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!

Just wanted to add one more important point that I learned the hard way - make sure to understand the difference between the monthly earnings test and the annual earnings test clearly when you call SSA. In your first year of benefits (your "grace year"), SSA uses whichever test is MORE favorable to you. So if you have high earnings in some months but your annual total is under the limit, they'll use the annual test. But if you have a few months where you earn way over the monthly limit ($1,860 for 2025), they'll withhold benefits for those specific months. The key is that you get to keep benefits for any month where you earn under the monthly limit, even if your annual total will be over the yearly limit. This is why the monthly test can actually work in your favor with seasonal work! I'd recommend calling SSA with specific monthly estimates rather than just an annual total, so they can apply whichever method works better for your situation. And definitely keep detailed records - I use a simple notebook to track each month's earnings and any conversations with SSA representatives.

I've been collecting Social Security for about 8 months now while working part-time, and I wanted to share my actual experience with the monthly reporting process since you're just starting out. When I first applied, the SSA representative walked me through creating an annual earnings estimate, but they also had me break it down month by month since my income varies (I work retail with seasonal fluctuations). What I found helpful was being very detailed in that initial conversation - I told them which months I expected to earn over the $1,860 monthly limit and which months would be lower. They used this information to withhold benefits strategically. For example, they withheld my December and January payments (my highest earning months) but continued payments in slower months even though my annual total will be over the limit. This actually worked out better than I expected! One tip: when you call, ask them to walk you through both the monthly and annual calculations for your specific situation. They have worksheets that show exactly how much they'll withhold under each scenario. And definitely get a case number for your call - I reference it every time I need to contact them about earnings changes. The online reporting through my Social Security account is pretty limited, so I've found calling is still the most reliable way to report changes. Just be prepared for long hold times!

I've been working with the SSA earnings limits for several years now, and I wanted to clarify something that often confuses people - the "grace year" monthly earnings test is actually quite straightforward once you understand the key principle. The monthly limit of $1,860 (for 2025) only matters in your first calendar year of receiving benefits. But here's the important part: SSA will withhold benefits for ANY month where you earn over that limit, regardless of your annual total. So even if your yearly earnings are well under $22,320, if you earn $3,000 in one month, they'll withhold that month's benefit. However, as others mentioned, they'll use whichever test (monthly vs annual) is more favorable to you overall. The key is being upfront about your monthly variations when you first apply. For your seasonal work situation, I'd recommend: 1. Map out your expected earnings month by month for the entire year 2. Identify which months you'll likely exceed $1,860 3. Present this detailed breakdown to SSA rather than just giving an annual estimate This way they can plan the withholding strategy from the start rather than having to make adjustments later. And definitely keep meticulous records - month, amount earned, date reported to SSA, and the representative's name if you call. After your first year, this monthly complexity goes away completely and you only need to worry about the annual limit.

I'm also approaching 63 and considering claiming Social Security while working part-time, so this discussion has been incredibly helpful! I've been worried about navigating the earnings limits, but seeing everyone's real experiences makes it feel much more manageable. One question I haven't seen addressed yet - if I start collecting benefits mid-year (say in July), does the monthly earnings test apply to the entire calendar year or just from July onward? I'm wondering if earnings from January through June (before I start collecting) would count toward the annual limit or if only earnings after I start benefits matter for that first year. Also, for those who've been through this process, how far in advance should I contact SSA before my planned start date? I'd like to have everything mapped out properly from the beginning rather than scrambling to report changes later. Thanks to everyone who's shared their experiences - this is exactly the kind of practical guidance that's hard to find elsewhere!

As someone who just went through this process myself, I wanted to share a few additional practical tips that might help with your seasonal work situation. First, when you create that monthly earnings breakdown that others mentioned, also include any expected bonuses, overtime, or irregular payments. I made the mistake of only reporting my base hourly estimates and forgot about a small year-end bonus, which caused some confusion later. Second, if your seasonal work involves any 1099 contract income (even small amounts), make sure SSA knows about this upfront. Self-employment income is handled slightly differently in their calculations, and it's better to address this from the start rather than trying to explain it later. Finally, I found it helpful to set up a simple monthly reminder on my phone to review my actual earnings against my estimates. If you're trending significantly higher or lower than expected, reporting the change sooner rather than later gives SSA more time to adjust your benefit withholdings properly. The grace year monthly limit can actually work in your favor with seasonal income patterns - just make sure SSA has the complete picture of your work situation from day one. Good luck with your application!

I'm in a similar situation - turning 64 next year and planning to work part-time while collecting benefits. This whole thread has been incredibly educational! One thing I'm still unclear on though - if I have a really good month where I earn significantly over the $1,860 limit (like $4,000), do they withhold the entire month's Social Security payment, or do they withhold proportionally based on how much I went over the limit? For example, if my monthly SS benefit is $1,500 and I earn $3,000 in wages that month (so $1,140 over the limit), would they keep my entire $1,500 benefit for that month, or would they calculate some partial withholding? I'm trying to figure out if it's worth it to occasionally take on extra work during my busy season or if going over the monthly limit essentially wipes out that month's benefit entirely.