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People „ getting social security checks will be able to earn more this year before any of their social security benefits are withheld.
In 1981, a person under 65 can earn $4,080 before any checks are held back, while the annual exempt amount for people 65 or older in 1981 is $5,500.
If a person's earnings exceed the annual exempt amount. $1 in benefits is withheld for each $2 of earnings above the exempt amount.
People should notify social security as soon as they think their annual earnings might exceed the exempt amount. This way they can avoid receiving any incorrect payments that might have to be repaid.
There is a special rule that applies to the year in which a person retires. In the year of retirement. people can receive checks for any month their earnings do not exceed the monthly limit even though total annual earnings are well above the annual exempt amount.
The 1981 monthly limit is $458 for people 65 or over and $340 for people under 65.
People who want more information about the annual earnings test can obtain a free copy of the leaflet, "How work affects your social security check,” at the Culpeper social security office. The office is located at 522 Culpeper Shopping Center and the telephone number is (703) 825-3500.
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