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?

Just wanted to share my experience since I went through something similar last year. I filed for benefits in November 2024 but my first payment was for December. SSA told me that only earnings from December onward counted toward my annual limit - the months before my entitlement date didn't matter at all. The key thing is figuring out your exact entitlement date from SSA, not just when you filed or when you got your first check. I'd recommend calling them (yes, the wait times are awful) or checking your my Social Security account online to confirm your entitlement start date. That will tell you definitively whether January counts or not. Also, keep really good records of all your earnings - both W-2 wages and any self-employment income. I track everything in a simple spreadsheet month by month so I always know where I stand with the limits.

As a newcomer here, I just wanted to say how helpful this entire discussion has been! I'm in a somewhat similar situation - planning to file for early retirement benefits next year and really worried about navigating the earnings limits correctly. Reading through everyone's experiences, it's clear that the key points are: 1) Only earnings from your entitlement month forward count toward the limit, 2) In your first year you get the monthly test which can be more forgiving, and 3) It's crucial to know your exact entitlement date from SSA, not just when you filed or received your first payment. @Sean - it sounds like you're getting some great advice here. The suggestion to check your my Social Security account online for your exact entitlement date seems really smart. And keeping detailed records like Andre mentioned sounds like a must-do. One question I have - for those of you who've been through this, is there any particular time of year that's better for calling SSA to get through faster? Or is it pretty much a nightmare year-round? I'm dreading having to call them when I file next year!

As someone who recently navigated this same situation, I can confirm what others have said - only earnings from your entitlement month forward count toward the annual limit. In your case Sean, if your entitlement date is February 2025, then your January wages don't count at all. I'd strongly recommend logging into your my Social Security account online to verify your exact entitlement date. This will give you the definitive answer you need. Also, since you mentioned starting a consulting business, remember that self-employment income is counted when you receive it, not when you earn it - which can actually work in your favor for timing payments. The monthly test in your first year is really helpful for people like us who retired mid-year. As long as you stay under $1,860/month in any given month you're entitled to benefits, you'll receive your full payment for that month regardless of your annual total. One last tip - I set up a simple spreadsheet to track all my earnings month by month. It's been invaluable for staying on top of where I stand with the limits and avoiding any surprises!