Social Security earnings limit question - net profit or AGI for self-employed at 65?

For Social Security earnings test purposes, they count your NET earnings from self-employment (what you report on Schedule SE), not your AGI. This is the amount after you've deducted all legitimate business expenses but before any personal deductions or exemptions. The 2025 earnings limit is $22,680 if you're under FRA for the whole year, and you lose $1 in benefits for every $2 you earn above that limit. The year you reach FRA, the limit is higher—around $60,000—and the reduction is only $1 for every $3 over the limit.

I went thru this EXACT same thing last year! Its definetly NET profit they look at, not AGI. I was so worried cause my AGI was way over the limit but my accountant confirmed its just the Schedule C net profit amount. SOOOO confusing how they explain it on the SS website!!! I wish they would just say it clear!

Just to add a bit more clarity: For self-employed individuals, SSA looks at your net earnings from self-employment (NESE), which is your net profit from Schedule C minus the employer-equivalent portion of self-employment tax. There's also a special test for self-employed people that considers both your income AND your level of work activity. If you work more than 45 hours per month in your business, they may consider you not retired regardless of earnings. Work under 15 hours monthly, and they consider you retired even if you earn more. Between 15-45 hours gets complicated - they look at skill level, responsibilities, etc.

I'm confused...isn't 65 full retirement age? Why would there be an earnings limit at all?

This is why soooo many self-employed people get SCREWED by Social Security!! The whole system is designed for W-2 employees. My brother-in-law had to pay back nearly $7,000 in benefits because he didn't understand how they counted his retirement earnings from his small business. And good luck getting through to SSA to ask questions - I spent THREE DAYS trying to talk to someone about my situation. Kept getting disconnected or waiting on hold for hours.

u mite wanna delay til FRA anyway if u can afford to. ur benefit increases by like 8% per year u wait after 65 and no earnings limit once u hit FRA. my dad kept working part time til 67 and still got full SS with no penalty.

One more important detail: When calculating your net earnings from self-employment, don't forget you can deduct the employer portion of the self-employment tax (7.65% of your net earnings), which further reduces your countable income for the earnings test. This is often overlooked and can sometimes help keep you under the threshold if you're close to the limit.

My neighbor said he just took cash payments for his consulting after he started SS and didn't report it lol

I had another question about this - if I file for benefits mid-year, does the earnings limit apply to all my earnings for the entire year, or just what I earn after I start receiving benefits?