benefits.
3. Reaching your full retirement age within 2019
In this case, there are better terms irrespective that you will still suffer the social security earnings test. However, the limit for your earnings to attract deductions will be higher since it is your full retirement year. The limit goes to $46, 920.
Another thing is that the social security test deductions will only apply for the months before you reach your full retirement age. That means, if your birthday is in September, you will only be accessed and deducted for the months between January and August.
The deduction rate is also lower in this case. In that, you will $1 for every extra $3 you earn above your social security earnings which is much better than those not reaching their full retirement age in this year.
Notable Social Security Changes in 2019
In the year 2019, there are a number of changes that have taken place that may in one way or the other affect your earnings. It is important to take note of these changes if you want to know how much you will earn from social security in 2019.
Highest Taxable Earnings up to $132, 900
It is true to say this does not come as a very negative thing since it has its own flip side. However, this is a figure that has risen from $128, 400 in 2018 to $132, 900 in 2019 noting that the tax rate remains the same at 6.2%.
On the other side, the maximum amount of earnings that are used to calculate the retirement benefits have increased to $2, 861 in 2019 as opposed to $2, 788 in 2018.
- 2.8% increase in Earnings
Beneficiaries of social security earnings had something to smile about as a result of a 2.8% increase. This came as the cost of living adjustment effect on their monthly benefits. This comes as a good way to deal with the inflation rates that have also increased.
- An increase for the disabled
There was also a boost for the disabled in 2019. The social security disability benefits increased by $70 for the blind.
Conclusion
The amount of money you can earn from social security in 2019 depends on a number of things. The most important thing is to determine where you fall. For those who have reached the full retirement age, you will get $1, 220 in 2019. For those who have not attained the full retirement age, you will earn based on how much you pass the salary limit. All you have to do is to look at your limits and understand how much will be withheld. And for the disabled people, you will be able to earn $2, 040 per month.
