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!

Great advice from everyone here! I'm 63 and started collecting last year, so I went through the same confusion. One thing I'd add is to keep ALL your pay stubs - SSA might ask for documentation if there's ever a question about your earnings. Also, since you're working for family, make sure everything is properly documented (W-2 or 1099) to avoid any issues later. The monthly test really is a lifesaver in that first year - gives you more flexibility to take on extra work when it's available without immediately hitting the annual limit. And yes, definitely keep track of whether you're W-2 or 1099 at your nephew's business - that can make a big difference in how they calculate your earnings!

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!

As someone who's been through the Social Security maze myself, I want to echo what others have said about keeping detailed records. I started collecting at 62 last year and learned the hard way that documentation is everything. One thing I haven't seen mentioned yet is that if you're working for your nephew's landscaping business, make sure you understand exactly how you're being paid. Are you getting a regular hourly wage, or are you paid per job? The timing of when you actually receive payment can matter for the monthly earnings test - SSA generally counts earnings in the month you receive them, not when you earned them. Also, if your nephew is treating you as a family member rather than a formal employee, make sure you're both clear on the tax implications. You'll want everything above board to avoid any complications with SSA later. The last thing you want is to deal with both IRS and SSA issues at the same time! The monthly test really is a blessing in that first year - it gives you so much more flexibility than the annual limit would. Just keep good records and you'll be fine!

Just wanted to add one more thing that I learned the hard way - if you're getting paid in cash for any of your landscaping work, make sure you keep a detailed log of dates and amounts. SSA can ask for proof of earnings, and cash payments are harder to document after the fact. I recommend asking your nephew for some kind of written record (even just a simple receipt or note) each time you get paid, especially if it's not through regular payroll. Also, since you mentioned you're working about 20 hours a week, try to estimate what that might mean for your monthly earnings so you can plan ahead. At minimum wage rates in most states, 20 hours a week would keep you well under the $1,860 monthly limit, but landscaping can pay more, and you mentioned having some months with extra jobs. Better to know in advance if you might hit the limit rather than find out after the fact! The earnings limit really isn't as scary as it seems once you understand it, especially knowing that any withheld benefits come back to you later. You're being smart by asking these questions upfront!

As a newcomer to this community, I'm really impressed by how helpful and detailed everyone's responses have been! I'm 61 and will be eligible for Social Security next year, so I'm trying to learn as much as possible before making any decisions. Reading through this thread has been incredibly educational - I had no idea about the monthly vs. annual earnings test distinction for the first year, or that withheld benefits get credited back at full retirement age. The practical advice about documentation, especially for family business arrangements, is so valuable. One question that comes to mind after reading all these responses: Emily, have you considered reaching out to your local Social Security office in person rather than trying to call? I've heard from some friends that while the phone lines are terrible, sometimes you can get better help by actually going in, especially for complex situations like yours where you started mid-year. It might be worth the trip to get a clear understanding of your specific situation directly from an SSA representative. Thank you all for creating such a welcoming and informative community - I'm already learning so much just from lurking and reading!