Does Social Security annual earnings limit count SS benefits as income?
I'm turning 63 in May and planning to claim my SS benefits early, but I'm confused about the annual earnings limit. Does the $22,320 annual earnings limit (for 2025) INCLUDE my Social Security benefits as part of my 'earnings' or is the limit just counting my work income? I'm planning to work part-time at my brother's business making about $1,500/month, and I expect my SS benefit to be around $1,700/month. Will my benefits count against the earnings limit or can I earn up to $22,320 from my job ON TOP OF receiving my benefits? Sorry if this is a dumb question, but I can't seem to get a straight answer from the SSA website.
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Mateo Rodriguez
The annual earnings limit only applies to your WORK income, not your Social Security benefits. Your SS benefits don't count as earnings for the earnings test. So in your case, you can earn up to $22,320 from your part-time job in 2025 before any reduction in benefits. At $1,500/month, you'd be earning $18,000 for the year, which is under the limit, so your benefits wouldn't be affected. Once you reach full retirement age (probably 67 for you), the earnings limit goes away completely.
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Nia Thompson
•Oh that's such a relief! So my $1,700 monthly benefit isn't counted at all toward the $22,320 limit? That makes so much more sense. Thank you for clearing that up!
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Aisha Abdullah
watch out tho, even tho ur SS benifits dont count toward earnings limit, they might still be TAXABLE depending on ur combined income. if u make too much, up to 85% of ur SS can be taxed. different calculation than the earnings test!!
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Nia Thompson
•Oh no, really? So my benefits aren't counted for the earnings limit but they might still get taxed? How does that work? Is there another threshold I need to worry about?
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Ethan Wilson
The previous responses are correct. To clarify further: 1. EARNINGS LIMIT: Only counts wages or self-employment income. Your Social Security benefits are NOT counted toward this limit. At $1,500/month from your part-time job, you're under the $22,320 annual limit for 2025. 2. TAXATION OF BENEFITS: Separate issue. If your combined income (adjusted gross income + nontaxable interest + 1/2 of Social Security benefits) exceeds certain thresholds, some of your benefits may be taxable. For individuals, taxation begins when combined income exceeds $25,000. For your situation with $18,000 work income and $20,400 in annual SS benefits, you should calculate if your benefits will be partially taxable. This doesn't reduce your benefit amount - it just means you might owe income tax on a portion of those benefits.
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Nia Thompson
•Thank you so much for breaking this down! I wasn't even thinking about the tax part. So even though I'm under the earnings limit and won't have benefits reduced, I might still owe taxes on my benefits if my combined income is over $25,000. I'll need to factor that into my budget.
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NeonNova
I had the EXACT same confusion last year!! The SSA website is so unclear about this. I was worried my SS checks counted against the limit too. Called SSA and waited on hold for 3 HOURS before someone finally explained it's only work income that counts. Such a waste of time just to get a simple answer!
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Yuki Tanaka
•If you're having trouble reaching Social Security by phone, I'd recommend trying Claimyr. I was in a similar situation trying to get clarification about earnings limits and kept getting disconnected. Used their service and got through to a real SSA agent in about 15 minutes instead of waiting for hours. There's a video showing how it works at https://youtu.be/Z-BRbJw3puU - really helped me get answers quickly. Their website is claimyr.com if you want to check it out.
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Carmen Diaz
@OP, there's one more important detail you need to know. In the year you first claim benefits (2025 for you), SSA uses a monthly earnings test rather than the annual limit until the following calendar year. For 2025, this monthly limit would be $1,860 ($22,320 ÷ 12). This means in your specific situation, if you earn $1,500/month from your part-time job, you'd be under both the monthly and annual limits, so no benefit reduction would apply. This monthly test only applies for that first partial year of benefits. Also, be aware that if you do exceed the earnings limit, SSA withholds $1 in benefits for every $2 you earn above the limit. And contrary to what many believe, you don't permanently lose these benefits - they're added back into your monthly payment when you reach full retirement age.
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Nia Thompson
•I had no idea about the monthly test for the first year! That's really good to know. So since I'm claiming in May and working part-time making $1,500/month, I should be fine since that's under the $1,860 monthly limit. And it's reassuring to hear that even if someone does exceed the limit, the benefits aren't permanently lost. The SSA really should make these details clearer on their website!
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Aisha Abdullah
My uncle claimed at 62 and went over the limit by accident - he got a HUGE bill from SS the next year demanding repayment!!! Be super careful with this stuff!!!
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Mateo Rodriguez
•That's actually a common situation. If you exceed the earnings limit, SSA will notify you of an overpayment and request repayment. However, they usually offer payment plans and sometimes waivers if it would cause financial hardship. It's always best to report any expected income changes to SSA in advance so they can adjust your benefits proactively rather than creating an overpayment situation.
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Andre Laurent
What about passive income like stock dividends, IRA withdrawals or rental income? Do those count toward the earnings limit? I'm in a similar situation to the OP but I have some investments too.
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Ethan Wilson
•Great question. The earnings test ONLY counts earned income - wages from a job or net earnings from self-employment. Passive income like dividends, interest, capital gains, pension payments, annuities, IRA distributions, and rental income DO NOT count toward the earnings limit. However, these types of income can affect the taxation of your benefits under the separate income tax rules I mentioned earlier.
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Nia Thompson
Thank you all for the helpful information! I'm feeling much better now that I understand how the earnings limit works. Just to make sure I've got everything straight: 1. My SS benefits ($1,700/month) don't count toward the earnings limit 2. Only my work income ($1,500/month = $18,000/year) counts, which is under the $22,320 limit 3. There's a special monthly limit ($1,860) in my first year of claiming 4. I still need to watch out for taxes on my benefits if my combined income is over $25,000 5. Passive income doesn't count toward the earnings limit but does affect taxation This forum has been so much more helpful than the SSA website! I really appreciate everyone taking the time to explain this.
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Carmen Diaz
•You've got it exactly right! And one final tip: if your work situation changes and you think you might exceed the earnings limit, contact SSA right away to adjust your benefits. It's much easier to handle proactively than dealing with an overpayment notice later.
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