How Much Can I Make from a Job While on My Husband's Social Security?

Workers are not the only ones entitled to Social Security. A spouse may receive spousal benefits based on the work history of the working spouse. The working spouse must apply and qualify for Social Security benefits and can choose to collect benefits or suspend collecting Social Security retirement benefits until later. The age of the person collecting Social Security retirement benefits makes a difference in earned income penalties.

Early Retirement

Spousal benefits provide a maximum of 50 percent of the worker's Social Security full-retirement-age benefit when the spouse is full retirement age. The benefit for the spouse is 32.5 to 35 percent when the spouse is age 62. In addition to a lower benefit amount, the early retiree may incur Social Security penalties for earned income. You reach full retirement age at 66 if you were born before 1960 and at 67 if you were born after 1960. If you collect Social Security retirement and are less than full retirement age, you are subject to Social Security penalties. In 2011 you can earn $14,160 before Social Security applies penalties.

Penalties

Social Security applies a penalty of $1 for every $2 you earn over the $14,160 annual earnings limit for early retirement years up until the year you reach full retirement age. The year of your full retirement age, a penalty of $1 for every $3 you earn in excess of $37,680 applies. Once you reach your full retirement age, you can earn any amount without penalty.

Other Income

Only your personal earned income counts in calculation of the $14,160 or $37,680 figure for Social Security penalties. If you are self-employed, your net income and not the gross income for the business forms the penalty basis.

Full Retirement Age

When you reach full retirement age, you can collect spousal Social Security, allow your Social Security retirement benefits to accrue, and incur no penalties. You may owe income taxes on Social Security at any age if your combined income totals more than $25,000 filing individually or $32,000 filing jointly as a couple. Combined income calculations include half of your annual Social Security benefits, your adjusted gross income, plus any nontaxable interest you receive during the calendar year. The Internal Revenue Service taxes half of your Social Security benefits for combined income between $25,000 and $34,000 filing singly or between $32,000 and $44,000 filing jointly. The IRS taxes 85 percent of Social Security benefits above $32,000 for single filers and $44,000 for joint filers.

References

• Social Security Administration; How Work Affects Your Benefits; January 2011
• Social Security Administration; What You Need to Know When You Get Retirement or Survivors Benefits; January 2011
• Social Security Administration; What Every Woman Should Know; July 2009
• Social Security Administration; Retirement Benefits; January 2010