Social Security earnings limit: Getting back withheld benefits after making under $22,320 in 2024

This happens quite often. When your earnings are expected to exceed the limit, Social Security withholds payments preventively. Once you prove your actual earnings were under the limit (which you did by filing your annual report), you'll receive all withheld amounts as a lump sum payment. In my experience, this payment typically arrives within 60-90 days after they process your annual earnings report. If you don't see it by mid-April, I'd recommend calling to check on the status. Just be prepared for a long wait time on the phone.

Had same thing happen to me. They held back 6 months of checks then one day BAM big deposit in my account. No warning or nothing just got the money back. Took about 2 months after i sent in my w2.

I went through this exact situation last year. Here's what will happen: 1. Your annual earnings report will be processed (takes 2-3 weeks) 2. SSA will determine you were under the earnings limit 3. They'll issue a lump sum payment for all withheld benefits 4. This payment will come separately from your regular monthly benefit 5. You should receive a notice in the mail AFTER the payment has been issued In my case, the payment appeared in my account about 45 days after I submitted my earnings report. The system is actually quite efficient for this particular process since it's automated. The important thing is that you've already submitted your report - now it's just a waiting game. Also, just to clarify for anyone else reading: the earnings limit for 2024 is $22,320 for those under Full Retirement Age (FRA), and in the year you reach FRA, the limit increases to $59,520 for the months before your FRA. After FRA, there's no earnings limit at all.

The SSA system for handling earnings limit adjustments is RIDICULOUS!!! They take your money then make you WAIT months to get it back! No interest, no apology, nothing! I waited FOUR MONTHS last year to get my lump sum after proving I was under the limit. Then they have the nerve to tell you it's your responsibility to notify them if your estimate changes. The whole system is designed to confuse seniors!!!

Try using Claimyr to reach SSA directly and get a firm timeline. I was in a similar situation with withheld benefits and spent weeks trying to get through on the phone. A friend recommended Claimyr (claimyr.com), and I was connected to an agent in 20 minutes! They gave me the exact date my payment would arrive. You can see how it works in this video: https://youtu.be/Z-BRbJw3puU - honestly the best money I've spent dealing with gov bureaucracy.

There's one important detail I want to add: make sure you keep documentation proving your income was under the limit. While the SSA should process your annual earnings report and issue the lump sum payment automatically, it's good practice to have backup documentation in case of any discrepancies. Also, for future reference, if your income changes significantly during the year and you know you'll be under the limit, you can contact SSA mid-year to adjust your estimate. This could prevent them from withholding benefits unnecessarily. The earnings test is one of the most misunderstood aspects of Social Security. Remember that after you reach your Full Retirement Age, the earnings limit no longer applies at all, and you can earn any amount without affecting your benefits.

my brother had this happen he said it took 2 months to get the $$ back. good luck

I just remembered something else - when I got my lump payment it showed up as "XXSOC SEC" on my bank statement which was different from my regular monthly deposit that shows as "XXXXSSI". So watch for that.