Dear Rusty: I have been working since I started collecting Social Security when I turned 62. Last year I was apparently overpaid because of my job. I made $37,000 and now the Social Security Administration says I owe them $8,800 dollars because I made too much, and they have withheld my $2000 monthly SS payment. I am close to the maximum allowable again already this year. So, I am looking at quitting my job so I don’t go over, but they are holding my payments so then I would have no money. Any help would be appreciated. Signed: Frustrated by Social Security Dear Frustrated: You are being affected by Social Security’s “earnings test” which applies to everyone who collects early Social Security and also works before reaching their full retirement age (FRA). If your earned income exceeds the annual limit (which was $19,560 for 2022), Social Security will withhold $1 in benefits for every $2 you are over the limit. If you earned $37,000 in 2022 you were more than $17,000 over the limit and owe half of that back to Social Security. They usually recover what you owe by withholding your future benefit payments, so they won’t pay you benefits until they have recovered that $8,800, after which your benefits will resume - but only for a while.
