Full question: At age 62 I’m going to apply for Social Security and still work part-time. I will purchase health insurance on my own. Can premiums paid be deducted from income earned to conform to earning limits to avoid penalties?

Hello,

Unfortunately, no. There are no strategies that can lower your earned wages to stay below the earnings test.

The earnings test is based on gross wages and anything above that limit will subject you to earnings deductions. In this case, you may want to reconsider collecting early for several reasons and you will want to avoid an overpayment as well.

An RSSA can work with you to create a personalized Social Security analysis & plan to help you understand your options and the rules you should be aware of to help you decide the optimal time to claim benefits.

Best of luck,
Martha

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