How do I report monthly earnings to Social Security when working under FRA - self-reporting vs IRS?

Yes, the monthly earnings test only applies in the first year you claim benefits. For 2025, the monthly limit is $1,860 (which equals the annual limit of $22,320 divided by 12). In subsequent years, only the annual limit matters. For reporting: SSA doesn't automatically know your monthly earnings. You should contact SSA at the beginning of the year with an estimate of your expected earnings. Then, you need to report if your earnings will be over or under what you originally estimated. SSA recommends reporting any changes as soon as possible to avoid overpayments that you'll have to pay back later. You can report changes by calling SSA, visiting your local office, or through your my Social Security account online (though the online reporting has limitations).

I started collecting at 62 last yr and still wrk. SSA never told me anything about monthly reporting!! Only found out bout yearly limits when my tax guy said watch out for making too much $$ or they take back benefits. Nobody ever xplains this stuff clearly

When I started SS at 63 while still working part-time, I called the SSA office to estimate my earnings for the year. I didn't have to report monthly - they just asked me to call if my situation changed significantly from my estimate. They took my word for it and adjusted my benefits based on my estimate. At the end of the year, SSA compares what you actually earned (from IRS data) with what you estimated and makes adjustments. If you earned more than estimated, you might get an overpayment notice. If you earned less, they might owe you money. I found it helps to keep track of your monthly earnings in a spreadsheet, especially if your income varies month to month. That way you can see if your annual total is still on track with your estimate.

I just called SSA about this exact issue last week and sat on hold for 2 HOURS before getting disconnected!!! So frustrating trying to get answers about something that should be simple. The monthly vs annual limits are so confusing. I wish they'd just make it all simple.

The monthly earnings test is only used during what's called your "grace year" - which is the first year you receive benefits. After that, SSA only looks at your annual earnings. Important note: SSA calculates benefits based on what you earn, not what you make each month. So if you earn $5,000 in January but don't actually receive the payment until February, it counts for January (when the work was performed). Also, only wages and self-employment income count toward the earnings limit. Investment income, government benefits, pensions, annuities, and interest don't count against you. For reporting, you generally provide an estimate at the beginning of the year, then report changes as needed. They'll adjust your benefits based on your estimated earnings.

My experience with the monthly earnings test was a NIGHTMARE!!! I estimated my earnings as instructed but SSA still ended up saying I was overpaid by $4,700 even though I followed their instructions EXACTLY. Took me 8 months of back and forth to resolve. The system is broken!!! Be VERY careful and document EVERYTHING. Keep pay stubs, write down who you talk to, when you reported changes, etc. You'll thank me later when they inevitably mess something up.

To answer your follow-up question: You don't need to report every month - just provide an estimate at the beginning of the year, and then report if your annual earnings will differ significantly from that estimate. If you report that you expect to earn over the limit, SSA will typically withhold some or all of your benefits in advance, based on your estimate. It's better to be accurate with your estimate because: 1. If they withhold too much (you earn less than estimated), they'll pay you the difference later 2. If they withhold too little (you earn more than estimated), you'll have to pay back the excess For seasonal work, make sure to consider your full annual earnings when making your estimate, even if some months are much higher than others. After your first year on benefits, only the annual total matters, not which specific months you earned the money.

To answer your question about withholding - in my case, once I gave them my estimate (which was over the annual limit), they withheld benefits for several months up front. Then they released partial payments later in the year once enough had been withheld to cover my estimated excess earnings. It worked out pretty accurately in my case, but I was careful with my estimate.

does anyone know if they count PTO payouts against the earnings limit? I'm retiring in June but will get paid for unused vacation time which might put me over the limit those months

Since you mentioned seasonal work with fluctuating income, here's a practical approach I've recommended to clients in your situation: 1. Create a simple spreadsheet with your expected monthly earnings 2. At the beginning of the year, give SSA your best annual estimate 3. If your income changes significantly (more than 10-15% from your estimate), report the change 4. Keep your own monthly records regardless 5. Plan your finances assuming you might need to return some benefits if you exceed the limit After your first year, the monthly limit no longer applies, and SSA will only look at your annual total when applying the earnings test. Once you reach your full retirement age, there's no earnings limit at all.

Im totally confused about another thing - do they count gross wages or net wages for the limit? My gf says gross but someone at SS told me net. Huge difference!