Social Security earnings limit - is it based on gross or net income?

It's your gross wages that count toward the earnings test limit, not your net pay. The SSA looks at your earnings before any deductions like taxes, insurance premiums, retirement contributions, etc. So if your W-2 box 1 shows $23,000 for the year, you'd be over the limit even if your actual take-home was much less. The only deductions that don't count toward the earnings limit are special payments you might receive for work done before you started getting benefits (like bonuses for work done in previous years).

its definetly the GROSS amt that counts!! i found out the hard way last year and got hit with an overpayment notice this spring. had to pay back almost $4000 to SS!! be really careful with your hours

For clarification, the earnings limit only applies to wages or self-employment income. Other income like investments, interest, pensions, annuities, capital gains, or government benefits DON'T count toward the limit. And the good news is once you reach your Full Retirement Age (66+), the earnings limit goes away completely! You can earn as much as you want without any reduction in benefits. Also important to remember - even if your benefits are reduced because you earn too much, those reductions aren't truly "lost." The SSA will recalculate your monthly benefit when you reach Full Retirement Age to give you credit for months when benefits were withheld.

You might want to use the SSA's earnings test calculator on their website to estimate how your work could affect your benefits. It helps you run different scenarios to see what might happen at different income levels. Also, the earnings test is applied monthly only during the first year you receive benefits. After that first year, they switch to an annual test. So if you earn a lot early in the year but then stop working, your benefits later in the year won't be reduced (though this can create complications in how benefits are paid).

i thought it was net pay??!! omg i've been working way too many hours then... now im freaking out

UGH the whole earnings limit is so UNFAIR!! i worked 44 YEARS and paid into the system and now they PUNISH me for trying to make ends meet with a part-time job. meanwhile investment income doesn't count AT ALL so rich people with stock portfolios have no problems!!! the system is RIGGED against working people!!

When I was trying to reach someone at Social Security about this exact question last year, I spent days trying to get through on their 800 number. I finally used a service called Claimyr (claimyr.com) that got me connected to an agent in about 20 minutes instead of waiting for hours. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent confirmed it's gross wages that count, and they specifically look at your earnings as reported by your employer. Really helped me plan my work schedule to stay under the limit.

One more important point - if you're self-employed, the rules are a bit different. They count your net earnings from self-employment (after business expenses but before taxes). They also consider how much work you put into the business, not just your income from it. But from your post, it sounds like you have a W-2 job, so you'll need to watch that gross income number carefully.

has anyone had SSA actually contact their employer to verify earnings? or do they just wait till tax time to check everything?