Social Security earnings limit confusion - is it monthly or annual for first check in February?

For the first year you receive benefits, SSA applies a monthly earnings test rather than just the annual limit. So yes, what you earn in January before your benefits start shouldn't count toward your limit. However, starting in February, you'll be limited to earning 1/12 of the annual limit each month (that's about $1,890/month for 2025). If you go over that amount in ANY month after your benefits begin, you could lose benefits for that specific month. Working extra in January is a smart strategy. You might also look into the special rule for midyear retirees, which could help if you end up earning more than expected later in the year.

its NOT monthly!!!! my brother got BURNED by this last year. SSA looks at your TOTAL earnings for the whole year even if you only get checks for part of it. they took back almost $4000 from him!!

In my experience calling Social Security is completely USELESS for these kinds of specific questions. I spent 3 HOURS on hold last month trying to get an answer about my earnings limit situation (I'm 64 and still working part-time), and then got disconnected RIGHT when someone finally answered!!!! It's like they don't want us to understand their own rules.

I ran into this same issue when I started collecting at 65 last year. To clarify what others have said: SSA looks at what you earn AFTER you start receiving benefits. So anything you earn in January wouldn't count toward your limit since your benefits start in February. After that, there are two ways they can count your earnings: 1. Monthly test: For the rest of 2025, you can earn up to $1,890 in any month and still get benefits for that month (regardless of yearly total). 2. Annual test: If you earn over $22,680 for the year, they'll withhold $1 in benefits for every $2 you earn above the limit. If you're only working 3 days a month, you're probably fine, but you should estimate your monthly income to make sure it stays under $1,890. Working extra in January is definitely smart!

don't forget they only count EARNED income toward the limits. if you have investment income or rental properties or alimony that doesnt count against your limit!

I went through this same question last year. Here's what I learned: During your first year receiving benefits, Social Security applies a special monthly earnings test. Only the months you RECEIVE benefits count toward the earnings test. So January earnings don't matter at all for your situation. From February through December, you'll need to stay under the monthly limit ($1,890 for 2025) for any month you want to receive full benefits. If you earn more than that in any specific month, you won't receive benefits for THAT month. However! There's also something called the "grace year" provision that might help if you accidentally go over in a month. Worth asking SSA about directly. And yes, working extra in January is smart planning since those earnings won't count against you at all.

my friend says they dont even check unless you make over 30k??? has anyone heard this?

Does anyone know if the earnings limit applies to survivor benefits too? My husband passed and I'm getting his benefits at 60 (I'm 61 now) but I still work. Is it the same rules or different for survivor benefits? Sorry to hijack the thread but seems related.

Just want to add one important detail that might help - when SSA says "monthly earnings test" for your first year, they're looking at your gross wages for each month, not your net pay after taxes. So when you're calculating that $1,890 monthly limit, make sure you're using your pre-tax earnings from your accounting work. Also, since you mentioned you're working during tax season, be extra careful about any bonuses or overtime pay that might push you over the monthly limit unexpectedly. I'd suggest keeping a simple spreadsheet to track your monthly gross earnings just to be safe. Better to turn down a few extra hours than risk losing a month's worth of benefits! And definitely take advantage of working extra in January - that's free money that won't count against your limits at all.

One thing I want to emphasize that might get overlooked - make sure you understand the difference between "earnings" and "income" for SSA purposes. They only count wages and self-employment earnings toward the limit, not things like pensions, 401k withdrawals, investment income, or rental income. Since you're working at an accounting firm, you probably know this already, but I've seen people panic about their total income when SSA only cares about earned income. If you have any other sources of money coming in (like a pension from a previous job or investment dividends), those won't affect your Social Security benefits at all. Also, keep all your pay stubs from February onward - if SSA ever questions your earnings, having documentation will make resolving any issues much easier. Good luck with your retirement!

Just wanted to share my recent experience since I went through something very similar last year. I started receiving benefits in March 2024 at age 62 while still doing occasional consulting work. The key thing that saved me was understanding that SSA really does use the monthly test for your first calendar year. I was able to work almost full-time in January and February before my benefits started, then scaled back to stay under the monthly limit afterward. One practical tip: I set up automatic calendar reminders to check my month-to-date earnings around the 20th of each month. This gave me time to decline any additional work if I was getting close to the $1,890 limit. Since you're only working 3 days a month, you should have good control over this. Also, don't stress too much about going slightly over in a month - you just lose benefits for that specific month, it's not a permanent penalty. But definitely better to stay under when possible! Your January strategy is spot-on. Take advantage of those extra hours before benefits kick in!

I want to add something important that hasn't been mentioned yet - make sure you report any changes in your work situation to SSA promptly. If your boss at the accounting firm suddenly offers you more hours or a different pay structure mid-year, you should let SSA know. They have a form (SSA-723) specifically for reporting estimated earnings changes. Also, since you're working in accounting during tax season, be aware that if you do any freelance tax prep work on the side (even just helping friends/family for payment), that counts as self-employment income and goes toward your earnings limit too. I've seen people get tripped up by not realizing that side gigs count. One more thing - if you end up earning more than expected and they withhold benefits, don't panic. Any benefits withheld due to excess earnings get added back to your monthly payment once you reach your full retirement age (67 in your case). So it's more like a temporary reduction than money lost forever. Your January strategy is definitely the way to go. Work those extra hours while you can!

I'm in almost the identical situation - starting SS benefits at 62 in a few months while still doing some part-time work! Reading through all these responses has been incredibly helpful, especially learning about the monthly earnings test for the first year versus the annual test later on. One question I haven't seen addressed: does the timing of when you actually RECEIVE your paycheck matter, or is it when you EARN the money? For example, if I work in late January but don't get paid until early February (after my benefits start), which month does SSA count that income toward? Also, for those who mentioned keeping detailed records - are there any specific software tools or apps that work well for tracking monthly earnings for SS purposes? I'm not as organized as I should be and want to start on the right foot. Thanks to everyone for sharing their experiences. This thread should definitely be bookmarked for anyone dealing with early retirement and earnings limits!

I'm in a very similar situation - just turned 62 and planning to start SS benefits soon while keeping some part-time work. This whole thread has been incredibly educational! One thing I want to add based on my research: make sure you understand how SSA defines "substantial services" if you're doing any self-employment work alongside your W-2 job at the accounting firm. Even if you stay under the dollar limits, they can still withhold benefits if they determine you're providing substantial services in self-employment (more than 45 hours per month, or 15 hours in a "highly skilled" occupation). Since you're in accounting, any freelance tax work would likely be considered highly skilled, so that 15-hour threshold could apply rather than 45 hours. Just something to keep in mind as tax season approaches! Also, I've been using a simple phone app called "HoursTracker" to log my work hours and calculate monthly earnings. It lets you set different hourly rates for different types of work, which might be helpful if you end up doing both regular firm work and any freelance tax prep. The monthly reports make it easy to see where you stand relative to that $1,890 limit. Your January strategy is brilliant - I'm planning to do something similar before my benefits kick in. Thanks for starting such a helpful discussion!

I'm a benefits specialist and want to clarify a few key points that could save you from costly mistakes: 1) **Monthly vs Annual Test**: For your FIRST calendar year receiving benefits (2025), SSA uses the monthly earnings test. You can earn up to $1,890 per month without losing benefits for that specific month. This is separate from the annual test that kicks in for subsequent years. 2) **January Earnings**: Absolutely correct - since your benefits don't start until February, January earnings don't count toward any limit. Work as much as you want that month! 3) **Grace Year Rule**: There's a special "grace year" provision for your first year of retirement. Even if your annual earnings exceed $22,680, you can still receive benefits for any month where you earn $1,890 or less AND don't perform substantial services in self-employment. 4) **Self-Employment Warning**: Since you're in accounting, be very careful about any freelance tax work. SSA considers this "highly skilled" work, so more than 15 hours per month could trigger the substantial services test regardless of earnings. 5) **Reporting**: You should file Form SSA-723 if your estimated earnings change significantly during the year. Your January strategy is perfect. Just track your gross monthly wages carefully from February onward, and you should be fine with your current 3-day schedule!

As someone who just went through this exact transition last year, I wanted to add one more practical tip that really helped me. Since you're working at an accounting firm during tax season, consider asking your boss to structure your January work schedule strategically. Instead of just working "extra hours," see if you can take on some higher-value projects or tasks that might normally be spread across multiple months. For example, if there are any year-end client reviews, bookkeeping cleanup projects, or training sessions you could handle in January, that might be more valuable than just adding random extra days. This way you maximize your pre-benefits earnings while also providing real value to the firm. Also, since you mentioned you only work 3 days a month normally, January might be a good time to build up some goodwill with your employer. If you demonstrate flexibility and availability during their busy pre-season period, they might be more understanding later when you need to be strict about staying under the monthly limits during actual tax season. One last thing - make sure you get a clear written agreement about your hourly rate and schedule expectations for the rest of the year. You don't want any surprises about pay bumps or mandatory overtime that could push you over the $1,890 monthly threshold unexpectedly. Your plan sounds solid overall. That January strategy is going to pay off nicely!

This has been such an incredibly helpful thread! As someone who will be starting Social Security benefits at 62 next year while continuing some part-time work, reading through everyone's experiences and advice has been invaluable. I particularly appreciate the clarification about the monthly earnings test for the first calendar year versus the annual test in subsequent years - that distinction is crucial and not always clearly explained in the official SSA materials. The strategy of maximizing January earnings before benefits begin is brilliant and something I'll definitely be implementing. The warnings about self-employment work and the "substantial services" rule are especially important for anyone in professional fields like accounting. I had no idea about the 15-hour threshold for highly skilled work, which could easily catch someone off guard during busy seasons. For anyone else reading this thread, I'd highly recommend bookmarking it and taking notes on the key points about tracking gross monthly earnings, keeping detailed records, and understanding both the dollar limits and the hours-based tests for self-employment. Thanks to everyone who shared their real-world experiences - it's so much more helpful than trying to decode the official publications alone!

This thread has been absolutely invaluable! I'm in a similar situation - turning 62 next month and planning to file for early benefits while keeping some consulting work. The clarity everyone has provided about the first-year monthly earnings test versus the annual test has been a game-changer for my planning. One additional point I'd like to add based on my research: if you're married and your spouse is also working or receiving benefits, make sure you understand how your earnings might affect spousal benefits too. The earnings test applies individually, but the timing and coordination can get complex if both spouses are navigating benefit decisions. Also, I've found that creating a simple monthly budget that accounts for both your expected Social Security payments AND your part-time earnings helps with overall financial planning. It's easy to focus just on staying under the earnings limits, but you also want to make sure your total monthly income meets your needs. The January strategy everyone's discussing is brilliant - I'm definitely going to maximize my earnings in the month before my benefits start. Thanks to everyone for sharing such detailed, practical advice. This is exactly the kind of real-world guidance that's so hard to find elsewhere!

This thread has been absolutely phenomenal! As someone who's been considering early retirement at 62 but was terrified about navigating the earnings limits while keeping some part-time work, reading through everyone's experiences has been incredibly reassuring. The key takeaway for me is that the system is actually more flexible than I initially thought, especially with the first-year monthly earnings test. Knowing that you can earn whatever you want in January before benefits start, then stay under $1,890 per month afterward, makes the whole transition feel much more manageable. I especially appreciate all the warnings about self-employment work and the substantial services rule. As someone who does freelance consulting, understanding that 15-hour threshold for "highly skilled" work could save me from making a costly mistake. One question for those who've been through this: do you find that SSA is pretty reasonable to work with if you accidentally go slightly over the monthly limit one month, or are they strict about the rules with no wiggle room? I'm wondering if there's any practical flexibility in how they handle minor overages. Thanks again to everyone for sharing such detailed real-world advice. This conversation should be required reading for anyone planning early retirement with Social Security!

As someone who just started collecting Social Security at 62 while working part-time, I want to emphasize how important it is to track your earnings carefully using a dedicated system. I created a simple Excel spreadsheet with columns for date, hours worked, gross pay, and running monthly totals. This has been invaluable for staying under that $1,890 monthly limit. One thing that surprised me was how quickly small amounts can add up. Even working just a few days a month, if you get any unexpected bonuses, overtime, or holiday pay, it can push you over the threshold faster than you think. I learned to always ask my employer about any additional compensation before accepting extra work. Also, don't forget that if you're paid bi-weekly, some months you'll receive three paychecks instead of two, which could easily put you over the limit if you're not planning for it. I actually asked my employer to switch me to monthly pay to make tracking easier. Your January strategy is absolutely the right approach. I wish I had thought to do that - it would have given me a nice financial cushion before the earnings restrictions kicked in. Take full advantage of that month!