Social Security earnings limit confusion at 65 - monthly or yearly limit when starting benefits mid-year?

The earnings limit is both annual and monthly. For 2025, if you're under FRA the entire year, the annual limit is $22,320. Since you're starting benefits in March, there's a special rule for the first year. In any month you're receiving benefits, you can earn up to $1,860 and still get your full SS payment for that month, regardless of annual earnings. After the first year, only the annual limit matters. Based on your expected earnings of $33,000, you'll exceed the annual limit by $10,680, so SSA will withhold $1 for every $2 over the limit. That means approximately $5,340 in benefits could be withheld this year if your earnings are spread evenly. However, if you earn less than $1,860 in any month after starting benefits, you'll receive full benefits for that month under the monthly earnings test.

My sister went thru this exact same thing last yr! She started SS at 65 and was so confused about the earnings limits. The SS office told her wrong info twice and she ended up having benefits withheld that shouldn't have been. Make sure u get everything in writing!!

To directly answer your question: money earned BEFORE you start collecting benefits doesn't count toward the earnings limit. So your January and February earnings won't affect your benefits, even if they were substantial. After you start collecting in March, both the monthly and yearly tests apply, but in your first year, the monthly test can actually help you. If you earn less than $1,860 in any month, you get full benefits for that month regardless of your annual total. FYI - When SSA withholds benefits due to excess earnings, they withhold entire monthly payments, not partial ones, starting with January of the following year. And remember, these benefits aren't truly "lost" - after you reach FRA, your monthly benefit amount will be recalculated to credit you for the months where benefits were withheld.

i started ss at 63 and kept working nobody explained this limit stuff to me and now they want $7500 back from me 😩 make sure u understand it better than i did

FYI - The monthly earnings test in your first year is only for WAGES from employment. If you have self-employment income, they use a different test based on how many hours you work in your business (less than 45 hours/month to get benefits). Also, the earnings test only counts earned income - investment income, rental income, pensions, etc. don't count against you. The whole system is RIDICULOUS and punishes people for working. Good luck getting accurate info from SSA!

I had this exact same question last year! Have you tried calling the Social Security office? I was on hold for THREE HOURS and then got disconnected. Then tried again the next day and waited two more hours. Total nightmare.

Thank you all for the helpful responses! I'm going to try to plan the rest of my 2025 work schedule to keep my monthly earnings under the $1,860 limit after March. It's a relief to know my January and February earnings won't count against me. I'll definitely check out Claimyr to get official confirmation from SSA about my specific situation. One more question - if I do end up having some benefits withheld, how do they actually do that? Will my monthly deposits just stop for a while?

congrats on retireing!! i wish someone explained this earnings stuff to me before i started SS. would have waited til my FRA probly