Social Security earnings limit confusion - monthly vs. annual when starting mid-year?

The earnings test is both annual and monthly. For 2025, the annual limit is $23,100 if you're under FRA the whole year. BUT, there's also a monthly test for the first year you claim benefits. Here's how it works: - For January-April (before benefits start), those earnings don't count toward any limit - Starting in May (when benefits begin), you face a monthly limit of $1,925 for each month for the rest of 2025 - If you earn over $1,925 in any month from May-December, you won't get benefits for that specific month - In 2026 and later years, only the annual limit applies So yes, after your first year, you could earn $3,000 some months and $500 others as long as your annual total stays under the limit.

My sister went thru this last yr. Its sooooo confusing!! The SSA website is TERRIBLE at explaining this stuff. I think they look at monthly earnings in the begining but not sure...

There's a special rule for the first year you retire. In your case, for 2025: - Earnings from January-April aren't subject to any limit since you're not receiving benefits - From May-December, you'll be subject to the monthly limit ($1,925) - If you earn under $1,925 in any month from May-December, you'll get your full benefit for that month regardless of your total annual earnings - If you earn over $1,925 in any month from May-December, you won't get benefits for that specific month Starting in 2026, they'll only use the annual limit test, and you can distribute your earnings however you want throughout the year as long as you stay under the annual limit. See: https://www.ssa.gov/benefits/retirement/planner/rule.html

I went through this nightmare last year! Had to call SSA six times because I kept getting different answers every time! The last rep finally explained that it's BOTH monthly and annual in your first year. I spent HOURS on hold trying to get someone who could explain it clearly. If you're having trouble reaching them, check out Claimyr.com - it got me through to a real person in about 15 minutes instead of waiting for hours. They have a video demo showing how it works: https://youtu.be/Z-BRbJw3puU Saved me from losing my mind on hold music!

The 'grace year' monthly rule is CRITICAL to understand and almost nobody gets it right! In your first year of retirement (2025 for you), here's *exactly* how it works: → Any month you earn OVER $1,925 AND receive benefits = No benefit payment for that month → Any month you earn UNDER $1,925 = You get your full benefit, EVEN IF your total annual earnings exceed $23,100 This means if you earn $5,000 each month Jan-April (before benefits), then stay below $1,925 each month May-Dec, you'll get FULL BENEFITS for May-Dec despite earning way over the annual limit ($23,100). This is the 'grace year' rule that even many SSA employees get wrong.

I think everybodys mixing up SSI and SSDI here? Don't they have different rules??

my husbands on SS to and he said u can earn $1925 each month. its monthly not yearly they told him when he signed up

Thanks everyone for the helpful explanations! To summarize what I understand now: 1. For 2025 (my first benefit year), I have a special "grace year" rule: - Jan-April earnings don't count since I'm not getting benefits yet - May-Dec I need to stay under $1,925 each month to get benefits for that month 2. Starting in 2026, only the annual limit matters ($23,100 plus whatever COLA increase), and I can distribute my earnings however I want throughout the year. This makes planning so much easier! I'll keep my earnings under $1,925 monthly starting in May 2025, then in 2026 I can be more flexible with how I schedule my work.