Social Security earnings limit confusion - is my $23,500 limit separate from SS benefits?

The earnings limit only applies to your work income (wages or self-employment), not to your Social Security benefits. So in your example, only the $20,000 from your job counts toward the $23,500 limit. Your actual SS benefit amount isn't included in that calculation at all.Keep in mind that if you do go over that earnings limit before reaching your Full Retirement Age (FRA), SSA will reduce your benefits by $1 for every $2 you earn above the limit. Once you reach your FRA, there's no earnings limit at all.

Thank you so much for clarifying! That's a huge relief. So I can earn up to $23,500 at my job and still get my full Social Security check each month? And just to make sure I understand correctly, if I accidentally earned $25,500 (going $2,000 over the limit), they would reduce my annual benefits by $1,000, right?

Only money u make from actual work counts. Ur SS doesn't count toward the limit. Neither does pension, investments, etc. Just be careful with the math cuz they take back $1 for every $2 over the limit!

Yep! And watch out for self-employment income too, SSA counts your net earnings there. I learned that the hard way last year when I had a little side business going.

As others have correctly mentioned, only your work earnings count toward the annual earnings test limit, not your Social Security benefits. But I want to add something important: the year you first retire is treated differently. SSA has a monthly earnings test in your first year claiming benefits, which means you can earn more than the annual limit in the months before you claim benefits without penalty.Also, make sure you understand that any benefits withheld aren't lost forever. Once you reach your full retirement age, your monthly benefit will be increased to account for the months when benefits were withheld. Many people miss this detail!

This is so helpful! I had no idea about the monthly test in the first year or that withheld benefits get added back later. So if I start benefits in February 2025, do I need to stay under the monthly limit (which would be about $1,958/month) for the rest of that year? What happens in 2026?

For 2026 and beyond, you'll be subject to the annual limit until you reach your Full Retirement Age. Remember, the earnings limit usually increases slightly each year with inflation. And yes, in 2025 after you start benefits, you'd need to stay under the monthly limit for any month you want to receive your full benefit.One strategy some people use is to earn a higher amount in January (before claiming), then stay below the monthly limit after starting benefits in February.

My sister went through this whole earnings limit mess last year and almost gave up trying to reach someone at SSA to explain it properly. Spent DAYS trying to get through on the phone. She finally used this service called Claimyr (claimyr.com) that got her connected to a rep in like 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. The agent explained exactly how the monthly test worked in her first year and it saved her from making a costly mistake with her work schedule.

I'm dealing with this EXACT situation right now and it's SO FRUSTRATING!!! The SSA website is USELESS about explaining this clearly. I worked too much last year and now they're taking back money and sending me confusing letters. I called FIVE TIMES and got disconnected every single time. They make it IMPOSSIBLE to follow their own rules!!!

I feel your pain. When I went through this, I found it helpful to ask SSA to calculate my specific situation. If you're getting overpayment notices, you can request a waiver if you genuinely didn't understand the rules (Form SSA-632). The earnings limit is definitely confusing, especially with the different rules for the first year of retirement versus subsequent years.

I thought the earnings limit was $22,320 for 2025? Did they raise it again?

The 2025 limit is expected to be around $23,400-$23,600 based on inflation adjustments, though the official number hasn't been announced yet. The 2024 limit is $22,320 as you correctly noted. SSA typically announces the official new limits in October for the following year.

Something else to consider is that any income that pushes you over certain thresholds might make more of your Social Security benefits taxable. This is separate from the earnings test we're discussing, but still important for your tax planning. Up to 85% of your benefits can become taxable if your combined income (adjusted gross income + nontaxable interest + half of your Social Security benefits) exceeds certain levels.I'd recommend working with a tax professional who understands Social Security to optimize both your earnings and your tax situation before you make final decisions about work and claiming.

Thank you - I hadn't even thought about the tax implications! Looks like I need to do more research on that aspect too. It's getting complicated trying to balance work income, benefit amounts, and taxes.

When my husband turned 62 we were so confused about all this! The way I remember it is that the earnings limit only counts

Same experience here! And I just want to add that if you're married and only one person is working, the earnings limit only applies to the person actually receiving benefits. My wife kept working full-time while I took early SS and it didn't affect my benefits at all.