One more important point: The earnings limit applies only to earned income (wages or self-employment). It does NOT apply to investment income, pension payments, annuities, capital gains, or other government benefits. So if some of your $38,000 comes from these sources, it wouldn't count toward the earnings limit.

Don't panic! This is actually a pretty common situation and it's not as bad as it seems. The key thing is to report your expected earnings to SSA as soon as possible - don't wait until tax time. You can do this through your mySocialSecurity account online or by calling them. They'll adjust your payments going forward rather than demanding a lump sum repayment. Since you're earning $38K and the limit is $22,320, they'll withhold about $7,840 total ($15,680 over ÷ 2 = $7,840). This typically means they'll stop your monthly checks for several months until that amount is recovered, then resume payments. The silver lining is that when you reach your Full Retirement Age, SSA will recalculate your benefit to account for those withheld months, giving you a permanently higher monthly payment. So while it's stressful now, you're not actually losing that money long-term.

I went through a similar situation with my disabled adult child and multiple minors a few years ago. One thing that really helped me was creating a spreadsheet to track all the different scenarios before making applications. Here's what I'd suggest documenting: - Your current family maximum ($2,675) - Each person's theoretical full benefit amount (50% of your PIA) - The proportional reduction when everyone applies vs. different combinations For your disabled daughter specifically, make sure you understand that once she switches from SSI to DAC benefits, she can't easily switch back if the numbers don't work out as expected. The good news is that DAC benefits typically provide more stability and freedom than SSI long-term. Also, don't forget that your minor children's benefits come with an earnings test if they work - something to consider as your 14-year-old approaches working age. The key is getting those actual calculations from SSA rather than trying to estimate. Every family's situation is unique, and the bend points in the family maximum formula make it nearly impossible to calculate accurately without their system.

I'm dealing with a very similar situation right now - disabled adult child on SSI plus minor children eligible for benefits on my record. One thing I learned that might help you is that the Social Security Administration has local offices that can sometimes provide more detailed, personalized assistance than the national phone line. I made an appointment at my local SSA office and brought all my documentation - my disabled child's medical records, proof of disability onset before age 22, and information about everyone's current benefits. The representative was able to run actual calculations showing exactly how much each person would receive under different scenarios. What really surprised me was that even though the family maximum seemed like it would drastically reduce everyone's individual benefits, the total household income was still higher when everyone applied. The key factor was exactly what others mentioned - my disabled child's SSI just adjusted down to fill the gap, so we weren't really "losing" money, just shifting the source. The other huge advantage of switching from SSI to DAC benefits is that your daughter won't have to worry about those restrictive asset limits anymore. She could potentially save money, have a small inheritance, or even get married without losing benefits - none of which is possible with SSI. I'd definitely recommend making an in-person appointment if possible. The local office staff seemed much more knowledgeable about these complex family situations than the phone representatives.

BTW be careful about any retroactive benefits they might try to give you!!! My friend switched at her FRA and they offered her 6 months of retroactive benefits which SEEMED great but actually permanently reduced her monthly amount!!! The rules are super complicated and the reps don't always explain everything correctly.

I'm going through something very similar right now! I'm 63 and have been on survivor benefits since my wife passed in 2022. The online system is absolutely useless for our situation - I get the same message about information not being available. What I ended up doing was calling the SSA national number (1-800-772-1213) early in the morning around 8 AM when they open. The wait was still about 45 minutes, but much better than later in the day. The agent was able to pull up my estimated retirement benefit right over the phone and explain the difference. In my case, my survivor benefit is higher, but she also explained that I could potentially switch to my own retirement benefit later if it grows enough with delayed retirement credits. The key thing I learned is that you really need to speak with someone directly - the online tools just aren't designed for people in our situation. One tip: have your Social Security number and your late husband's SSN ready when you call. They'll need both to access all the information.

EVERYONE impacted by WEP and GPO should join advocacy groups fighting to repeal these unfair penalties! There are bills in Congress almost every year to reform or repeal them but they never pass because most people don't understand these rules until they're personally affected! I'm part of a retired teachers group that's lobbying on this issue. The Social Security Fairness Act would repeal both WEP and GPO but it keeps stalling in Congress. Google "repeal WEP GPO" to find groups in your state working on this. Public servants are getting ROBBED of benefits and it needs to STOP!

I'm in a very similar situation - divorced teacher with a state pension trying to figure out the GPO maze! One thing that helped me was getting a copy of my Social Security Statement online at ssa.gov/myaccount to see what MY estimated benefits would be on my own record vs. what I might potentially get as an ex-spouse (before GPO reduction). Also, I found out that some states have different pension systems - mine allows "dual coverage" where I paid into both Social Security AND the state pension for certain years. If you had any years like that, those might affect your calculations. The key thing I learned is that GPO is based on your GROSS monthly pension amount, not what you actually take home after taxes and deductions. So if your pension statement shows $2,250 gross but you only get $1,800 after taxes/insurance, they still use the $2,250 for the GPO calculation. Definitely worth getting professional help navigating this - the rules are so complex and the stakes are too high to guess wrong!

As a newcomer to this community, I have to say this entire discussion has been incredibly enlightening! I'm about 18 months away from my own early retirement decision and had no idea about the Monthly Earnings Test for the first year - this is exactly the kind of real-world information you can't easily find on the SSA website. What really stands out to me is how many different experiences people have had, which seems to depend on whether they qualified for that "grace year" provision or not. For anyone else following along who might be in a similar situation, it seems like the key takeaways are: 1) There ARE two different earnings tests, 2) The monthly test can be much more favorable if you qualify, 3) You need to specifically ask SSA about the "grace year" provision by name, and 4) Get everything documented in writing. Andre, I hope you get the clarity you need when you call SSA directly - please consider updating us on what you learn, as I'm sure others will benefit from your experience! This community is such a valuable resource for navigating these complex decisions.

As someone who recently navigated this exact situation, I can add some clarity here! I claimed my Social Security benefits at age 64 in March 2024 while still working part-time, and I was initially just as confused as you are about the earnings test timing. Here's what I learned from my SSA representative: If you're claiming benefits for the first time and have significantly reduced your work activity (what SSA calls a "grace year"), you'll likely qualify for the Monthly Earnings Test for the remainder of your first year. This means from May through December 2025, you'd be evaluated month-by-month using the $1,770 monthly limit rather than being subject to the full annual limit. The key is that "substantial reduction in work activity" requirement - since you mentioned you're reducing from full-time to part-time consulting, you should qualify. Each month after you start benefits, if you earn under $1,770, you get your full benefit for that month. If you earn over $1,770 in a specific month, you simply don't receive benefits for just that month - no penalties or payback issues. Starting in 2026, you'd then be subject to the standard calendar year earnings test (January-December). I'd definitely recommend calling SSA and specifically asking about the "Monthly Earnings Test" and "grace year provision" - use those exact terms. The regular customer service reps are more familiar with these concepts when you use the official terminology. This monthly approach was a game-changer for my planning since I could take on higher-paying projects occasionally without worrying about exceeding an annual limit. Hope this helps with your budgeting!