Can I work as a 1099 contractor while on Social Security at 62? Worried about hour limits

There is NO hourly limit for Social Security retirement beneficiaries. The person who told you that is confusing Social Security with something else. What matters is your earnings, not your hours. For 2025, if you're under Full Retirement Age (FRA) the annual earnings limit is approximately $22,320. Since you're making about $1,850 monthly as a contractor, that's roughly $22,200 annually - just under the limit. Be careful not to go over. As a self-employed person (1099), Social Security counts your net earnings after business expenses, not your gross income. Also, you'll need to pay both halves of FICA taxes (15.3% total) on your earnings through self-employment tax.

my brother in law is goin thru this right now. he said theres no hour limit but he has to watch how much he earns. he said he cant make more than like $1860 a month or somethng or they take back $1 for every $2 over. gets complicated with 1099 tho

The 45-hour rule you're thinking about might be related to the self-employment test the SSA sometimes uses, but that's primarily for disability (SSDI), not retirement benefits. For retirement benefits at your age, it's all about the earnings limit. Being a 1099 contractor does make things more complex though. You need to be aware that: 1. You'll report quarterly estimated taxes since taxes aren't withheld 2. You can deduct legitimate business expenses to lower your net earnings 3. You must report your earnings to SSA if you expect to exceed the annual limit Keep good records of all business expenses - this includes mileage, home office, supplies, etc. These deductions can help keep your net earnings under the limit.

Everyone's focusing on the earnings limit, which is absolutely correct, but I want to make sure you're aware of something else: as a 1099 contractor making $1,850/month, you'll be very close to the annual limit. What happens if your client wants extra work one month? Or gives you a small raise? You could end up over the limit easily. For every $2 you earn over the annual limit, SSA will deduct $1 from your benefits. And they don't just reduce your monthly payment - they might stop payments entirely for some months until the reduction is satisfied. I'd suggest calling SSA directly to discuss your specific situation, but good luck getting through to them! I spent WEEKS trying to get someone on the phone before I found Claimyr (claimyr.com). They got me connected to an SSA agent in under 10 minutes. Check out their demo video: https://youtu.be/Z-BRbJw3puU - it really works and saved me so much frustration when I needed to discuss my own work situation with SSA.

The whole system is RIDICULOUS!!! Why should we be penalized for working?? I worked for 40 years paying into this system and now they tell me I can't work without getting my benefits cut?? The government just wants to control everything we do!!! And don't even get me started on how they calculate benefits for people who worked government jobs with pensions (WEP/GPO)...

I've been a 1099 contractor for 3 years while collecting Social Security. The 45-hour thing is definitely not true for retirement benefits. I work 60+ hours some months with no issues. However, I track EVERYTHING. Every expense, every mile driven, every home office supply. This significantly reduces my net earnings for SS purposes. I also set aside 25-30% of everything I make for quarterly estimated taxes (self-employment tax is brutal). My personal strategy: I aim to keep my net earnings about $1,000 below the annual limit as a safety buffer. If I get close to the limit by October, I take a "vacation" for the rest of the year. Better safe than sorry.

wait i just rememberd somethin important - if this is ur first year on SS and workin they have a different rule for the first year. something about monthly limits instead of yearly? anyone know about this?

Thanks everyone for the great information! So to summarize what I've learned: 1. There is NO 45-hour work limit for retirement benefits (that might be for disability) 2. The annual earnings limit for 2025 is about $22,320, just above what I expect to earn 3. As a 1099 contractor, it's NET earnings that matter (after business deductions) 4. I should track all possible business expenses carefully to reduce my countable income 5. Since this is my first year collecting, there's a special monthly earnings test 6. I'll need to set aside money for self-employment taxes I'm feeling much better about taking this job now, though I'll be careful to stay under the limits. I might still contact Social Security directly to confirm all this for my specific situation using that Claimyr service someone mentioned. Thanks again!

My sister was told theres a 960 hour limit for the year which is like 80 hours a month. So confusing why everyone gets different information!!!

As someone who's been navigating this exact situation, I can confirm what others have said - there's definitely NO hourly limit for Social Security retirement benefits! I think the confusion comes from the fact that different programs (like SSDI) have different rules, and people mix them up. One thing I'd add that hasn't been mentioned much: since you're doing 1099 work, make sure you understand the difference between "gross earnings" and "net earnings from self-employment" for Social Security purposes. The SSA uses your net earnings (after legitimate business deductions) when calculating whether you've exceeded the annual limit. Also, keep in mind that as a contractor, you might have irregular income months. Some months you might earn $1,200, others $2,400. What matters is your total for the year (or monthly test in your first year as others mentioned). Just make sure you're tracking everything carefully and consider setting up a separate business account to keep your contractor income and expenses organized. Good luck with the new position! It sounds like a great opportunity and you should be fine as long as you stay mindful of the earnings limits.

I've been helping seniors navigate Social Security benefits for years, and I want to emphasize something that's gotten lost in all the confusion here: the "45-hour limit" you heard about is completely false for retirement benefits. That might be someone confusing Social Security with state unemployment benefits or disability programs. Here's what you need to know as a 1099 contractor: 1. **Only earnings matter, not hours** - You could work 100 hours one month and 20 the next, SSA doesn't care about the time, only the money. 2. **Track your NET earnings carefully** - As self-employed, you can deduct legitimate business expenses (home office, supplies, mileage, etc.) which reduces your countable income for SS purposes. 3. **First-year monthly test is key** - Since you just started collecting, you get the monthly earnings test ($1,860/month for 2025) rather than just the annual limit. This actually works in your favor! 4. **Set aside 25-30% for taxes** - Don't forget you'll owe self-employment tax (15.3%) plus income tax on your contractor earnings. The $1,850/month you mentioned should keep you just under the monthly limit, but track everything meticulously. One unexpected bonus payment could push you over. Consider getting a business expense tracking app and keep all receipts - every dollar in deductions is a dollar that doesn't count toward your earnings limit.

As a newcomer to this community, I want to thank everyone for this incredibly informative discussion! I'm actually in a very similar situation - turning 62 soon and considering early retirement with some part-time work, so this thread has been a goldmine of information. What really stands out to me is how much misinformation is floating around about Social Security work rules. The fact that multiple people have heard different "hour limits" really shows why it's so important to get accurate information directly from SSA or trusted sources. One question I have after reading through all of this: for those of you who are successfully managing 1099 work while on Social Security, how do you handle the quarterly estimated tax payments? I'm worried about budgeting for both the self-employment tax and potential overpayments to SSA if I accidentally exceed the earnings limit. Do you work with a tax professional, or is this something most people can manage on their own with good record-keeping? Also, Kennedy, I hope your contract position works out well! It sounds like you've gotten some excellent advice here about staying organized and tracking everything carefully.

As a newcomer to this community, I'm really grateful for all the detailed information everyone has shared! I'm 61 and planning to start collecting Social Security next year, so this discussion has been incredibly valuable. Reading through all the responses, it's clear that the "45-hour limit" is definitely a myth for retirement benefits. What strikes me most is how much confusion exists around these rules - it really highlights the importance of getting accurate information directly from SSA. I'm particularly interested in the business expense deduction aspect that several people mentioned. For those of you successfully doing 1099 work while on Social Security, what percentage of your gross contractor income do you typically end up deducting through legitimate business expenses? I'm trying to get a realistic sense of how much the deductions might help stay under the earnings limit. Also, Kennedy, I'd love to hear how things work out with your contract position once you get started. Your situation is very similar to what I'm hoping to do, and it would be great to learn from your real-world experience navigating the monthly earnings test in that first year. Thanks again to everyone who took the time to share their knowledge and experiences. This community is such a valuable resource!

As a newcomer to this community, I want to add my perspective as someone who's been through a very similar situation. I started collecting Social Security at 62 last year and have been doing 1099 contract work for about 8 months now. The "45-hour limit" is absolutely false for retirement benefits - I can confirm this from personal experience. I've worked anywhere from 25 to 70 hours in a month with zero issues from SSA. What matters is your earnings, period. A few practical tips from my experience: **Track everything religiously** - I use a simple spreadsheet to log every payment received and every business expense. This has been crucial for staying under the earnings limits and for tax preparation. **Understand the first-year monthly test** - This was a lifesaver for me. Instead of worrying about the annual limit, I just had to make sure I didn't exceed $1,860 in any given month during my first calendar year on benefits. **Business deductions are your friend** - I deduct home office expenses, internet, phone, mileage, office supplies, and equipment. Last year, these deductions reduced my net earnings by about 20% of my gross contractor income. **Set up separate accounts** - I have one checking account just for contractor payments and expenses. Makes tracking so much easier and keeps everything organized for taxes. Kennedy, your $1,850 monthly income should work perfectly with the first-year monthly test. Just be careful about any bonus payments or extra work that might push you over $1,860 in a single month. Good luck with the new position!

As a newcomer to this community, I want to thank everyone for this incredibly thorough and helpful discussion! I'm 63 and just started collecting Social Security last month, so this conversation is perfectly timed for me. What really stands out is how much misinformation exists about work restrictions with Social Security. I've heard variations of that "45-hour limit" myth from multiple sources, so it's reassuring to see it definitively debunked by people with actual experience. I'm particularly grateful for the practical advice about business expense tracking and the separate bank account suggestion. As someone who's never been self-employed before, these operational tips are just as valuable as understanding the earnings limits themselves. One thing I'd love to hear more about: for those of you doing 1099 work while on Social Security, how do you handle client relationships when it comes to payment timing? I'm wondering if it's better to negotiate monthly payments to help with the first-year monthly earnings test, or if lump sum payments at project completion are manageable as long as you track everything properly. Kennedy, I hope your contract position works out wonderfully! Your situation has generated such valuable discussion that will help many of us navigate similar decisions.

As a newcomer to this community, I wanted to share my recent experience since it directly relates to Kennedy's situation and might help others facing similar decisions. I'm 62 and started collecting Social Security three months ago. Like Kennedy, I was terrified about the work restrictions after hearing conflicting information - including that same "45-hour limit" myth! After reading through this excellent discussion, I decided to take on a part-time consulting contract. Here's what I've learned so far: **The monthly earnings test for first-year beneficiaries is real and helpful** - I can earn up to $1,860 per month without any benefit reduction, which gives me much more predictable planning than worrying about annual totals. **Business expense tracking is crucial but manageable** - I'm using a simple app to photograph receipts and log mileage immediately. So far, legitimate deductions are running about 18% of my gross earnings (home office, internet, supplies, professional development). **Client payment timing conversations are worth having** - I explained to my main client that I needed predictable monthly payments for "budgeting reasons" (didn't mention Social Security specifically). They were completely understanding and set up automatic monthly payments. Much easier than trying to manage irregular lump sums. **The separate business account suggestion from earlier comments is gold** - Makes everything so much cleaner for both SSA reporting and tax preparation. Kennedy, if you're still reading - take that contract! With proper tracking and the monthly earnings test working in your favor, $1,850/month should be very manageable. The key is staying organized from day one. Thanks to everyone who shared their experiences here. This community knowledge is invaluable for those of us navigating these waters for the first time!

As a newcomer to this community, I want to echo what others have said about how valuable this discussion has been! I'm 61 and planning to file for Social Security next year while potentially doing some consulting work, so Kennedy's question and everyone's responses have been incredibly illuminating. What really strikes me is how widespread the misinformation is about work restrictions. I've heard variations of hour limits from multiple sources - not just the "45-hour" myth but also mentions of 960 hours annually and other numbers. It's clear that people are mixing up rules from different programs (SSDI, state unemployment, etc.) with Social Security retirement benefits. The practical advice shared here has been outstanding. The separate business account suggestion, tracking business expenses meticulously, understanding the first-year monthly earnings test - these are the kinds of real-world tips that make the difference between success and problems with SSA later. I'm particularly grateful to those like Isaac, Ella, and others who've shared their actual experiences navigating 1099 work while on Social Security. Hearing that it's not only possible but manageable with proper organization gives me confidence to move forward with my own plans. Kennedy, I hope you'll keep us updated on how your contract position works out! Your question has generated such a wealth of useful information for anyone facing similar decisions.

As a newcomer to this community, I want to add my voice to thank everyone for this incredibly comprehensive and helpful discussion! I'm 62 and recently started collecting Social Security, so Kennedy's original question really resonated with me. What's been most eye-opening is learning how much misinformation exists about work restrictions. I had also heard about hourly limits from well-meaning friends and family, so seeing it definitively debunked by people with real experience is such a relief. The practical strategies shared here are invaluable - especially the emphasis on tracking NET earnings through business deductions, understanding the first-year monthly earnings test, and keeping meticulous records. Isaac's point about negotiating predictable monthly payments with clients is particularly smart for managing that $1,860 monthly limit. One thing I'd add from my own research: I've found that many local AARP chapters offer free tax preparation help during tax season, and some of their volunteers are quite knowledgeable about the intersection of Social Security benefits and self-employment income. It might be worth checking if there are similar resources in your area for additional guidance. Kennedy, I really hope you take that contract position! Based on everything shared here, it sounds like you have all the information you need to make it work successfully. Please keep us updated on how it goes - your experience will surely help others facing similar decisions in the future.

As a newcomer to this community, I'm incredibly grateful for this thorough and informative discussion! I'm 60 and planning to start Social Security in the next year or two, so Kennedy's question about 1099 contractor work has been extremely relevant to my situation. What really stands out to me is how much confusion exists around these work restrictions. I've also heard various "hour limit" myths from different sources, so it's tremendously reassuring to see experienced community members definitively clarify that for retirement benefits, it's strictly about earnings, not hours worked. The practical advice shared here has been outstanding - from the importance of tracking net earnings through business deductions to understanding the first-year monthly earnings test. The tip about maintaining separate business accounts and negotiating predictable monthly payments with clients are the kinds of real-world strategies that make all the difference. I'm particularly encouraged by the success stories from Isaac, Ella, and others who are actively managing 1099 work while receiving Social Security benefits. Knowing that business deductions can reduce net earnings by 15-20% or more provides much better planning clarity than I had before. Kennedy, I really hope you move forward with that contract position! Based on all the expert advice shared here, it sounds very manageable at $1,850/month, especially with the first-year monthly test working in your favor. Please keep us posted on how it works out - your experience will be invaluable for others considering similar paths!

As a newcomer to this community, I want to add my perspective as someone currently navigating this exact situation! I'm 62, started collecting Social Security benefits two months ago, and just accepted my first 1099 contractor position. Like many others here, I was initially confused by conflicting information about work restrictions. The "45-hour limit" myth is incredibly persistent - I heard it from three different people before finding this discussion! It's such a relief to see it definitively debunked by community members with real experience. What's been most helpful from this thread is understanding the practical implementation strategies. I've already set up a separate business checking account (thanks to those who recommended this!), started tracking every business expense with a simple app, and negotiated monthly payments with my client to help manage the first-year monthly earnings test. One additional tip I'd share: I found it helpful to create a simple monthly tracking spreadsheet that shows my year-to-date gross earnings, business deductions, net earnings, and remaining "budget" under the $1,860 monthly limit. This visual tracking helps me stay confident that I'm on the right path each month. Kennedy, if you're still following this discussion - definitely take that contract position! At $1,850/month with the first-year monthly test in your favor, you should be in great shape. Just stay organized with your record-keeping from day one, and don't forget to set aside that 25-30% for taxes that others mentioned. Thanks to everyone who shared their experiences and expertise here. This community knowledge is truly invaluable for those of us learning to balance Social Security benefits with continued work!