Social Security earnings limit confusion - self-employment and Medicare premium timing at 65

I just went through this exact process last year. Here's what you need to know: 1. Yes, the earnings limit applies the same way to self-employment as it does to regular employment. For 2025, if you're under FRA for the whole year, the limit should be around $22,320 (it increases slightly each year with inflation). 2. There's no specific hourly restriction - it's purely about dollars earned. However, for self-employment, SSA looks at both your hours worked AND your income. If you work more than 45 hours per month in your business, SSA generally considers that substantial work regardless of income. 3. You should apply for retirement benefits right away if you want January payments. It can take 2-3 months to process. You can apply online at ssa.gov or by phone. 4. Once your SS benefits start, they'll automatically deduct your Medicare premiums. Since you've paid ahead through February, they'll adjust accordingly - you won't pay twice. It might take a month or two for everything to sync up properly.

BE REALLY CAREFUL about this!!! I started SS at 63 and had my own accounting business. No one told me about the 45 hour rule and I got HAMMERED with an overpayment notice for $14,600!!! The SSA counts both income AND hours for self-employment. If you work over 45 hours a month in your business they consider that "substantial services" even if you earn under the limit. I would STRONGLY recommend you talk to someone at SSA directly before making any decisions. Their phone lines are IMPOSSIBLE but keep trying or visit your local office.

my sister had this issue. you need to track your hours AND earnings. she just kept a simple spreadsheet with dates times and earnings. the SSA can ask for it anytime up to 3 years later.

I work as a benefits counselor and can clarify a few things: 1. For self-employment, SSA applies what's called a "dual test" - they look at both your earnings and your activity in the business. The monthly hour limit of 45 hours is part of what determines if you're providing "substantial services" in self-employment. 2. You don't report hours monthly, but you do need to estimate your earnings for the year when you apply. Then at tax time, your actual earnings are reported through your tax return. 3. For Medicare premium coordination: Since you've paid through February, when your SS starts in January, they won't deduct premiums until March. The system will recognize you've paid ahead. 4. Apply as soon as possible if you want January payments. Benefits can only be paid retroactively for 6 months, and the application process takes time. Also, consider the long-term reduction in benefits by claiming early. At 2 years before FRA, your benefit is reduced by about 13.3% permanently. Make sure this makes financial sense for your situation.

I tried for WEEKS to get through to SSA to ask these exact questions last year! Finally found a service called Claimyr (claimyr.com) that got me connected to an SSA agent in under 10 minutes when I'd been trying for days. They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU It was so worth it to actually talk to someone directly at SSA instead of guessing or relying on forum advice. The agent I spoke with explained exactly how self-employment hours are counted and how to document everything properly.

just take your ss and dont tell nobody nothing about working. thats what my uncle did lol. ssa dont check unless somebody rats you out.

DONT FORGET about taxation of benefits too!!! Up to 85% of your SS benefits become taxable if your "combined income" (adjusted gross income + nontaxable interest + 1/2 of SS benefits) exceeds $34,000 for individuals. So working while collecting means you might owe taxes on most of your SS benefits! Double whammy!

Regarding your question about applying now for January benefits - yes, absolutely apply now. The processing time can vary from 4-6 weeks to several months depending on your specific circumstances and how busy your local office is. You can apply online at ssa.gov/benefits/retirement/ which is much faster than trying to do it by phone or in person. Make sure you have your tax returns from the last 2 years handy when you apply, especially since you're self-employed. They may ask for additional documentation about your business.

I waited until my full returement age so I didnt have to deal with any of this earnings limit stuff. Way simpler! But I know not everyone can wait. Just be super careful with the self-employment thing because SSA watches that really close. My neighbor got caught working too many hours in his consulting business even though he wasnt making much money and had to pay back like $9000 in benefits. Not worth the risk imho.

To address your latest question - yes, you could structure your work seasonally. The earnings test can be applied monthly during your first year of retirement. So if you have some months where you don't work at all (defined as earning less than $1,860/month and working under 45 hours), you can receive full benefits for those specific months, even if you exceed the annual limit. This is called the Monthly Earnings Test and only applies during your first year of retirement. After that, they switch to the Annual Earnings Test regardless of which months you work. Many seasonal workers use this strategy successfully. Just document everything carefully - hours worked, income received, and which months you provided no services to your business.

about the medicare premiums thing. when my dad started collecting SS they automatically refunded his medicare payments that he had already made. took about 6 weeks after his first SS check for the refund to show up. so dont worry about that part.