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My mother wants to start collecting Social Security at 62 and still continue her small business. How do Schedule C earnings affect her ability to receive Social Security?

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David Gadberry
Per the Social Security website:

If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2012, that limit is $14,640.

In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age.

Refer to these 2 websites for more information:
www.socialsecurity.gov/retire2/whileworking2.htm
www.socialsecurity.gov/retire2/whileworking.htm
Leave a Comment 226 weeks ago

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Judd Conway
As a general rule, the longer one defers receipt of social security the higher the monthly payments. Unless your mother needs the money from SS, she is better off deferring receipt of it until as late as possible - age 70 is ideal. The amount she received at age 62 is significantly less than what she would receive at full retirement age. As I recall it there is about a 25% fall off at age 62. (Example: If the amount she would receive at age 66 is $1,200, her monthly payment at age 62 is $900. It goes up about .667% a month for each month she delays filing.)
Reply 220 weeks ago


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