Social Security earnings limit before FRA - How much can my wife earn monthly in 2025?
My wife turns 66 and 2 months (her Full Retirement Age) in June 2025. She's already filed for her benefits starting in January 2025, but she's still working part-time. I'm confused about the monthly earnings test limits for 2025. How much can she earn in each month from January through May without getting benefits reduced? Once she hits her FRA in June, there's no limit on earnings, right? Her job sometimes offers overtime, and I don't want her to accidentally go over whatever the threshold is. Also, does the SSA look at when the money is earned or when it's actually paid? Thanks for any help figuring this out!
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Daniel Washington
You're asking about the monthly earnings limit, which is different from the annual limit. For 2025, the annual limit for someone reaching FRA during that year is projected to be around $59,520 (up from $56,520 in 2024). The monthly limit would be approximately $4,960 per month for January through May. You're correct that once she reaches her FRA in June, there will be no earnings limit. The SSA looks at when the money is EARNED, not when it's paid. So if she earns money in May but gets paid in June, it still counts toward May's earnings. One important note: Only her wages from employment or net earnings from self-employment count toward the limit. Investment income, government benefits, pensions, annuities, etc. don't count.
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Lauren Zeb
•Thank you for explaining! So if she earns $5,200 in February (a bit over the monthly limit) but stays under in the other months, would they reduce her February benefit only? Or does going over in one month affect the other months too?
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Aurora Lacasse
Here's a practical tip from my experience - have your wife keep DETAILED records of exactly when she earned each dollar in those months before FRA. My sister went through this last year and had to provide her paystubs to prove when the money was earned vs. paid. Also, if your wife does accidentally go over the limit in one of those months, the SSA will only withhold benefits for THAT specific month. It won't affect other months as long as she stays under the limit in those months. This is called the "grace year provision" and it's designed specifically for people like your wife who are transitioning to retirement. Just make sure she reports any expected earnings changes to SSA in advance to avoid overpayments.
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Lauren Zeb
•This is really helpful! I didn't know about the "grace year provision" - that gives us a little more flexibility. We'll definitely keep good records of her earnings during those months.
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Anthony Young
Something similar happened with my benefits when I turned FRA in 2023. the monthly limit is way better than the yearly one. had a part time job and I earned over the limit one month and they just took back that month's SS payment. ssa is actually pretty reasonable about this stuff as long as u keep them informed.
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Charlotte White
•Let me add that it's CRITICALLY important to report earnings to SSA right away!!! I went over the limit for 3 months without telling them and they hit me with a HUGE overpayment notice six months later. Had to pay back $7,800 plus they reduced my benefit for two months to recover the rest. The system is NOT forgiving if you don't keep them informed!!!!
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Admin_Masters
you need to call the ssa and tell them. DO NOT just put it on the website, my fil did that and they never got the info. when you call have her monthly expected earnings written down for all the months before fra and also bring up any bonus or overtime she might get.
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Matthew Sanchez
•Good luck calling SSA... I spent 3 days trying to reach someone last month. Kept getting disconnected after waiting for hours. It's impossible to talk to an actual person there these days. Their phone system is completely broken.
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Ella Thompson
I've been trying to reach SSA about a similar earnings question for weeks with no luck. Finally used this service called Claimyr (claimyr.com) that got me through to an agent in about 20 minutes instead of spending hours on hold or getting disconnected. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent confirmed that the monthly earnings test for 2025 should be around $4,960 as someone mentioned above. She also said that if your wife receives vacation pay or sick pay in those months before FRA, that counts toward the earnings limit too, which I didn't know before.
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Lauren Zeb
•Thanks for the tip about Claimyr. I'll check it out if we can't get through. And good point about vacation/sick pay - my wife has some banked vacation hours she might use, so we'll need to count that too.
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Daniel Washington
One more important detail: If your wife does exceed the earnings limit in any month before reaching FRA, Social Security will withhold benefits at the rate of $1 for every $3 she earns over the limit. For example, if she earns $5,260 in February 2025 (assuming the monthly limit is $4,960), she would be $300 over the limit. SSA would withhold $100 of her benefit for that month (1/3 of the $300 overage). This is much more favorable than the withholding rate that applies to people who won't reach FRA during the year, which is $1 for every $2 over the limit.
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Lauren Zeb
•That's good to know about the 1-for-3 reduction. Her monthly SS benefit will be around $2,400, so even if she goes a bit over, it sounds like they won't withhold her entire payment. That gives us some flexibility with her work schedule.
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Charlotte White
I just went through this exact situation with MY wife last year. The monthly earnings limit was the way to go for us. But here's something NOBODY mentioned yet that tripped us up: if your wife gets any performance bonuses in those months, even if they're for work she did last year, they COUNT toward the monthly limit when paid! My wife got a $3,000 bonus in March for her work the previous year, and we had no idea it would count. Caused a whole mess with her benefits that month. Just a heads up!
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Anthony Young
•this is why the whole system is so confusing...they count bonuses based on when theyre PAID but regular wages based on when theyre EARNED? makes no sense to me but thats the ssa for ya
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Lauren Zeb
Thank you all for this amazing advice. I think I understand it better now. My wife will track her earnings carefully for Jan-May 2025, making sure to stay under the monthly limit (around $4,960) as much as possible. We'll watch out for bonuses and vacation pay too. I'm going to have her call SSA to report her expected earnings for those months, and we'll use that Claimyr service if we can't get through normally. Then once she hits FRA in June, she can earn unlimited amounts without affecting her benefits. Is there anything I'm still missing or misunderstanding?
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Aurora Lacasse
•You've got it right! Just one final tip: have your wife request a "Benefits Planning Query" (BPQY) from SSA once she starts receiving benefits. This document will show her exact FRA date, benefit amounts, and earnings record. It's a good reference to have on hand and can help spot any discrepancies early. You can request it through the local office or sometimes over the phone.
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