Social Security earnings limit confusion - $22,300 for 2024 when starting mid-year?

The annual earnings limit for 2024 is $22,320 (not $22,300) for people under FRA (full retirement age). Since you started collecting in July, for 2024 only, SSA will use the monthly earnings test. That means you're allowed to earn up to $1,860 per month for any month you receive benefits in 2024 without having benefits withheld. For 2025, you'll be subject to the full annual limit (which will be higher due to COLA). As for income before you started collecting, SSA only counts earnings in months AFTER you start receiving benefits for the first calendar year. So January-June earnings won't count against you.

im in same boat started at 62 in march. they actually look at monthly not yearly for first year. $1860 per month is the limit not yearly when u first start

The Social Security earnings limit is so frustrating!! I'm 64 and they took back almost $4000 last year because I made $1200 over the limit. Didn't even warn me! Just suddenly smaller checks and a letter saying I owed them money!!! The whole system is designed to PUNISH people who want to work. And good luck getting anyone on the phone to explain it - I spent THREE DAYS trying to get through last year.

Just wanted to add that once you reach full retirement age, there is NO earnings limit. You can earn as much as you want without any reduction in benefits. So many ppl dont no this important fact.

Everyone here is giving good info about the monthly earnings test for your first year, but I want to make sure you understand how the benefit reduction works if you do exceed the limit. SSA withholds $1 in benefits for every $2 you earn above the limit. So if you earn $3,000 in July (which is $1,140 over the monthly limit), they would withhold $570 from future benefits (half of the excess). Also IMPORTANT: These benefits aren't permanently lost! When you reach FRA, SSA recalculates your benefit amount to give credit for months when benefits were reduced or withheld.

Make sure you're reporting your earnings to SSA quarterly if you're close to the limit. Don't wait for them to figure it out later through tax records. Much easier to prevent an overpayment than to deal with paying one back!

To clarify what others have said about the monthly test for 2024: 1. Only earnings in months when you RECEIVE benefits count 2. The monthly limit is $1,860 for 2024 3. Each month stands alone (no averaging) 4. Starting in 2025, they'll switch to the annual test 5. The annual limit for 2025 will likely be around $23,000-23,500 depending on the COLA Keep track of your earnings carefully, especially if you have variable income from month to month in your part-time work.

As someone who just went through this process last year, I can confirm what others are saying about the monthly test for your first year. The key thing that helped me was keeping a simple spreadsheet tracking my monthly earnings - just wages, not including things like interest or dividends which don't count toward the limit. One thing I wish someone had told me earlier: if you're doing landscaping work, make sure you understand whether you're an employee or independent contractor at your nephew's business. If you're self-employed, the earnings calculation can be different (they look at net earnings from self-employment, not gross). Also, don't stress too much about going slightly over in a month - remember that any withheld benefits will be credited back to you at full retirement age, so it's really more like a forced savings plan than a penalty. Good luck navigating this system!

Welcome to the community! As someone who's been dealing with Social Security for a few years now, I can tell you that this thread is a perfect example of how helpful this group is. The earnings limit rules really are confusing, especially when you're starting benefits mid-year like Emily did. One thing I'd add to all the great advice here is to create a my Social Security account at ssa.gov if you haven't already - it's the easiest way to track your earnings and see how they're affecting your benefits in real time. You can also use it to report earnings estimates, which can help prevent overpayments. Also, don't be discouraged by the complexity of the system. It takes time to understand all the nuances, but once you get the hang of it, it becomes much more manageable. And remember, there are people here who've been through it all and are always willing to help newcomers figure things out!