Social Security at 62 while still working until July - reporting June income confusion

I went through something similar last year. You need to notify SSA about your expected earnings for the year WHEN you apply for benefits. They'll calculate your benefits with the earnings limit in mind. For each $2 you earn above the yearly limit (which is $22,320 in 2025 if you're below your FRA), they withhold $1 from your benefits. So they'll calculate your Oct income and reduce your benefits accordingly. Then when you file taxes, it all gets reconciled. If they withheld too much, you'll get money back.

The earnings test applies to the WHOLE YEAR not just the months you're collecting SS. If you've already earned over the annual limit before even starting benefits, you might not get ANY payments until the following year!!! Happened to my brother and he was FURIOUS when he found out. The SSA doesn't exactly advertise this fact.

There's actually a special rule for the first year of retirement that might help your situation. If there's a month where you start receiving benefits and don't earn over the monthly limit ($1,860 in 2025), that month counts as a non-service month regardless of your annual earnings. So if you retire October 31st and earn under $1,860 in November, you'd get your full November payment even if you've exceeded the annual limit from Jan-Oct.

i got ss at 62 also and worked part time. ss never knew about the extra money till tax time next year. they took extra out later. no big deal just be ready for it

Trying to contact the SSA to sort this out might be your best bet. I was in a similar situation and spent DAYS trying to get through on their 800 number. I finally found this service called Claimyr (claimyr.com) that got me connected to an agent in under 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent explained exactly how the earnings test would affect my specific situation, which was way more helpful than trying to figure it out on my own. Worth every penny to avoid the 2+ hour hold times.

Something nobody mentioned yet - even though they withhold benefits when you're over the earnings limit, you actually get that money back later! After you reach full retirement age, they recalculate your benefits and give you credit for the months they withheld. Your monthly payment increases permanently.

My sister did this last year and it turned into a real mess. She got overpayment notices, had benefits suspended, and it took months to straighten out. My advice? If you're only retiring a month or two after starting benefits, just wait until you're fully retired before applying. Saves a ton of headaches.

One more thing to consider - if 2025 is your first year receiving benefits, you can use the monthly earnings test rather than the annual one. This special rule is designed for mid-year retirees. So you could start your benefits in November (when you stop working), and SS would only look at your monthly earnings from November and December, not your total 2025 earnings. This is what I did and it worked out perfectly - I got my full benefit amount for the months after I stopped working, even though I'd earned well over the annual limit already.

Did anyone mention that all this is TEMPORARY??? Once you hit full retirement age (66+), the earnings test GOES AWAY COMPLETELY. You can earn a million dollars and still get your full SS. The whole earnings limit thing only applies if you claim before your FRA.