Social Security earnings limit confusion - do January wages count when I started benefits in March?

They only count the money u earn in months AFTER you start getting benefits. So if your first check came in February, only count income from February onward for the annual limit. January earnings don't count!!!!

The previous response isn't completely accurate. What matters is when you're ENTITLED to benefits, not when you first receive them. If your entitlement date was February (meaning your first check covered February but arrived in March), then January earnings don't count toward the limit. But if your entitlement date was January, then those earnings would count even if you didn't receive payment until February or March. As for self-employment income, SSA counts it when you receive it, not when you earn it. And yes, you should notify SSA if you expect to exceed the limit rather than waiting for them to discover it - they'll appreciate the proactive communication and it can prevent overpayments.

Im confused about something... doesn't the month you turn your FRA (full retirement age) change everything? My sister said once you hit that month in your FRA year the earnings limit goes away completely, not just gets higher. But does that mean for the whole year or just from that month forward?? Anyone know?

To add some clarity: SSA follows a specific process for the earnings test. 1. For wages: They count earnings when they're earned, not paid 2. For self-employment: They count when received, not earned 3. For the monthly test: Only applies in your first year of retirement In your first year claiming benefits, you're subject to the monthly earnings test. This means if you earn over $1,860/month (in 2025) in any month you're entitled to benefits, you don't get benefits for that month. After your first year, they switch to the annual test. If you do exceed the limit, SSA will withhold $1 in benefits for every $2 you earn above the limit. And yes, you should definitely report expected changes to your earnings - it prevents hassles later.

Has anyone else noticed how IMPOSSIBLE it is to get through to SS on the phone to ask these kinds of questions??!! I spent 3 HOURS on hold last week trying to get an answer about my earnings limit and then got disconnected!!! Then tried again and was told the wait was over 2 hours!!! This system is completely BROKEN! How are we supposed to follow the rules when we can't even talk to someone to understand what they are???!!!

my brother in law had this same problem last yr. he went over by like $4k and they made him pay back some benefits the next yr. but they didn't charge intrest or anything. its not a huge deal if u go over a little, they just adjust things later

To respond to your follow-up question - yes, if your first entitlement month was February 2025, then January 2025 earnings don't count toward your limit. Regarding tracking, while SSA does receive wage reports from employers and self-employment income from tax returns, there's often a significant lag. I recommend keeping your own records and if you expect to exceed the limit, contact SSA proactively. You can submit an earnings estimate for the year by calling them or visiting your local office. Also worth noting - even if benefits are withheld due to excess earnings, you'll get credit for those months later. When you reach FRA, SSA will recalculate your benefit amount to account for months when benefits were withheld.

Wait a minute... I thought there was a special rule for your first year on benefits? Something about a grace period or monthly limits instead of annual? Can someone clarify this please?