Why does the Social Secruity Administration penalitize you when you make over a certain limit per year? You are paying Social Security on what you earn and what you are receiving for Social Security is yours. So why the penality. When did this law become law?

This has been the law for decades, and it was passed to discourage retired persons from competing with younger folks for limited job opportunities.

The law HAS BEEN modified that NO penalties are incurred if you have reached full retirement age, which varies from age 65 to about age 68. So, if you are at or beyond FULL retirement age, you can work as much as you want with NO penalty.

Do I ever receive the penalty money back?

No, not if the penalties were appropriate when assessed.