Social Security earnings limit: Does SSA count when I'm paid or when I earn the income?
So confused about the Social Security monthly earnings limit! I'm going to start drawing SS retirement this year while still working part-time. My FRA is 67 but I'm starting at 63, so I know I'm subject to the $1,950 monthly earnings limit for 2025. My question is HOW does SSA determine which month the income counts toward? My work schedule is irregular - sometimes I work a lot of hours in one month but don't get paid until the following month. Does SSA look at when I actually earned the money (worked the hours) or when my employer deposits my paycheck? I'm trying to plan my work schedule carefully so I don't accidentally go over in any month and lose benefits. My HR department wasn't sure about this when I asked them. Anyone deal with this before?
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Evelyn Martinez
SSA counts income when it's EARNED, not when it's paid. So if you work extra hours in April but don't get the paycheck until May, those earnings count toward April's limit. I went through this last year when I started my benefits. The rule caused me problems because I had some vacation pay that counted for the month I earned it years ago, not when it was paid out! Really messed up my calculations.
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Alexander Evans
•Thank you! That's exactly what I needed to know. So I should track my hours/earnings by work date, not by payday. I'm guessing I need to keep really good records then because my paystubs won't show exactly when the work was performed?
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Benjamin Carter
my sister had this same question when she retired!!! pretty sure its when u get PAID not when u work the hours, at least thats what happened with her. she kept working under the limit but the ssa still reduced her check one month because of when the money hit her account.
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Evelyn Martinez
•That's not correct according to SSA rules. It's definitely when earned, not when paid. Your sister might have misunderstood what happened with her benefits. The Social Security Program Operations Manual System (POMS) specifically states that wages count when earned, not when paid.
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Maya Lewis
The monthly earnings test is such a NIGHTMARE to deal with! I tried to work part-time last year and gave up because I could never figure out if I was over the limit or not. My employer's payroll system didn't match up with how SSA was counting things. Ended up with an overpayment notice for $2,700 that I'm STILL fighting with them about. Just be SUPER careful and document EVERYTHING.
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Alexander Evans
•Oh no, that sounds awful! Did you ever get through to someone at SSA to explain your situation? I'm worried about exactly this kind of problem.
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Benjamin Carter
wait i'm confused now... so do bonuses count in the month you get them or the month you earn them? and what about overtime pay?
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Isaac Wright
•Bonuses and overtime are both counted when earned, not when paid. The tricky part with bonuses is determining when they were "earned" - if it's a performance bonus for work done throughout the year, SSA might prorate it across the months it was earned. For overtime, it's counted in the month you actually worked those hours. The Social Security rules on this are found in their Program Operations Manual System (POMS) section RS 02505.040.
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Lucy Taylor
I dealt with this exact issue when I started my benefits in 2023. After many frustrating attempts trying to call SSA directly (always disconnected after 1+ hour waits), I found a service called Claimyr (claimyr.com) that got me connected to an SSA agent in about 20 minutes. The agent confirmed it's when you EARN the money, not when you're paid. She also told me to keep detailed records showing when I worked each hour in case there's any question later. There's a demo video of how their service works here: https://youtu.be/Z-BRbJw3puU - saved me days of frustration.
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Alexander Evans
•Thanks for the tip! I've been trying to call SSA for a week without getting through. I'll check out that service.
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Connor Murphy
This earnings limit stuff is exactly why I waited until my full retirement age to claim benefits. No limits to worry about! But if you're determined to work while claiming early, you should know that even if they reduce your benefit now because you earn too much, they'll recalculate and give you credit later when you reach FRA. So you don't permanently lose the money.
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Alexander Evans
•I understand they'll adjust it later, but I really need both my part-time income AND the full SS benefit right now to cover my expenses. I can't afford to have my monthly check reduced even temporarily.
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KhalilStar
Don't forget the annual limit too! Monthly limits only apply during your first year receiving benefits. After that it's just the annual limit ($21,240 for 2025 if you're below FRA for the whole year).
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Alexander Evans
•Good point! Since I'm starting benefits mid-year in 2025, I'll have to track both the monthly and annual limits this year, right? Then just the annual limit in 2026?
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Isaac Wright
To directly answer your question and confirm what others have said: SSA counts income when it's earned, not when it's paid. This is outlined in their Program Operations Manual System (POMS) section RS 02505.040. For practical purposes, keep these records: 1. Detailed timesheets showing exactly when you worked 2. Pay stubs showing how much you earned 3. A month-by-month calculation of your earnings Also, be aware that if you're self-employed, the rules are different - they look at both when you perform the services AND substantially what hours you put into the business. Finally, if you're close to the limit, consider working with an SSA-experienced financial advisor to help you stay under the thresholds.
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Alexander Evans
•Thank you for the detailed explanation! I'll start tracking everything right away. I'm not self-employed thankfully, just working regular part-time hours at a retail store, but with a somewhat irregular schedule.
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Benjamin Carter
my neighbor got hit with a BIG bill from SSA for working too much... like $8000 they wanted back!!! be super careful
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Alexander Evans
•Yikes! That's exactly what I'm trying to avoid. Did your neighbor have to pay it all back?
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Benjamin Carter
yeah they took some out of every check until it was paid back... took like 2 years! so frustrating
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Maya Lewis
The WHOLE system is designed to CONFUSE people and then PUNISH them for honest mistakes!!! I reported my earnings EXACTLY as my accountant told me to, and STILL got an overpayment notice. When I finally got someone on the phone after WEEKS of trying, they couldn't even explain WHY I had an overpayment!!! The government WANTS us to fail!
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Evelyn Martinez
•I understand your frustration, but I think it's more about an underfunded and understaffed system than a deliberate attempt to confuse people. The rules are complicated because they're trying to be fair across many different work situations. But I agree they do a poor job explaining the rules clearly to beneficiaries.
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Alexander Evans
Thanks everyone for the helpful information! It sounds like I need to: 1. Track income by when I EARN it, not when I'm paid 2. Keep detailed records of when I work each day/hour 3. Stay well under the $1,950 monthly limit to be safe 4. Consider getting professional help with planning my work schedule I really appreciate all the advice. This community has been way more helpful than my HR department or the SSA website!
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