Q: Is the amount I can earn in 2016 before my Social Security retirement is reduced known yet?
A: Yes. The 2016 amounts will be the same as for 2015. They are not changing.
The annual retirement earnings test concerns how your own employment earnings in a year affect your Social Security in that year. The earnings test includes only your personal gross wages or net self-employment for the full calendar year. Your other income or income of a spouse is not applicable.
Changes to annual earnings test amounts are related to cost-of-living adjustments (COLA). Since there will not be a 2016 COLA change (press release here), amounts earnable in 2016 before Social Security retirement or survivors benefits are reduced will not change either. Read this in COLA information here, which states:
“Will the retirement earnings test exempt amounts change in 2016?
No. The earnings limit for workers who are younger than “full” retirement age (age 66 for people born in 1943 through 1954) will remain $15,720. (We deduct $1 from benefits for each $2 earned over $15,720.)
The earnings limit for people turning 66 in 2016 will stay at $41,880. (We deduct $1 from benefits for each $3 earned over $41,880 until the month the worker turns age 66.) There is no limit on earnings for workers who are “full” retirement age or older for the entire year.”
The earnings test does not apply to people receiving Social Security benefits due to their own disability. If receiving due to disability, contact Social Security before working.