Social Security deducting too much from my paycheck for earnings test - how do I fix this?

This is definitely an issue with the earnings test calculation. For 2024, if you're at FRA (full retirement age) during the year, SSA only deducts $1 for every $3 you earn above $59,520 for months before FRA. If you haven't reached FRA at all this year, the limit is $21,240 and they deduct $1 for every $2 above that. But they shouldn't be taking such a large amount so early in the year without calculating your actual projected earnings. You need to contact SSA with your estimated 2024 earnings and ask them to adjust the withholding.

They did THE SAME THING to me!!! Took over $4,000 when I was working just 15 hours a week at my daughter's gift shop. Took me MONTHS to get it fixed and they still haven't paid me back everything. The system is BROKEN!!!

You should check what your FRA actually is. It's not 65 for most people now. Probably 66 and some months for you depending on birth year.

You need to submit an SSA-521 (Request for Withdrawal of Application) and then file a new Mid-Year Earnings Report using form SSA-795. Make sure you include all documentation of your projected earnings for 2024, including pay stubs and a letter from your employer if possible. This will trigger a recalculation of your benefits withholding based on your current expected earnings rather than last year's earnings. If they've been withholding too much, you'll receive the difference as a lump sum payment once they process your request. This happened to me last year when I semi-retired from teaching - they were withholding based on my full-time salary until I filed the mid-year report.

my sister had this problem and she used a service called claimyr to get thru to ssa. she said it was way better than waiting on hold forever. the website is claimyr.com and theres a video showing how it works here https://youtu.be/Z-BRbJw3puU they just call ssa for you and then call you when they get an agent.

This is a common issue with the Retirement Earnings Test (RET). Here's what's happening: SSA is likely applying what's called a "grace year" calculation based on your 2023 earnings, which automatically assumes similar earnings for 2024 unless you tell them otherwise. Since you're between 65 and your FRA (Full Retirement Age) of 66+4 months, you're still subject to the earnings test until you reach FRA in June. However, you're absolutely right that the withholding appears excessive. Here's the proper solution path: 1. Complete form SSA-795 (Statement of Claimant) with your ESTIMATED earnings for 2024 2. Include documentation of reduced hours/earnings 3. Request immediate adjustment of withholding based on current projections 4. Ask them to refund the excessive withholding already taken By law, SSA can only withhold benefits based on a reasonable estimate of your annual earnings. If you'll earn less than $21,240 for the period January-May (before FRA), they should adjust your withholding immediately.

I had the very same issue when I retired from nursing but kept picking up occasional per diem shifts. What worked for me was going to my local SSA office in person with my last three pay stubs and my employer's letter stating my reduced schedule. They were able to recalculate everything on the spot and started my full payment the next month. They also scheduled a make-up payment for what had been excessively withheld. The agent explained they base withholding on previous year's earnings unless you provide evidence of the change in work pattern.

my mom had this happen too. took forever to fix

Update: I managed to get through to someone at SSA this morning! Used that Claimyr service someone mentioned and it worked great. The agent confirmed they were using my 2023 earnings to estimate 2024, but I was able to explain my reduced hours. They're sending me the SSA-795 form to complete and said they'll adjust my benefits for June. They also said I'll get back the excess they've already withheld once they process my paperwork. Thank you all for the helpful advice!