SS Earnings Limit Confusion - Working after claiming Social Security at 62

You need to report your estimated earnings to SSA right away. For 2024, the earnings limit for someone under Full Retirement Age (FRA) the entire year is $22,320. Since you'll earn about $38,000, you're $15,680 over the limit. They'll withhold $1 in benefits for every $2 you earn over the limit, so you'll have approximately $7,840 withheld. They won't ask for it back - instead, they'll stop your monthly payments until that amount is recouped, and then resume payments. Report it through your mySocialSecurity account or by calling.

exact same thing happened to my husband last year!!! they STOPPED his checks for 3 months then started again. Make sure u tell them ASAP dont wait or it gets worse

The good news is that when you reach your Full Retirement Age (which depends on your birth year), the SSA will recalculate your benefit and give you credit for the months they withheld benefits. This effectively increases your monthly payment going forward. So while it's painful now, you do eventually get that money back in the form of higher monthly payments after FRA. Also important to note: in the year you reach FRA, the earnings limit is much higher ($59,520 for 2024) and they only withhold $1 for every $3 you earn over the limit. And this only applies to earnings before the month you reach FRA. Once you hit your FRA month, there's no earnings limit at all.

Im in the EXACT same boat!!!! I started my SS at 63 last year and then got offered a consulting job I couldnt turn down. Makeing WAY over the limit now and totally freaking out about paying it ALL back!!!! Has anyone successfully asked SSA to just let you WITHDRAW your application instead? I heard you can do that within 12 months? Then it's like you never filed and you don't owe anything back?????

You should definitely contact SSA right away to report your expected earnings for the year. I had the WORST time trying to get through on their 800 number - kept getting disconnected after waiting on hold for 2+ hours. I finally found this service called Claimyr (claimyr.com) that got me connected to an SSA agent in about 20 minutes. They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU. Made the whole process so much easier for reporting my earnings change. The agent was able to tell me exactly how it would affect my upcoming payments.

the SSA doesnt actually take BACK anything they just stop sending u checks until they recover whatever they think you owe!! happened to my neighbor too. But when u reach real retirement age u get a bump in ur benefit thats the good news

Don't feel bad, I had the same issue in 2022. I actually wish I had just suspended my benefits voluntarily when I went back to work, would have been much simpler. But either way, they WILL recalculate your benefit at FRA and you'll get a higher monthly amount to make up for the months they withheld. One thing to watch for - make sure you're still having Medicare premiums paid somehow if they suspend your SS checks completely. You don't want a gap in Medicare coverage!

does anyone know if they count GROSS income or NET income after deductions for the earnings limit???

One more important point: The earnings limit applies only to earned income (wages or self-employment). It does NOT apply to investment income, pension payments, annuities, capital gains, or other government benefits. So if some of your $38,000 comes from these sources, it wouldn't count toward the earnings limit.