Social Security earnings limit confusion - will $23,400 limit apply if I start benefits mid-2025?

Yes, the earnings limit applies, but it's prorated for the first year you receive benefits. So if you start receiving benefits in May 2025, you'd be subject to the limit for 8 months (May-December). The annual limit of $23,400 would be prorated to $15,600 for those 8 months ($23,400 ÷ 12 × 8). SSA counts earnings when they're earned, not when they're paid. So December work paid in January counts for December's earnings.

my sister went thru this last yr. they take $1 away from ur benefits for every $2 u make over the limit. its a NIGHTMARE to deal with!!! they made her pay back money later cause she didnt report right.

I can provide some clarity on this. The annual earnings limit for those under FRA in 2025 is $23,400, and SSA withholds $1 in benefits for every $2 earned above that limit. In your specific situation, here's how it works: 1. SSA applies what's called a "monthly earnings test" during your first year of retirement. This is actually beneficial. 2. During that first year only, you're allowed to receive full benefits for any month you earn under the monthly limit ($1,950) regardless of your annual earnings. 3. So even if you've earned $30,000 before starting benefits in May, as long as you earn under $1,950 each month for the rest of the year, you'd receive full benefits for those months. 4. After your first calendar year on benefits, only the annual test applies. Important: If you're going to earn consistently above the monthly limit, then waiting until closer to your FRA might make financial sense.

I went through EXACTLY this last year and what a headache!!! Called SSA like 20 times and got different answers every time!! Finally got someone who explained it clearly. The $1 for $2 reduction isn't taken evenly - they withhold ENTIRE CHECKS until they've withheld enough to cover the excess earnings. So you might not get ANY payments for several months depending on how much you're over!! I tried using the SSA calculator online but it was so confusing. The worst part was trying to reach someone at SSA. I'd wait on hold for hours and then get disconnected. BEYOND FRUSTRATING!!!!

My two cents - just wait till FRA. I tried working under the earnings limit and it was a major headache. Had to constantly worry about how much I was making, whether I'd go over, and how it would affect my benefits. When I finally hit my FRA it was such a relief. No more worrying about earnings limits! Freedom!!

One more consideration for your decision - even if you have benefit reductions due to working, those aren't truly "lost." When you reach FRA, Social Security will recalculate your benefit amount to credit you for months when benefits were reduced or withheld due to earnings. So you'll get some of that money back in the form of a higher monthly benefit going forward. That said, many people find it simpler to just wait until FRA if they're going to continue earning above the limit. It means a higher benefit amount and no earnings test to worry about. For others who need the income now, claiming early and dealing with reductions makes more sense. You might want to request a calculation from SSA to see the difference between starting now versus waiting until FRA.

dont 4get about taxes too!! my friends dad had to pay taxes on his SS when he was still working even tho they already took money away from his checks for being over the limit. double whammy!!

Just wanted to add one more important point that might help with your decision - if you do decide to start benefits before FRA and continue working, make sure to report your estimated earnings to SSA when you apply. They'll use this to calculate your monthly benefit amount and potentially withhold the right amount upfront, which can help avoid surprise overpayments later. You can also update your earnings estimate during the year if your income changes significantly. This proactive approach can save you from the headache that some others have mentioned about owing money back. The key is staying in communication with SSA rather than hoping for the best! Given that you're earning $2,600/month consistently, waiting until FRA does seem like it might be the simpler path, but at least now you know how the system works if your situation changes.

Just wanted to share my experience since I went through this exact situation in 2023. I was earning about $2,800/month part-time and started benefits in June that year. The monthly earnings test that Javier mentioned was a lifesaver - I was able to receive full benefits for the months I earned under $1,950, even though my annual earnings were way over the limit. The key thing I learned is to be super accurate with your earnings reporting. I kept detailed records of when I actually performed the work (not when I got paid) and reported everything promptly. SSA was actually pretty helpful once I got through to them - took a few tries but they walked me through exactly how the calculations work. One tip: if you're considering starting benefits mid-year, try to time it for a month when your earnings will be under the monthly limit. That way you'll at least get your first check without any reductions while you figure out the rest of the year.

As someone who recently went through the Social Security application process while still working, I'd strongly recommend calling SSA directly to discuss your specific situation before making any decisions. The earnings limit rules can be complex, and getting personalized guidance based on your exact timeline and earnings can save you a lot of headaches later. One thing I learned is that the "first year" monthly earnings test that others mentioned can be really beneficial if you're strategic about it. Since you're earning $2,600/month, you'd be over the $1,950 monthly limit, but if you have any months where you might earn less (maybe vacation time or reduced hours), those could be good months to start receiving benefits. Also, don't forget that your delayed retirement credits are growing by about 8% per year until you reach age 70, so there's real value in waiting if you don't absolutely need the income now. Run the numbers on what your benefit would be starting now versus waiting - sometimes the math clearly points in one direction. The key is having accurate information for YOUR specific situation rather than trying to piece together general rules. Good luck with whatever you decide!

I went through a similar situation two years ago and wanted to share what worked for me. At 64, I was earning about $2,400/month from consulting work and really stressed about the earnings limit calculations. What I ended up doing was creating a simple spreadsheet to track my monthly earnings and projected when I might go over limits. This helped me realize that my income varied enough month to month that the first-year monthly test could actually work in my favor for several months. The biggest lesson I learned: don't try to guess or assume anything with SSA rules. I scheduled an appointment at my local SSA office (took about 3 weeks to get in) and brought all my pay stubs and tax documents. The representative walked through my exact situation and showed me different scenarios on their computer. It was incredibly helpful and gave me confidence in my decision. One thing that surprised me was that they can actually adjust your withholdings mid-year if your income changes significantly. So if you start benefits and then your work situation changes, you're not locked into the original calculation. My advice: if you're genuinely torn between starting now vs waiting, the peace of mind from waiting until FRA might be worth more than the monthly payments, especially since you're still earning decent income. But definitely get the official numbers from SSA first!

I've been following this discussion and wanted to add a few practical tips that helped me navigate a similar situation. First, if you do decide to start benefits while working, consider setting up automatic earnings reports with SSA rather than waiting for their annual questionnaire. This keeps everything current and reduces the chance of surprise overpayments. Second, something I wish I'd known earlier: if you're unsure about your decision, you actually have a 12-month window to withdraw your Social Security application (though you'd have to pay back any benefits received). This can be a safety net if you start benefits and then realize it's not working with your work situation. Given your $2,600 monthly earnings and FRA in August 2026, I'd lean toward waiting unless you have a specific need for the income now. The delayed retirement credits really do add up, and avoiding the earnings test complexity might be worth it. But as others have said, running the actual numbers with SSA will give you the clearest picture for your specific situation. Whatever you decide, make sure to keep detailed records of when work is performed (not just when you're paid) since that's how SSA calculates earnings for the test. Good luck!

I'm glad I found this thread because I'm in a very similar situation! Reading through everyone's experiences has been incredibly helpful. I'm 63 and eligible to start benefits in a few months, but I'm also still working part-time earning around $2,800/month. One thing that really stands out from all the responses is how much the rules can vary depending on your specific situation and timing. The first-year monthly earnings test that several people mentioned sounds like it could be really beneficial, but it also seems like there's a lot of room for confusion and mistakes. @Amina Diallo - it sounds like you're getting great advice here! The consensus seems to be leaning toward waiting until FRA, especially since you don't desperately need the income right now. I'm probably going to follow the same path after reading about everyone's experiences with the earnings limit complications. Has anyone here used the SSA's online benefit calculators to compare different claiming scenarios? I'm wondering if they're accurate enough to help with the decision or if the in-person appointment route is really the only way to get reliable numbers. Thanks to everyone who shared their real experiences - this is exactly the kind of practical information that's hard to find elsewhere!

I just wanted to thank everyone who contributed to this discussion! As someone who's been navigating Social Security decisions myself, this thread has been incredibly valuable. The combination of personal experiences and detailed explanations really helps clarify what can be a very confusing topic. A few key takeaways that stood out to me: - The first-year monthly earnings test can be beneficial but requires careful planning - Proactive communication with SSA about earnings estimates can prevent overpayment headaches - The 12-month withdrawal option provides a safety net if you change your mind - In-person SSA appointments seem much more helpful than online calculators for complex situations - Delayed retirement credits at 8% annually are significant and worth factoring into the decision For anyone else reading this who's in a similar situation, it seems like the consensus is: if you don't urgently need the income and are still earning above the limits, waiting until FRA eliminates a lot of complexity and stress. But getting personalized guidance from SSA is crucial for making the right decision for your specific circumstances. Thanks again to everyone who shared their real-world experiences - this kind of practical information is invaluable!

Just wanted to add one more perspective as someone who made this exact decision last year. I was earning about $2,500/month from part-time work and ultimately decided to wait until my FRA. Here's what helped me make that decision: I called SSA and asked them to calculate both scenarios - starting benefits immediately with the earnings test vs. waiting until FRA. The difference was more significant than I expected when you factor in the delayed retirement credits AND avoid all the earnings limit complications. The representative also pointed out something I hadn't considered: once you start benefits, you're locked into the Social Security system's administrative requirements. You have to report earnings changes, potentially deal with overpayments, file annual earnings reports, etc. When I reached FRA, all of that disappeared overnight - no more earnings limits, no more reporting requirements, and a higher monthly benefit. Since you mentioned you don't desperately need the income right now, I'd really encourage you to run the numbers with SSA on what your benefit would be at FRA vs. starting now. In my case, waiting 18 months resulted in about $200 more per month for life, plus eliminated all the administrative hassles. Sometimes the peace of mind and simplicity is worth more than getting payments sooner. Whatever you decide, you're asking all the right questions and clearly doing your homework. Good luck!

I've been working with Social Security disability cases for over 15 years, and I wanted to add some clarification on a few points that came up in this discussion. First, the earnings test calculations can indeed be complex, but there's an important distinction many people miss: Social Security uses gross earnings (before taxes and deductions) for the earnings test, not take-home pay. So if you're earning $2,600 monthly in gross wages, that's what counts toward the limit. Second, regarding the "monthly earnings test" in your first year - this is technically called the "monthly earnings test for the year of retirement." It only applies during the first calendar year you receive retirement benefits, and it can be incredibly beneficial if your earnings fluctuate month to month. One strategy I've seen work well: if you do decide to start benefits mid-year, consider timing it for a month when you might have lower earnings (maybe you're taking time off or have reduced hours). This maximizes your chances of receiving full benefits for at least that first month. The key point several people made about proactive communication with SSA is absolutely correct. The worst situations I've seen are when people don't report earnings changes promptly. SSA can and will recover overpayments, sometimes years later, and it's much more stressful to deal with retroactively. Given your steady $2,600 monthly income and FRA in 2026, waiting does seem like the cleaner option, but definitely get those official calculations from SSA to make an informed decision.