Should I file for Social Security in December or January if I earned over the earnings limit this year?

The timing absolutely matters in your situation. If you file in December 2025, SSA will count ALL your 2025 earnings against the annual limit (which will be around $22,320 for 2025 if you're under FRA all year). Since you earned $56,000, they would withhold benefits. When you file mid-year, they use a monthly test, but December is the last month, so the annual test applies. If you wait until January 2026, then your 2025 earnings won't matter at all for the earnings test. They'll only look at your 2026 earnings of $23,000, which is still slightly over the limit, but much closer and would result in fewer withheld benefits. Honestly, if it were me, I'd wait until January to file. Cleaner break that way.

wait till january!!!! i made this mistake filing in november last year and they took back almost all my benefits cause i made too much. its not worth filing in december trust me

Question - does it matter whether OP files the application in December vs January, or is it the benefit start date that matters? I thought you could apply a few months early but specify a later start date?

Just to add some technical details: When you file for retirement benefits, you're subject to the Annual Earnings Test (AET) if you're under Full Retirement Age. For 2025, the exempt amount will be approximately $22,320. If 2025 is a "grace year" for you (meaning the first year in which you're both entitled to benefits AND have a month where you neither earn over the monthly limit nor perform substantial services in self-employment), they can apply a monthly test instead of the annual test. However, since December is your only potential month of entitlement in 2025, and you're working through December, you don't really benefit from the grace year provisions. Waiting until January 2026 is almost certainly better for you financially.

omg dealing with social security is a nightmare! tried calling them 3 times to ask questions like this and got disconnected every time after waiting FOR-EV-ER on hold

To answer your question about the grace year provision - 2025 would technically be a grace year since it's your first year of entitlement. However, for the grace year monthly test to help you, you need at least one month where you: 1) Are entitled to benefits, AND 2) Don't earn over the monthly limit ($1,860 in 2025), AND 3) Don't perform substantial services in self-employment Since you're working through December and presumably earned more than $1,860 in December, that month doesn't qualify for the monthly test. And since that's your only potential month of entitlement in 2025, the grace year provision doesn't help you. And yes, if you earn $23,000 in 2026, you'll still be over the earnings limit, but by a much smaller amount than in 2025. You'd have about $684 in benefits withheld for the year (($23,000 - $22,320) ÷ 2).

My sister thought it didn't matter what month she filed and got a nasty surpirse when they wanted all her money back! SS rules are so complicated........

One more thing worth noting: if you do end up having benefits withheld due to the earnings test, you'll get that money back in the form of a higher monthly benefit once you reach your Full Retirement Age. SSA recalculates your benefit amount at FRA to give you credit for the months when benefits were withheld. However, waiting until January 2026 is still the better option in your case because you'd avoid the immediate withholding from your high 2025 earnings.

Thank you all so much for the advice! I'm definitely going to file in December but select January 2026 as my start month. Really appreciate everyone taking time to explain this complicated system to me. I'm actually relieved - I was ready to start benefits in December thinking one extra month would be better, but now I see waiting is smarter because of how the earnings test works. You all saved me from making a costly mistake!

You're making the right decision! Just want to emphasize one more point - when you do file your application (which you can do up to 4 months early), make absolutely sure you clearly specify January 2026 as your benefit start date. Sometimes there can be confusion during the application process, and you want to avoid any mix-ups that could accidentally trigger the 2025 earnings test. Also, keep good records of your 2025 vs 2026 earnings in case SSA has any questions later. Since you're consulting part-time in 2026, they may want to verify your income projections. Having clear documentation will make everything smoother. Good luck with your application, and congratulations on your upcoming retirement!

Just wanted to add a practical tip - when you file your application, you might also want to consider how this timing affects your tax situation. Since you're earning $56K in 2025 and then dropping to $23K in 2026, starting benefits in January 2026 could help keep you in a lower tax bracket for that year. Social Security benefits become taxable once your combined income reaches certain thresholds, so the timing could have tax implications beyond just the earnings test. Might be worth running the numbers with a tax professional to see the full picture of how this decision affects both your Social Security benefits and your overall tax liability.

Great decision on waiting until January! One more consideration that might be helpful - since you mentioned you're doing part-time consulting in 2026, make sure you understand how SSA treats self-employment income for the earnings test. They look at net earnings from self-employment (after business expenses), so if you have legitimate business deductions, that could help keep you closer to or even under the earnings limit. Also, if your consulting income varies month to month, SSA can apply a monthly earnings test in some situations for self-employed individuals. Just something to keep in mind as you plan your 2026 work schedule. The monthly limit for 2026 will likely be around $1,860, so if you can structure your consulting to stay under that amount in some months, it might help with benefit calculations. You're definitely making the smart choice by taking time to understand these rules before filing!

Just wanted to say how helpful this entire thread has been! I'm in a similar situation - turning 62 next year and planning to file for Social Security while still working part-time. Reading through all these responses really helped me understand how complex the earnings test can be, especially around the timing of when you start benefits vs when you stop working. The point about being able to file your application early but specify a later benefit start date was particularly useful - I had no idea you could do that up to 4 months in advance. And the tax implications someone mentioned are definitely something I need to factor in too. Thanks to everyone who contributed such detailed and thoughtful responses. This community is such a valuable resource for navigating these complicated Social Security rules!

This has been such an educational thread! As someone who works in retirement planning, I see clients make this exact mistake all the time - filing for benefits in the same year they have high earnings without realizing how harsh the annual earnings test can be. One additional point that might be worth mentioning: when you do start benefits in January 2026, make sure to report your estimated 2026 earnings to SSA right away. Since you'll still be slightly over the limit with your $23,000 consulting income, they may choose to withhold a small amount from your monthly benefits throughout the year rather than hit you with an overpayment notice later. It's much easier to manage the withholding proactively than to deal with benefit recovery after the fact. Also, keep in mind that the earnings limit typically increases each year with cost-of-living adjustments, so the 2026 limit might be slightly higher than the $22,320 figure everyone's been using based on 2025 estimates. Every little bit helps when you're close to the threshold! You're absolutely making the right choice waiting until January. Smart planning like this can save thousands of dollars in unnecessary benefit withholding.

This thread is a perfect example of why this community is so valuable! As someone who just went through this exact situation last year, I can confirm that waiting until January was absolutely the right decision. I was earning about $48,000 when I turned 62 and almost filed in November, but after reading advice similar to what's been shared here, I waited until January. Best decision ever! Instead of having all my benefits withheld due to my high earnings year, I only had a small amount withheld the following year when my income dropped. The difference was literally thousands of dollars. One thing I'd add - when you do file your application, consider calling SSA a few days after submitting online to confirm they have the correct benefit start date recorded. I've heard of cases where there were processing errors that resulted in the wrong start month being entered into their system. A quick verification call can save a lot of headaches later! Also, make sure to save copies of everything - your application, any correspondence, and especially documentation showing your intended retirement date. Having a paper trail makes everything smoother if questions come up later. Congratulations on your upcoming retirement, and great job doing your research before filing!

As someone who just navigated this same decision last month, I can't emphasize enough how important timing is with Social Security! I was in a very similar situation - high earnings in 2024 but planning to retire at the end of the year. After doing tons of research and talking to SSA, I decided to wait until January 2025 to start benefits. The key thing to understand is that when you file for benefits in December of a high-earning year, SSA applies the annual earnings test to that ENTIRE year's income, even if you're only collecting benefits for one month. It's brutal! They don't prorate it or give you any breaks just because you worked most of the year before becoming eligible. In your case with $56,000 in 2025 earnings, you'd be looking at having about $16,840 in benefits withheld (since you're $33,680 over the limit, and they withhold $1 for every $2 over). That's way more than one month's benefit payment! By waiting until January 2026, you completely avoid the 2025 earnings test, and your $23,000 in consulting income will only result in about $340 in withheld benefits for the entire year. The math is crystal clear - waiting saves you thousands. One tip: when you apply, you can actually submit your application in late 2025 but specify January 2026 as your benefit start date. This gives SSA time to process everything so your first payment isn't delayed. Just make absolutely sure they have the correct start month recorded!

Wow, this thread has been incredibly educational! I'm not even close to retirement age yet, but reading through all these detailed explanations about the earnings test and benefit timing has really opened my eyes to how complex Social Security planning can be. The consensus here is so clear - waiting until January 2026 is absolutely the smart move in your situation. The difference between potentially losing over $16,000 in benefits versus only about $340-680 is just massive! It's amazing how one month can make such a huge financial difference. What really struck me is how many people mentioned they almost made the same mistake of filing in December without realizing the impact. It seems like this is a really common trap that people fall into. The fact that SSA applies the annual earnings test to your entire year's income, even if you're only collecting benefits for one month, seems particularly harsh but good to know about in advance. Thanks to everyone who shared their experiences and expertise - this is exactly the kind of practical advice that makes this community so valuable. Even though I won't need this information for years, I'm definitely bookmarking this thread for future reference!

This has been such a comprehensive discussion! As someone who's helped many clients navigate Social Security timing decisions, I want to emphasize one additional consideration that hasn't been fully addressed yet: the psychological aspect of this choice. Many people feel anxious about "leaving money on the table" by not starting benefits as soon as they're eligible, especially when they see that first month of December 2025 as a "lost" benefit payment. But as everyone here has clearly demonstrated with the math, that perceived "lost" month would actually cost you thousands in withheld benefits due to the earnings test. The other thing worth noting is that once you make this timing decision, it sets the foundation for your entire Social Security strategy going forward. Starting in January 2026 with minimal benefit withholding gives you a clean slate and predictable monthly payments, which makes financial planning much easier in early retirement. Also, don't forget to factor in Medicare timing if that's relevant to your situation. While Medicare eligibility starts at 65 regardless of when you claim Social Security, having a clear Social Security benefit timeline can help with overall healthcare and retirement planning. You're making a very well-informed decision based on excellent community advice. January 2026 is definitely the way to go!