Social Security earnings limit confusion - monthly vs. yearly limits for survivor benefits

The SSA is notorious for not explaining the monthly earnings test clearly! I went through almost the same thing with my widows benefits last year. Yes, you DO owe them back for any month you went over the monthly limit. It's so frustrating because they focus on the annual limit during the application but then hit you with the monthly limit later. The way it works: if you're under Full Retirement Age (FRA), you're subject to BOTH tests - you can't make more than $2,270 in any month AND your annual total can't exceed $23,040 (for 2024). Going over EITHER limit can cause benefits to be withheld. The withheld benefits from those first 4 months SHOULD count toward any overpayment, but get ready for a fight to make them acknowledge this. They made me provide pay stubs for every single month to prove when I was over/under the limit.

I need to clarify some important points here about the Social Security earnings test for survivor benefits: 1. Yes, there are TWO different tests - monthly and annual. For survivors under FRA, the 2024 limits are $2,270 monthly and $23,040 annually. 2. The monthly test only applies during your first year of benefits. After that, only the annual test matters. 3. Any month you earn over $2,270 in 2024, you're not entitled to benefits for that month, regardless of your annual total. 4. The good news: the benefits that were initially withheld (your first 4 months) should absolutely be applied toward any overpayment, but you need to specifically request this calculation. 5. For 2025, if you're fully retiring as planned, you'll receive all your benefits since you won't have earnings. I recommend completing the form they sent, being very specific about which months you exceeded the limit. Then write a letter requesting that your previously withheld benefits be applied to any overpayment balance.

When I dealt with this exact issue last year, here's what I did that WORKED: 1. I filled out their form showing exactly which months I was over the limit 2. I attached a clear letter stating that I had 3 months of benefits withheld initially and requested these be applied to any overpayment 3. I included copies of my pay stubs for each month (they'll ask for these eventually anyway) 4. I sent it all certified mail and kept copies of everything The key is being super detailed about your monthly earnings. The local office representative was correct - any month you earned over $2,270 (2024 limit), you aren't eligible for benefits that month. But the benefits they withheld initially should absolutely count toward the overpayment. Also, know that even if you do end up with an overpayment balance, you can request a payment plan or potentially a waiver if it wasn't your fault and repayment would cause hardship.

the same thing happend to me!!! they never told me about monthly limits either only yearly. i had to pay back like $4500 and im still on a payment plan. its so frustrating how they dont explain this stuff clearly!

I had the EXACT same issue with Social Security last year. Trying to get through to them on the phone was IMPOSSIBLE - I tried for THREE WEEKS with no luck. Always busy signals or disconnects after waiting 2+ hours. I finally tried Claimyr (claimyr.com) to get through to a real person at SSA after my neighbor recommended it. They have this system that waits on hold for you and calls you when a real agent is on the line. Worked perfectly - I got through in about 45 minutes without having to stay on hold myself. They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU Once I got through to an agent, I was able to explain my situation about the withheld benefits and monthly earnings limit confusion. The agent helped apply my previously withheld benefits to the overpayment and I ended up owing much less than originally calculated.

The monthly earnings test is one of the most confusing aspects of SS survivors benefits! NOBODY explains it clearly during the application process. I remember when I applied after my husband died, the rep only talked about annual limits too. The most frustrating part is that they sometimes take MONTHS to process the information once you submit it. In my case, I submitted everything in March and didn't hear back until JULY about my supposed overpayment. One important thing I learned: keep track of EXACTLY which months you were over/under because their records can sometimes be wrong. I had to dispute their calculation because they counted a month I was under the limit as being over. Providing my pay stubs saved me almost $2000!

i didnt know there was a monthly limit either until i got hit with an overpayment notice too. what a nightmare! but after fighting with them for months they finally agreed to apply the benefits they withheld at the beginning towards what i supposedly owed them. be persistent!!!! they make so many mistakes

The monthly earnings test is so frustrating! My mom went through this exact situation last year with her survivor benefits. One thing no one has mentioned yet - if you're close to your Full Retirement Age, the earnings limits are different. If you'll reach FRA in 2025, the monthly limit is much higher (around $6,000/month for 2024). Also, be aware that they sometimes apply different rules depending on whether you're self-employed or a regular employee. Are you a W-2 employee at your sister's shop or considered self-employed? This can affect how they count your earnings. As others mentioned, definitely request that those 4 withheld months be applied to any overpayment. This is your right but sometimes gets overlooked unless you specifically ask for it.

I want to add one more important point that hasn't been mentioned yet: Since you're planning to fully retire in 2025, you should submit a new estimate of zero earnings for 2025 as soon as possible. This will prevent SSA from withholding any benefits next year. Also, make sure you understand the difference between the Annual Earnings Test and the Monthly Earnings Test: - Monthly Test: Only applies in your first year receiving benefits. Any month you earn over the limit ($2,270 for 2024), you don't receive benefits for that month. - Annual Test: Applies every year until you reach Full Retirement Age. For every $2 you earn above the annual limit ($23,040 for 2024), SSA withholds $1 in benefits. The good news is that these withheld benefits aren't lost forever. Once you reach FRA, SSA recalculates your benefit amount to give credit for months benefits were withheld.