Can I earn $23,400 in 2025 PLUS my Social Security checks, or is SS included in earnings limit?

Oh thank goodness! That's such a relief. I was worried I might have to cut back even more hours at work. So just to be 100% clear - I can receive my full Social Security check AND earn up to $23,400 from my job without any penalty? That's much better than I thought!

And dont forget they count GROSS earnings not take-home pay! I learned that the hard way :

You're supposed to proactively report to SSA if you expect to exceed the earnings limit. They also get information from the IRS, but that's often delayed. If you don't report and exceed the limit, you could face an overpayment notice later. You should call and report your expected earnings for the year when you first file, then update them if your earnings change significantly.

Thank you for the tip! I've called SSA twice now and got disconnected both times after 45+ minutes of waiting. It's so frustrating. I'll check out that service if I need to call again. Did you find the SSA agents were helpful once you got through?

I'm sorry about your brother's situation, but there's a misunderstanding here. The earnings limit absolutely does NOT include your Social Security benefits - it only applies to wages and self-employment income. The SSA website clearly states this. Your brother's overpayment was likely due to something else - perhaps he underreported his work income or there was a calculation error. He should request an explanation and possibly appeal.

That's not quite accurate. SSA applies a monthly earnings test only in the first year you claim benefits. After that, they apply an annual test. They don't typically withhold an entire month's benefit unless you earned more than the monthly limit in that specific month during your first year of benefits. For subsequent years, they calculate the total annual withholding and spread it across the year.

Is that true even in the year you reach FRA? I thought there was some kind of partial rule for that specific year?

You're right to ask. In the year you reach Full Retirement Age (FRA), there's a higher earnings limit that applies only to earnings before the month you reach FRA. For 2025, that higher limit is around $62,000 (exact number may change with COLA). After the month you reach FRA, there's no earnings limit at all. And yes, once you're past FRA, you can earn unlimited income with no impact on benefits.

Yes, you should report your expected earnings when you first apply for benefits, even if you'll be under the limit. This helps prevent miscommunications later. You can do this during your application process. After that, you only need to contact them if your earnings will be significantly different (higher or lower) than what you initially reported.

Thanks for bringing up the self-employment angle! I hadn't even thought about that since I'm just doing W-2 work at the library. But this is really helpful for anyone who might have mixed income sources. It sounds like the calculation can get pretty complicated with 1099 work - do you know if SSA has online calculators or tools to help figure this out, or do you pretty much have to call them to get it right?

SSA does have some online resources, but honestly they're not super user-friendly for mixed income situations. There's Publication 05-10069 "How Work Affects Your Benefits" that has worksheets, but for complex scenarios like yours with both W-2 and 1099 income, you might be better off calling them or working with a tax professional who understands SS rules. I ended up having to call because my freelance work has irregular income throughout the year and I needed to understand how they project annual earnings from quarterly reports.

This is such great advice about keeping records! I'm definitely going to set up a spreadsheet now before I start receiving benefits next month. Quick question - when you say "gross pay," does that include things like overtime pay and holiday pay too? I work at the library and sometimes get called in for extra shifts during busy periods, so my monthly income can vary quite a bit. I want to make sure I'm tracking everything that counts toward the limit correctly.

Yes, absolutely include overtime and holiday pay in your gross earnings tracking! The SSA counts ALL wages reported on your W-2, which includes regular pay, overtime, holiday pay, bonuses, vacation pay when taken as cash, sick pay - basically any compensation from your employer. Since your library hours vary, I'd recommend updating your spreadsheet after each paycheck rather than trying to estimate monthly. That way you'll have an accurate running total and can see exactly when you're approaching the $23,400 limit. It's better to be conservative and track everything than to miss something and accidentally go over!

Great question! From what I understand, SSA typically doesn't notify you immediately when you go over - they often find out when they get your W-2 information from the IRS, which can be months later. That's why proactive reporting is so important. Unfortunately, there's no real "grace period" - if you exceed the annual limit, they'll calculate the withholding based on your total excess earnings for the year, regardless of when during the year you went over. However, if you realize early that you're going to exceed the limit, you can contact SSA to report your expected higher earnings, and they may start withholding benefits sooner rather than creating a large overpayment later. Some people find it helpful to set their own "buffer" - like treating the limit as $22,000 instead of $23,400 to account for unexpected overtime or bonuses.

This is really helpful advice about the buffer idea! I think I'll definitely set my personal limit lower than the actual $23,400 to account for any unexpected income. One follow-up question - if you do end up with an overpayment situation, does anyone know what the repayment process looks like? Do they just automatically deduct it from future Social Security checks, or do you get options for how to pay it back? I want to be prepared for worst-case scenario since my work hours can be so unpredictable.