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Will working while retired affect Social Security or Medicare?


Q. I am 70 years and went back to work for a short time. Social Security and Medicare taxes were withheld. Does this affect my Social Security or Medicare amounts?
— Unsure

A. It depends.

The extra income from work could affect your Medicare premiums in the future.

It could move you into a higher tax bracket, said Jody D’Agostini, a certified financial planner with Equitable Advisors/The Falcon Financial Group in Morristown.

“The bands of increase start at $88,000 of income for a single and $176,000 for a married couple that file jointly,” she said. “The monthly payments can go as high as $504.90 per month for Medicare Part B and $77.10 for a Part D prescription plan.”

There are five income brackets. The surcharge would be included two years from now, as the government uses those tax returns to establish premiums, she said.

Your Social Security benefit will not be reduced because you are over the full retirement age, D’Agostini said.

“Even if you are receiving benefits, the Social Security Administration will check each year to see if this additional pay will increase your benefit,” she said. “If the earnings eclipse the previous years, your benefit might be increased.”

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This story was originally published on Aug. 5, 2021. presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.