Can I exceed Social Security monthly earnings limit ($1,950) if I stay under annual limit ($23,400)?

The monthly earnings test only applies during the first year you claim benefits. After that first calendar year, only the annual limit matters. So if you started collecting in 2025, the monthly limit applies this year. But starting in 2026, SSA will only look at your annual earnings. During your first year on benefits, you get a 'grace period' where you can receive full benefits regardless of annual earnings for any month you earn under the monthly limit ($1,950) AND don't perform substantial services in self-employment. This helps people who might have earned a lot before retirement but then stopped working mid-year.

thats not right. my neighbor makes like $3000 some months at his job and way less others and SSA only cares about his yearly total. they dont even ask for monthly breakdowns on the report form. i think ur overthinking it tbh

I had the exact same question last year! So frustrating how SSA makes these rules so complicated. When I called, they explained the first year rule that the other commenter mentioned. In your case, since you started in 2025, you'll need to stay under $1,950 each month this year if you want benefits for that month. Next year it'll just be the annual limit that matters.

my sister lost half her benefit when she made $2200 one month even though she barely worked rest of year!!! SS is such a rip off, they TAKE OUR MONEY all our lives then make up reasons not to pay! the whole system is designed to confuse seniors!!!!!

Let me clarify the exact rule here since there's some confusion. The monthly earnings test is ONLY applicable during what's called your "grace year" - typically the first calendar year you receive benefits. During this grace year: 1. You'll receive full benefits for any month you earn ≤ $1,950 (2025 limit) 2. This applies regardless of your annual total 3. This helps people who had high earnings before retirement but then stopped working After your grace year: 1. Only the annual limit ($23,400 for 2025) matters 2. SSA doesn't care how your earnings are distributed by month 3. Benefits are reduced by $1 for every $2 earned above the annual limit So yes, in your specific situation as someone who started benefits in 2025, if you earn over $1,950 in summer months this year, you won't receive benefits for those specific months, even if your annual total is under $23,400. But starting in 2026, only your annual total will matter.

@anxiousretirement - Yes, that's exactly right. In the grace year, each month stands alone. If you earn over the monthly limit in July, you don't get benefits for July. If you earn under the limit in August, you get full benefits for August. Each month is evaluated separately. Since you're applying in November, your grace year will be 2025, and you'll need to stay under the monthly limit for November and December 2025 to receive benefits for those months. Then in 2026, only the annual limit will matter.

Did anyone else notice how they keep raising this earnings limit every year but our actual benefits barely go up? COLA is a joke compared to real inflation.

just be careful about reporting. my cousin didn't report his work and SSA found out from his taxes and made him pay back like $8000 in benefits. they add penalties too