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

Just wanted to share my experience since I went through something similar. I'm 64 and started benefits last year, so I dealt with the monthly limits during my grace year. What really helped me was keeping detailed monthly records of my earnings and planning my work schedule around the limits when possible. One thing that wasn't mentioned yet - if you do exceed the monthly limit and lose benefits for those months, those "lost" benefits aren't gone forever. SSA will recalculate your benefit amount when you reach full retirement age to account for the months you didn't receive payments due to earnings. It's not a dollar-for-dollar recovery, but you do get some credit back. Also, make sure you understand what counts as "earnings" - it's generally wages from employment and net earnings from self-employment, but things like pensions, investment income, and rental income typically don't count toward these limits. The SSA website has a good breakdown of what counts and what doesn't.

This thread has been incredibly helpful! As someone new to Social Security, I was completely unaware of the difference between the first-year monthly limits and the ongoing annual limits. It seems like SSA could do a much better job explaining this distinction in their materials - I've read through several pamphlets and none of them made this "grace year" concept clear. One follow-up question: when you report your earnings to SSA, do you need to provide monthly breakdowns during that first year, or do they figure out the monthly amounts from your annual report? I want to make sure I'm documenting everything correctly from the start to avoid any issues down the road. Also, for anyone else in a similar situation with seasonal work - it might be worth calculating whether the lost benefits during high-earning months plus the small FRA adjustment later is better or worse than trying to cap your hours to stay under $1,950 each month. Depends on your hourly rate and how much extra work you'd be turning down.

I'm in a very similar situation - started benefits at 62 this year and work seasonally at a beach resort. What I've learned from experience is that you really need to track your monthly earnings carefully during this first year. I use a simple spreadsheet to monitor where I am each month. One thing that helped me was talking to my employer about potentially splitting some of my summer earnings - like getting a small bonus paid in a lower-earning month instead of all during peak season. Some employers are willing to work with you on timing if you explain the situation. Also, don't forget that the monthly limit is based on gross earnings, not take-home pay. So if you're close to the $1,950 limit, factor in your full wages before taxes and deductions. I made that mistake in my first month and went over by about $100, which cost me my entire benefit for that month. The good news is that once you get through 2025, you'll only have to worry about staying under the annual limit, which gives you much more flexibility for seasonal work patterns.

I just want to thank everyone who contributed to this thread - this has been the most helpful explanation of the Social Security earnings limits I've found anywhere! As someone who's been dreading the paperwork and confusion around working while on benefits, you've all made it so much clearer. The key takeaways I'm getting are: 1. First year = monthly limits ($1,950 per month in 2025) 2. After first year = only annual limits matter ($23,400 in 2025) 3. Keep detailed monthly records during your first year 4. Consider timing of bonuses/extra pay if possible 5. Remember it's gross earnings, not take-home 6. Lost months get some adjustment at FRA, but it's usually small I'm bookmarking this thread to refer back to! SSA really should hire some of you folks to rewrite their pamphlets - you've explained in a few comments what took me hours of reading confusing official materials to sort of understand. Much appreciated!

As someone who just started collecting benefits this year and also works seasonally, I want to echo what others have said about how poorly SSA explains the first-year monthly limits. I spent hours on their website and calling (mostly getting busy signals) before finding clear answers. What helped me was creating a simple monthly tracking system and having a frank conversation with my seasonal employer about the situation. They were actually quite understanding and helped me structure my schedule to stay under $1,950 in most months, while still getting the hours I need during our busy season. One additional tip I haven't seen mentioned - if you're close to the monthly limit, remember that things like overtime pay, holiday pay, and shift differentials all count toward that $1,950 gross limit. I learned this the hard way when a holiday shift pushed me over by just $75, costing me my entire benefit for that month. The silver lining is that this is truly just a first-year issue. Once we get to 2026, having that annual limit flexibility will make seasonal work much more manageable with Social Security benefits. Hang in there!