If you are under FRA, how much income can you earn before your Social Security check is affected?

The correct answer of $19,560 reflects the income limit for individuals under Full Retirement Age (FRA) for the year 2023. When a person begins collecting Social Security benefits before reaching their FRA, there is a limit on how much they can earn without their benefits being reduced. This amount is adjusted annually.

In 2023, for every dollar earned over the threshold of $19,560, $1 in benefits will be withheld. Once the individual reaches their FRA, they are allowed to earn any amount without affecting their benefits. This income threshold is designed to balance the benefits received with the earnings from work to ensure that subsistence is provided while still incentivizing work.

Understanding this limit is crucial for individuals who plan to begin drawing Social Security benefits before reaching their FRA, allowing them to make informed financial decisions regarding their work and benefit strategy.