Social Security earnings limit applies to spouse collecting benefits or me still working?

The earnings limit only applies to the person collecting Social Security benefits. Your wife needs to stay under the 2025 earnings limit (likely around $22,320 for someone under Full Retirement Age), but your earnings don't count toward her limit. You can earn as much as you want without affecting her benefits. The only time your income might affect her is if you file taxes jointly and your combined income pushes her into the range where Social Security benefits become taxable. That's separate from the earnings limit though.

my sister went thru this same thing last yr. only HER income counted for the limit not her husbands. but they did end up owing more taxes because of there combined income. social securty is so confusing!!

The earnings limit is based on gross wages before taxes and deductions. For 2025, if your wife is under FRA the whole year, she can earn approximately $22,320 without reduction (they adjust it annually with inflation). Benefits are reduced by $1 for every $2 earned above the limit. Regarding taxation: for joint filers, if your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds $32,000, up to 50% of benefits may be taxable. Above $44,000, up to 85% may be taxable. So while your income doesn't affect her earnings limit, it does factor into whether her benefits are taxable.

The SSA system is COMPLETELY BROKEN when it comes to this stuff!!! I had to call them SEVEN TIMES last year because they incorrectly applied my husband's income to my earnings limit and reduced my benefits by $4,600!!! It took MONTHS to fix and they still haven't paid me the full amount they owe me. DOCUMENT EVERYTHING and double-check your wife's payments carefully!!

one other thing to no is that when you claim ur own benefits later they look at YOUR income not both of yours. my husband got confused about this part. each person has there own earnings record that social security looks at.

To answer your question about her benefit amount: Yes, her benefit is permanently reduced because she started at 63. The reduction is approximately 20% less than her full retirement age benefit. This reduction doesn't change when she reaches full retirement age. However, she will receive annual Cost of Living Adjustments (COLAs), which typically range from 1-3% depending on inflation. And if her part-time work ends up being higher-earning than some of the years included in her benefit calculation, she might see a small increase due to recalculation.

My neighbor told me that if you make too much money they'll take your wife's whole benefit away!! Is that true? This is making me worried about my situation too.

Something nobody's mentioned yet: when your wife reaches her Full Retirement Age, SSA will actually recalculate her benefit to give credit for the months when benefits were withheld due to excess earnings. So if she does end up having some benefits withheld, she'll eventually get some of that back through a higher monthly benefit amount after FRA.

Just wanted to add one more important point that might help you and your wife plan better. Since she's 63 now and started benefits early, you might want to consider having her delay any significant part-time work until she reaches her Full Retirement Age (likely 67). Even though $15k is well under the earnings limit, every dollar she earns now while receiving reduced benefits is being calculated at her reduced rate. If she could wait until FRA to work more, she'd get the full value of any delayed retirement credits, plus no earnings restrictions at all. But I understand everyone's situation is different - sometimes you need the income now! Just something to consider as you plan your semi-retirement strategy.

I'm new to this community but going through a similar situation with my husband. One thing I learned from our financial advisor that might help - make sure your wife reports her part-time earnings to SSA promptly. They have an annual earnings test, but if she goes over the limit, they can withhold benefits monthly rather than waiting until the end of the year if she reports expected earnings early. This helps avoid a big surprise repayment later. Also, keep good records of her work hours and pay stubs - SSA sometimes needs documentation if there are any questions about her earnings. The $15k she's planning should be fine, but it's always better to be proactive with reporting!

One thing I'd add that helped us navigate this same situation - consider setting up a simple spreadsheet to track your wife's quarterly earnings throughout the year. Since the $15k part-time income should be well under the limit, you'll have peace of mind seeing the running total. Also, if she's working at her sister's shop, make sure they're handling payroll taxes correctly - sometimes family businesses get casual about proper documentation, but SSA will want to see official wage statements if they ever audit her earnings. We learned this the hard way when my mother-in-law worked for my uncle's business! The good news is at $15k annually, you're in a very safe zone, but tracking it quarterly helps avoid any year-end surprises.

I just wanted to chime in as someone who went through this exact scenario two years ago. The key thing that really helped us was creating a monthly budget that separated my wife's Social Security income from her part-time earnings, so we could easily track both for tax purposes. Since your wife is planning to earn $15k annually ($1,250/month), she's well within the safe zone under the earnings limit. One practical tip: if her sister's shop is seasonal or has variable hours, try to estimate earnings conservatively and maybe aim for closer to $12-13k to build in a buffer. We found it was much less stressful to come in under our target than to worry about accidentally crossing the line. Also, don't forget that the earnings limit only counts wages - if she ever does any freelance work or has other self-employment income, that gets calculated differently for Social Security purposes. The taxation piece that others mentioned is real - with your $95k salary plus her benefits, you'll likely pay taxes on some portion of her Social Security. But that's still usually better than the alternative of her not collecting at all! Just make sure to adjust your withholdings or set aside money quarterly for taxes.

As someone who just went through the Social Security application process myself, I wanted to add a few practical points that might help. First, make sure your wife keeps all her employment documentation organized - pay stubs, W-2s, etc. - because SSA sometimes requests these for verification, especially in the first year of benefits. Also, since you mentioned maximizing retirement income, consider that your wife's early filing at 63 actually provides some flexibility for your household. You can continue working and maximizing your own future benefit (which will be higher if you delay past your FRA), while she provides some steady income now. This can be a good bridge strategy if you're planning to semi-retire in a few years. One last tip: sign up for a my Social Security account online if you haven't already. It makes it much easier to track her benefit payments, report any changes in earnings, and access important documents. The online portal is actually pretty user-friendly once you get familiar with it.

Just wanted to share another perspective as someone who's been collecting benefits for three years now. The earnings limit confusion is SO common - I think half the people in my retirement planning group had questions about this when they started benefits early. One thing that really helped me was calling SSA directly (yes, I know the wait times are terrible) to confirm my understanding of the earnings rules for my specific situation. They actually have a worksheet they can walk you through over the phone that calculates exactly how much you can earn without affecting benefits. Since your wife is planning $15k at the sister's shop, you're definitely in the clear, but it might give you both peace of mind to get official confirmation. Also, regarding the taxation piece others mentioned - with your combined income, you'll want to consider making quarterly estimated tax payments rather than waiting until year-end. We got hit with an underpayment penalty our first year because we didn't adjust for the Social Security taxation. Live and learn! Sounds like you two have a solid plan though. The fact that you're asking these questions upfront shows you're thinking it through carefully.