Here's a common Social Security Question on our site:

If you're eligible for Social Security, you can start claiming benefits at age 62. However, claiming benefits before your full retirement age — 66 for Baby Boomers who will turn 62 this year — will permanently reduce your monthly payment by 25% or more. 

But if you go back to work when the economy recovers, your benefits could be further reduced by what's known as the retirement earnings test.

Under the earnings test formula, Social Security will withhold $1 in benefits for every $2 you earn above an annual threshold. For 2009, early retirees can earn up to $14,160 without giving up any benefits. That limit is expected to remain the same in 2010 because the threshold is tied to inflation, which has been negative this year.

Once you cross the threshold, the earnings test can significantly reduce your benefits, or wipe them out. For example, if you're 63, receive $1,200 a month in benefits and earn $30,000 this year, you'll give up $7,920 in benefits, according to the Social Security Administration.

If you earn more than $42,960, you won't receive any benefits. (You can run your own calculations at www.ssa.gov/cgi-bin/retireTest.cgi.)

USAToday provides important information on the Social Security Earnings Test Formula