Does working after Full Retirement Age affect my Social Security benefits or create tax issues?
I just turned 65 last month and I've been collecting Social Security since 62. I'm thinking about going back to work part-time at my cousin's landscaping business, but I'm confused about what happens when I hit my Full Retirement Age in a couple years. Someone at church told me that once I reach FRA, I can earn as much as I want without it affecting my SS benefits. Is that true? And is that income somehow tax-free? I've been staying under the earnings limit ($22,320 I think?) because I don't want them reducing my checks, but would love to work more if possible. Do things really change once I hit my FRA? Thanks for any help!
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NeonNova
Yes, once you reach your Full Retirement Age (which would be 67 if you were born in 1960 or later), the earnings test no longer applies. This means you can earn unlimited income from working without having your Social Security benefits reduced. However, this doesn't mean your income becomes tax-free. Your earnings will still be subject to income tax, and depending on your combined income (adjusted gross income + nontaxable interest + half of your Social Security benefits), your Social Security benefits themselves may be taxable as well. At most, 85% of your Social Security benefits can be subject to federal income tax. Whether they are taxed depends on your total income and filing status.
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Ethan Wilson
•Thanks for clarifying! So the benefit reduction goes away at FRA, but I'll still pay regular income tax on what I earn. That makes more sense. Are Social Security taxes (FICA) still taken out of my paychecks even after FRA?
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Yuki Tanaka
You still gotta pay taxes man. Uncle Sam always gets his cut lol. The only thing that changes is SSA won't take money from ur checks anymore once u hit full retirement. I work full time after hitting my retirement age and it all works fine but yeah I still pay taxes on everything.
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Carmen Diaz
•My brother-in-law told me that social security income is never taxed!!!!! Is that not true??? I've been planning my retirement based on that assumtion.
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NeonNova
To answer your follow-up question - yes, FICA taxes (Social Security and Medicare) will still be deducted from your earnings even after you reach your Full Retirement Age. Everyone who works in covered employment must pay these taxes regardless of age or whether they're receiving benefits. Regarding Social Security income being tax-free (as another commenter mentioned): This is incorrect. Social Security benefits may be subject to federal income tax depending on your combined income. If you file as an individual and your combined income is: - Between $25,000 and $34,000: up to 50% of benefits may be taxable - Above $34,000: up to 85% of benefits may be taxable For married couples filing jointly, those thresholds are $32,000 and $44,000 respectively. Some states also tax Social Security benefits, while others don't.
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Carmen Diaz
•Oh no!!! I had no idea! This changes everything for my budget next year. Why doesn't SSA make this clearer?
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Andre Laurent
The good news is that continuing to work after FRA can actually INCREASE your future benefit amount! SSA recalculates your benefit every year, and if your recent earnings are higher than one of your previous 35 highest earning years, your benefit will go up accordingly. Many people don't realize this advantage of working after FRA.
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Ethan Wilson
•That's really helpful to know! I didn't realize they would keep recalculating. I had some low-earning years in my 20s that probably bring my average down, so maybe working now could replace those.
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Emily Jackson
Im totally confused by all this. SSA takes so much of our money our whole lives and then they tax us AGAIN on our benefits??? This is rediculous! When I tried calling them to explain this better the wait was 3 HOURS. Then they hung up on me!!! This whole systems broken if you ask me.
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Liam Mendez
•I had the same frustrating experience trying to call SSA about my benefits calculation. After multiple disconnects and hours of waiting, I found a service called Claimyr (claimyr.com) that got me through to an agent in under 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. Saved me a ton of stress when I needed to ask about my earnings record and how working would affect my benefits.
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Sophia Nguyen
I went through this exact situation last year. The most important distinction is between the earnings test (which disappears at FRA) and taxation (which never goes away). To be super clear: 1. Before FRA: If you earn over the annual limit ($22,320 in 2025), SSA withholds $1 in benefits for every $2 you earn above the limit. 2. After FRA: No reduction in benefits regardless of how much you earn. BUT, your Social Security benefits can still be taxed based on your combined income (including wages, investment income, etc). This has nothing to do with FRA - it's just regular income tax rules. And yes, working longer can increase your benefit if you replace a lower-earning year in your 35-year calculation.
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Yuki Tanaka
•This is exactly right. I've been working for 3 yrs after my FRA and no benefit cuts but still pay taxes on everything. Just part of the deal.
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Carmen Diaz
My son is a tax accountant and he told me that up to 85% of SS benefits can be taxed. But he said if your only income is Social Security, you probably won't owe taxes on it. It's when you have other income like from a job or 401k that it becomes taxable. Does that sound right to everyone?????
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Sophia Nguyen
•Yes, that's correct. If your only income is Social Security, it's unlikely you'll owe federal income taxes on it. This is because the thresholds I mentioned earlier ($25,000 for individuals, $32,000 for married couples) are based on your combined income, which includes other sources. So if your sole income is Social Security and it's below these thresholds, you typically won't owe federal taxes on your benefits. But once you add wages from work, pension payments, or other income sources, that's when taxation of benefits can kick in.
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Ethan Wilson
I really appreciate all the responses! This clears things up a lot. Just to make sure I have this right: 1. After FRA, I can earn as much as I want without SS reducing my benefits 2. I'll still pay regular income tax on my earnings 3. I'll still pay FICA taxes on my earnings 4. My SS benefits might be taxable depending on my total income 5. Working longer might actually increase my SS benefit This makes my decision a lot easier. I think I'll go ahead and take that job with my cousin since I won't have to worry about benefit reductions after I hit my FRA. Thanks everyone!
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Andre Laurent
•That's exactly right! You've got a perfect summary of the situation. And don't forget that by continuing to work, you're potentially replacing lower-earning years in your benefit calculation, which could mean slightly higher monthly checks going forward.
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Emily Jackson
Wait I'm still confused... does FRA mean Full Retirement Age or something else?? And is that different for everybody? Mine says 67 on my statement but my friend who's older says hers is 66 and something months.
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NeonNova
•Yes, FRA means Full Retirement Age. And you're right - it varies based on birth year: - If born 1943-1954: FRA is 66 - If born 1955: FRA is 66 and 2 months - If born 1956: FRA is 66 and 4 months - If born 1957: FRA is 66 and 6 months - If born 1958: FRA is 66 and 8 months - If born 1959: FRA is 66 and 10 months - If born 1960 or later: FRA is 67 So your friend who has an FRA of 66 and some months was likely born between 1955-1959, while you were born in 1960 or later with an FRA of 67.
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Yuki Tanaka
My neighbor said the tax thing depends on what state you live in too. Some states don't tax SS at all. I'm in Illinois and they don't touch my SS.
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Andre Laurent
•That's correct about state taxation. As of 2025, these states do NOT tax Social Security benefits: Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin, Wyoming While these states DO tax Social Security for some residents (often based on income thresholds): Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, West Virginia This is separate from federal taxation, which applies everywhere.
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