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And on today's show how understanding the taxation of Social Security benefits can help you manage a retirement income part 5 of this week's series on managing Social Security benefits of America's number 1 retirement plan with nationally recognized author platform speaker and retirement expert Tom Hagen Oh hi everyone I'm Steve savant syndicated financial columnist and contributing author to ins mark life specs and backroom technician let's get down to business well welcome to the show hey Steve great to be back Tom I'm I'm I'm so thankful that you're here and today this is the big one because we've told you how all throughout the week strategies tactics you need to know the basics if you can understand this whole week's show this next part is really something we got to play because now on the side we're getting all our benefits that's great but now we're gonna get them taxed now back in the day when they invented this I was told me we didn't have to pay any tax on this so there's two things and people get confused on this Steve there's first there's an earnings test this isn't taxation this is a reduction in benefits for earning too much money if you can't believe it I don't know why the government would say they should be encouraging people to make as much but they're saying if you earn too much we're taking some of it back tax or it's not a tax benefit but in this in the second part of today we're gonna talk about the taxation but there's a lot of confusion around this so let me let me try to clear up a little bit anyway so here's the deal if you retire at your full retirement age which for some people is 66 for some people is 67 for some people is in-between you know there's no penalty so once you reach full retirement age you can make as much as you want they're not gonna take any of your Social Security benefits back if you retired let's say at 62 and you start taking your Social Security benefits they're gonna take back one dollar in benefits for every two dollars that you earn over fifteen thousand seven hundred twenty dollars and then in the year of your full retirement just to make it really complicated they're gonna take back one dollar in benefits for every three dollars earned over forty one thousand eight hundred eighty dollars so if you work prior to age 66 or 67 they will take some of your Social Security back if you earn more than these levels well now I'm hearing two things now to make sure I got this right at the beginning of the week you said if you start at 62 we get a reduced benefit right but now I'm working on top of that it reduced is it even further even further oh my goodness out now here's something a lot of people don't know when they reduce it and they take it back that money isn't gone seed for years I thought it was gone it's not gone what they do is they put it back into the calculation for future years so like if you were working and you did give up benefits your future Social Security benefits will be higher...