Confused about Social Security earnings limit - does $1860/month apply before I start collecting in August?

month limit only applies after u start collecting SS. Before that you can make whatever u want. so from Aug-Dec is when they'll count the $1860 limit

The first year rule is a bit more nuanced than most people realize. The $1860/month earnings test only applies to the months AFTER you become entitled to benefits. So in your case, SSA will only look at your earnings from August-December. Any earnings before you start collecting will not impact your benefits. However, be aware that if you earn over $1860 in any month from August-December, you might lose benefits for that specific month. For example, if you earn $2500 in September after starting benefits in August, you could lose your September benefit payment. The good news is that your earnings January-July won't factor into this calculation at all.

CAREFUL!!!! I thought the same thing when I retired and got BURNED. The monthly limit ONLY applies in your first year of retirement, but SSA counts ALL your earnings for the year toward the ANNUAL limit too! So even though your pre-retirement earnings don't count for the monthly test, they still count for the yearly total. I ended up owing SSA money back because nobody told me this!!

I just went through this exact situation last year! The previous comments about the monthly earnings test are correct - only your earnings AFTER you start receiving benefits count. But here's something important no one mentioned: make sure you have a clean break from your employer before you start benefits. I had some unused vacation pay that got paid out in my first month of retirement, and SSA counted that toward my earnings that month, which pushed me over the limit! BTW, when you try calling SSA to ask about this stuff, it's almost impossible to get through. I spent days trying. I finally used a service called Claimyr (claimyr.com) that got me connected to an agent in under 5 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU - it saved me so much frustration when I needed to straighten out my earnings limit issues.

I'm wondering if anyone knows - does the $1860 limit count gross pay or net pay after deductions? And also what happens if you accidentally go over one month? Do they just withhold that month's SS payment or is there a penalty too?

To clarify the rules with complete accuracy: 1. The $1860/month limit ONLY applies to months AFTER you become entitled to benefits (August-December in your case) 2. In your first year of receiving benefits, SSA ONLY uses the monthly earnings test, NOT the annual test 3. Earnings from January-July will NOT affect your benefits at all 4. The monthly earnings test counts gross wages for services performed that month 5. Special payments like vacation payouts, bonuses, or commissions for work done BEFORE retirement don't count toward the earnings test if properly reported You'll need to file Form SSA-131 (Employer Report of Special Wage Payments) to exclude vacation pay from the earnings test. Contact your employer about completing this form. In years after your first year of retirement, SSA will switch to the annual earnings test.

My cousin retired last year and she told me that the first $22,320 you make in a year doesn't count at all against Social Security regardless of when you earn it. But then her neighbor told her that was wrong and now she's all confused too. The Social Security rules are so complicated!!! Why can't they just make it simple?