The "Senior Citizens' Freedom To Work Act of 2000" eliminated the Social Security annual earnings test and the foreign work test in and after the month in which a person attains full retirement age (FRA). The FRA is age 65 in 2000 through 2002, but began increasing beginning with 2003. (Click here to find your FRA.)  Earnings in the month of FRA attainment and after do not count towards the earnings test. Only earnings before the month of FRA count toward the earnings test.

If you are under FRA when you start getting your Social Security payments, $1 in benefits will be deducted for each $2 you earn above the annual limit. For 2007, that limit is $12,960; for 2006, that limit is $12,480. In the calendar year you attain FRA, $1 in benefits will be deducted for each $3 you earn above a higher annual limit up to the month of FRA attainment. For 2007, that limit is $34,440; for 2006, that limit is $33,240. For some examples on how this works, see Examples: When you work and get Social Security at the same time.