Do work reimbursements count toward Social Security earnings limit when collecting retirement benefits?

Good question! Expense reimbursements that are properly documented and legitimately work-related (like your hotel stays and mileage) generally do NOT count toward your Social Security earnings limit. These are considered business expense reimbursements, not earnings. What matters is how these appear on your W-2. If they're properly classified as reimbursements, they shouldn't be included in Box 1 (wages, tips, other compensation) which is what SSA looks at to determine your earnings. If your employer is handling these correctly, they should be listed as non-taxable benefits. To be safe, I'd recommend checking your most recent pay stub to see how these reimbursements are being classified. If they're not being added to your taxable wages, you should be fine!

My brother got CAUGHT on this exact thing last year!!!! He thought his reimbursements were fine but SSA counted them and he had to pay back $2900 in benefits. So watch out!!!

Im in exact same situation! working part time at 63 and get milage for driving between clients. What about per diem? I get $35 a day when Im traveling over 50miles but dont have to show receipts. does that count toward limit?

I spent 3 HOURS on hold with SSA trying to get a straight answer about this same question last month!! Finally gave up. Their phone system is horrible, kept disconnecting me.

The real question you need to ask yourself is: how will SSA know about these reimbursements? If they don't show up on your W-2 as income (Box 1), they won't be reported to Social Security. SSA doesn't have some magic way of seeing your reimbursements if they're not reported as taxable income.

Let me clarify something important here. The Social Security earnings test specifically looks at your "gross wages" for employment income, which means the amount reported in Box 1 of your W-2. Reimbursements for actual business expenses under an "accountable plan" (which means you provide documentation to your employer) are not included in Box 1, and therefore don't count toward the earnings limit. However, if you receive allowances that exceed documented expenses or fixed per diems above federal rates, those excess amounts may appear in Box 1 and would count toward your limit. For the most accurate determination, you can request a Benefits Planning Query (BPQY) from Social Security, which will show exactly what earnings they're counting toward your limit.

A BPQY (Benefits Planning Query) is a document from Social Security that shows your benefits, earnings history, and other information they have on file. You can request one by calling SSA or visiting your local office. It's very helpful for seeing exactly what earnings SSA is counting.

Ok so wait im confused... if i get a company car does that count for the earnings test too??

Just my experience but when I was in this situation a few years back, I called my local SS office (not the main number) and they actually answered! The agent told me reimbursements don't count but if I was worried I should just keep my W2 earnings about $1000 under the limit to have a buffer. Worked for me!

Just wanted to add something that might help - I work in payroll and see this confusion a lot. The key distinction is whether your employer has what's called an "accountable plan" for reimbursements. Under an accountable plan, you provide receipts or documentation for your expenses, and those reimbursements are excluded from your taxable wages (Box 1 of W-2). If your employer just gives you a flat amount without requiring documentation, that's considered a "non-accountable plan" and those payments DO count as taxable income. Since you mentioned your reimbursements vary based on actual travel ($300-$700), it sounds like they're tied to real expenses, which is good. But definitely verify with your payroll department that they're using an accountable plan and check that December pay stub to make sure those reimbursements aren't being added to your regular wages. Better to double-check now than get surprised later!

I'm dealing with a similar situation and this thread has been incredibly helpful! I'm 65 and working part-time while receiving Social Security. My employer reimburses me for business meals when I'm meeting with clients, usually around $200-400 per month. After reading through all these responses, I checked my pay stub and these meal reimbursements are listed separately from my regular wages under "expense reimbursements." They're not included in my gross pay, which makes me feel more confident they won't count toward my earnings limit. One thing I learned from my HR department is that they do have an accountable plan - I have to submit receipts within 60 days and return any excess advances. This seems to align with what AstroAlpha mentioned about accountable vs non-accountable plans. For anyone else in this situation, I'd definitely recommend: 1) Check how reimbursements appear on your pay stub, 2) Confirm your employer has an accountable plan, and 3) Keep good records of all your expense documentation. The peace of mind is worth the extra effort!

Welcome to the community! I just wanted to share my experience as someone who went through this exact worry when I first started collecting benefits at 62 while still working. The confusion about reimbursements is so common - I think SSA could do a much better job explaining this on their website. What really helped me was creating a simple spreadsheet to track my regular wages vs. reimbursements each month. I keep copies of all my pay stubs and highlight where the reimbursements appear (separate from gross wages) so I have clear documentation. One tip that my tax preparer shared: if you're ever unsure about whether something should count toward your earnings limit, you can always call SSA in January after you get your W-2 and ask them to walk through it with you before filing. It's much easier to clarify things proactively than to deal with an overpayment situation later. Based on what you've described about submitting actual receipts and the reimbursements being listed separately on your pay stub, it sounds like you're in good shape. But definitely keep those records organized - you never know when you might need to provide documentation to SSA if they have questions about your earnings.

I'm new to this community and this discussion has been incredibly helpful! I'm 63 and just started receiving Social Security benefits while working part-time as a consultant. Like many of you, I was really confused about how reimbursements factor into the earnings limit. My situation is a bit different - I get reimbursed for home office expenses (internet, phone, supplies) totaling about $150-200 monthly, plus occasional travel reimbursements when I visit client sites. After reading through all these responses, I checked my 1099 and these reimbursements aren't included in the income reported to the IRS, which gives me some peace of mind. One thing I'm still unclear on though - as a contractor rather than an employee, do the same rules apply? I don't get a W-2, just 1099s from my clients. Does anyone have experience with how SSA handles reimbursements for independent contractors? I'm wondering if I need to be extra careful about documentation since the accountable plan rules seem to be more of an employer thing. Thanks to everyone who has shared their experiences here - this is exactly the kind of practical information that you just can't find on the SSA website!

Welcome to the community! As someone who's been navigating Social Security benefits while working for a few years now, I can definitely relate to the confusion around reimbursements and the earnings limit. From my experience and what I've learned from others here, the key thing is documentation and proper classification. It sounds like you're already on the right track by checking how these appear on your pay stubs and ensuring they're listed separately from your taxable wages. One thing that really helped me was creating a monthly tracking system where I record my actual wages versus any reimbursements I receive. This way I can easily monitor where I stand relative to the annual earnings limit ($22,320 for 2025) and avoid any surprises. Since you mentioned your reimbursements are based on actual expenses with receipts, and they're showing up separately on your pay stub as "non-taxable reimbursements," you should be in good shape. Just make sure to keep all your documentation organized - hotel receipts, mileage logs, meal receipts, etc. If SSA ever has questions, you'll want to be able to show these were legitimate business expenses. The peace of mind that comes from understanding these rules is so worth the effort of getting organized upfront. This community has been invaluable for learning from others who've faced similar situations!

As a newcomer to this community, I'm really grateful for all the detailed information shared in this thread! I'm 62 and just started collecting Social Security while working part-time, and I was having the exact same concerns about reimbursements counting toward the earnings limit. Reading through everyone's experiences has been incredibly reassuring. The key takeaways I'm getting are: 1) Check how reimbursements appear on your pay stub (should be separate from gross wages), 2) Ensure your employer has an accountable plan for expense reimbursements, and 3) Keep detailed documentation of all business expenses. What I found particularly helpful was learning about the difference between accountable and non-accountable plans - I had no idea this distinction existed! I'm going to contact my HR department tomorrow to confirm which type of plan we have and verify that my travel reimbursements are being handled correctly. The monthly tracking spreadsheet idea that several people mentioned is brilliant too. I'm definitely going to set that up to monitor my progress toward the annual limit throughout the year. Thank you to everyone who has shared their knowledge and experiences - this community is such a valuable resource for navigating these confusing Social Security rules!

Welcome to the community! As someone who just started collecting Social Security at 64 while still working part-time, I was dealing with this exact same worry about reimbursements just a few months ago. The anxiety about potentially exceeding the earnings limit is so real - I was checking and rechecking my pay stubs constantly! After reading through this incredibly helpful thread and doing my own research, I can share what I learned: the key is really in how your employer classifies and reports these reimbursements. Since you mentioned yours vary based on actual travel expenses ($300-$700) and you're getting reimbursed for specific items like hotels and mileage, it sounds like they're tied to legitimate business expenses rather than just additional compensation. The best advice I can give is to do exactly what several people here suggested - check your most recent pay stub to see if the reimbursements are listed separately from your regular wages, and confirm with your payroll department that they're using an accountable plan. When I did this, I discovered my reimbursements were being handled correctly and weren't included in my taxable wages. I also started using the monthly tracking spreadsheet approach that others mentioned - it's been a game-changer for peace of mind! Knowing exactly where I stand each month relative to the annual limit has eliminated so much stress. This community has been invaluable for getting practical, real-world guidance that you just can't find on the SSA website. Everyone here has been so generous with sharing their experiences and knowledge!

Welcome to the community! I'm also new here and was dealing with this exact same concern when I started receiving benefits at 63 while working part-time. The fear of accidentally going over the earnings limit is so stressful! After reading through all these incredibly helpful responses, I feel much more confident about how reimbursements work. The key seems to be that legitimate business expense reimbursements under an accountable plan don't count toward your earnings limit as long as they're not included in Box 1 of your W-2. I just wanted to add one thing that helped me - I created a simple checklist based on everyone's advice here: 1. Verify reimbursements appear separately from wages on pay stubs 2. Confirm employer uses an accountable plan (requires receipts/documentation) 3. Check that reimbursements aren't in Box 1 of W-2 4. Keep detailed records of all expense documentation 5. Track monthly earnings vs. the annual limit ($22,320 for 2025) Since your reimbursements are based on actual documented expenses and vary with your travel schedule, it sounds like you're in good shape. But definitely verify with payroll to be 100% sure! This community has been such a lifesaver for understanding these confusing rules. Thank you to everyone who has shared their knowledge and experiences!

Welcome to the community! As a newcomer here, I've been following this thread with great interest since I'm facing a very similar situation. I'm 65 and just started collecting Social Security while working part-time as a sales representative, and I also receive reimbursements for business expenses. Reading through everyone's experiences has been incredibly educational! I particularly appreciated learning about the difference between accountable and non-accountable plans - that was completely new information for me. It's clear that proper documentation and classification are absolutely critical. My situation involves getting reimbursed for client entertainment expenses and some travel costs, usually around $400-500 monthly. After seeing all the great advice here, I checked my recent pay stubs and was relieved to see these reimbursements listed separately under "business expense reimbursements" rather than being added to my gross wages. The monthly tracking spreadsheet idea that several people mentioned is brilliant - I'm definitely going to set that up this weekend. Having that ongoing visibility into my earnings relative to the $22,320 limit will help me sleep much better at night! One question for the group: has anyone had experience with SSA actually reviewing or questioning expense reimbursements? I'm curious about what triggers their attention and how they typically handle these situations if questions do arise. Thank you all for creating such a supportive and informative community. The practical guidance here is invaluable!

Welcome to the community! I'm also new here and found myself in a very similar situation when I started collecting Social Security at 64 while working part-time. The anxiety about accidentally exceeding the earnings limit with reimbursements is so relatable! After reading through this incredibly informative thread, I feel much more confident about how these rules work. The consensus seems clear: legitimate business expense reimbursements that are properly documented and don't appear in Box 1 of your W-2 shouldn't count toward your earnings limit. What really helped me was following the advice several people shared about checking with my payroll department. I confirmed that my employer uses an accountable plan and that my travel reimbursements (similar amounts to yours - $250-600 monthly for hotels, meals, and mileage) are classified correctly as non-taxable expense reimbursements. The monthly tracking spreadsheet idea that's been mentioned throughout this thread is something I'm definitely implementing. Knowing exactly where I stand each month relative to that $22,320 limit will eliminate so much stress! One thing I'd add is that keeping a simple folder with all your expense receipts and documentation organized by month has been really helpful for me. If SSA ever has questions, having everything readily available gives great peace of mind. Thank you to everyone who has shared their experiences and knowledge here. This community is such a valuable resource for navigating these confusing Social Security rules!