Art you are correct but that figure is only counted towards the "trial work period".

It is so confusing.....


Here is a helpful chart:http://www.socialsecurity.gov/pubs/10003.html#a0=1

Under federal law, people who are receiving Social Security benefits who have not reached full retirement age are entitled to receive all of their benefits as long as their earnings are under the limits indicated below. For people born in 1943 through 1954, the full retirement age is 66. The full retirement age will increase gradually each year until it reaches age 67 for people born in 1960 or later.
2011 2012
At full retirement age or older No limit on earnings No limit on earnings
Under full retirement age $14,160
For every $2 over the limit, $1 is withheld from benefits. $14, 640
For every $2 over the limit, $1 is withheld from benefits.
In the year you reach full retirement age $37,680
For every $3 over the limit, $1 is withheld from benefits until the month you reach full retirement age. $38,880
For every $3 over the limit, $1 is withheld from benefits until the month you reach full retirement age.
Disability beneficiaries’ earnings limits: If you work while receiving disability benefits, you must tell us about your earnings no matter how little you earn. You may have unlimited earnings during a trial work period of up to nine months (not necessarily in a row) and still receive full benefits. Once you have completed your nine-month trial work period, we will determine if you are still entitled to disability benefits. You also may be eligible for other work incentives to help you make the transition back to work.

Substantial Gainful Activity (non-blind) $1,000 per month $1,010 per month
Substantial Gainful Activity (blind) $1,640 per month $1,690 per month
Trial work period month $720 per month $720 per month