Can I apply for Social Security in January and only use annual earnings limit instead of monthly?

YES, you can use the annual limit! When you apply AND start benefits in the same month (like applying in January with January as your benefit month), you can use the annual limit right from the start. You're absolutely making the right move by avoiding those monthly limits - they're a total nightmare with uneven income. I went through this exact situation when I semi-retired in 2023. Applied in February, benefits started in February, and I only had to worry about staying under the annual limit for the whole year. Saved me SO MUCH stress with my consulting income that varied month to month. Just make sure when you apply that your benefit start date is January 2025, not February or later. If you delay your benefit start date past your application month, THEN you'd have to deal with the monthly limit nonsense for the rest of that first year.

I don't think thats right. When I started SS last year they made me use monthly limits for the first year no matter what. Had to report every month I went over. Super annoying!!

Jumping in late, but I wanted to share my experience. I actually used Claimyr (claimyr.com) to get through to an SSA agent about this exact issue. After being hung up on twice trying to call SSA directly, I used their service and got connected to a knowledgeable agent in under 10 minutes. The agent confirmed what others are saying - if you apply AND start benefits in the same month, you can use the annual earnings test. They helped me set up my application correctly, which saved me from months of unnecessary reporting. You can see how it works in their video demo: https://youtu.be/Z-BRbJw3puU Don't trust what you read online (even from me!) - getting confirmation directly from SSA is really important for something this specific.

Here's the technical explanation of the rule, since there seems to be some confusion: In the calendar year you first become entitled to benefits, you can use the Annual Earnings Test (AET) rather than the Monthly Earnings Test (MET) if you are entitled to benefits for ALL months of that year. Since you plan to file in January 2025 with benefits effective January 2025, you'll be entitled for all 12 months of 2025. Therefore, only the annual limit ($25,410 for 2025) applies for someone below Full Retirement Age (FRA). If you had opted to start benefits in February or later, you would indeed face the monthly test ($2,118/month) for the remainder of 2025. Note: If you'll reach FRA during 2025, different (higher) limits apply for the months before your FRA month. After FRA, no earnings limits apply at all.

@profile8 The monthly limit is not simply the annual limit divided by 12. For 2025: - Annual limit: $25,410 (for those below FRA all year) - Monthly limit: $2,118 (for those below FRA) They're calculated separately based on different indexing factors, which is why they don't divide evenly. This is also why using the annual limit when possible is advantageous - it gives you more flexibility with uneven earnings throughout the year.

@OP Be VERY clear when you apply that you want benefits to START FOR JANUARY. Say it multiple times during the application process. Some reps will try to set it for February by default, claiming it's "easier" or "standard practice." Don't let them! When I applied, the rep initially set mine for the following month until I specifically requested same-month benefits. She tried to talk me out of it saying "most people prefer getting next month's payment" but I insisted because I knew about the annual vs monthly earnings test difference. BTW, make sure you apply no later than January 31st. If you miss the January window, you're stuck with monthly limits for the rest of 2025!

sorry but this is confusing me... i thought u CANT apply for SS in the same month u want benefits? i read somewhere u have to apply 4 months before???

WAIT I THINK EVERYONE IS MISSING AN IMPORTANT POINT!!! Even if you use the annual limit, if you earn over the ENTIRE annual limit in a single month, ALL your benefits for the year could be withheld! SSA regulations say if you earn more than your annual limit, they withhold $1 in benefits for every $2 you earn over the limit. If you earn the whole $25,410 in January, they'd withhold your ENTIRE annual benefit!!!! BE CAREFUL!!!

Just wanted to give a quick update. I called SSA today and spoke with a rep who confirmed what most of you have said. As long as I apply in January WITH January as my benefit month, I can use the annual earnings test for all of 2025. I made sure to specifically tell them I wanted January 2025 as my benefit month, not February. The rep did initially try to set it for February saying "that's our normal procedure" but I politely insisted on January, and they were able to do it. So relieved I don't have to track monthly earnings! Thanks for all your help everyone.