Social Security earnings limit reporting - monthly in first year but yearly after?

The first calendar year that you receive benefits before FRA is different than subsequent years. In your first year, SSA applies a monthly earnings test where you can earn up to $1,850/month (2025 amount) without affecting benefits, regardless of your annual total. This is called the Monthly Earnings Test. For 2026 and beyond, they'll switch to the Annual Earnings Test where they look at your total yearly income vs. the annual limit (about $22,200 for 2025). They'll typically send you an earnings estimate form at the beginning of each year asking for your YEARLY projection. So yes, it changes from monthly to annual after your first year collecting benefits. Hope this helps!

Hi there! I went through EXACTLY this last year. Yes, it's confusing! First year is monthly reporting (which honestly helped me because I could earn more during some months and nothing during others). But starting January 2026, they'll just look at your ANNUAL earnings. The SSA will probably send you an earnings estimate form in late December or early January asking what you expect to make for the ENTIRE 2026 year. If you think you'll go over the yearly limit (which will be around $23,000 in 2026), they'll withhold benefits accordingly throughout the year. One important thing: keep track of exactly when you hit FRA. Once you reach full retirement age, the earnings test goes away completely and you can earn unlimited income without affecting your SS benefits!

My wife had the same situation. In the 1st year they do monthly reporting which is a pain (make sure you keep copies of everything you submit). After that they just asked for yearly estimates. She ended up going back to work full-time and we had to pay back some benefits, but it all worked out.

They'll ask for yearly estimates after your first year receiving benefits (the first year they do monthly because of the grace year provision). Just be careful about your estimates - if you underestimate what you'll earn, you could end up with an overpayment notice and have to pay back benefits. If this happens, DON'T PANIC. You can request a payment plan. They may withhold future benefits to recoup the overpayment. I've had to call SSA multiple times about earnings reporting issues, and it's frustrating. They disconnect you after waiting for hours. I started using Claimyr (claimyr.com) to get through to an actual SSA agent without the wait. There's a video showing how it works at https://youtu.be/Z-BRbJw3puU - basically saves you from waiting on hold for hours. Wish I'd known about it sooner!

The monthly earnings test for your first year recieving benifets is actually helpful to many people because even if you exceed the annual limit, you can recieve full benifets for any month you don't earn over the monthly limit!! But yes, after first year they only look at annual earnings not monthly. Make sure your using the right earnings limit - for people in the year they reach FRA its much higher than for younger retirees!

THEY ARE CONSTANTLY CHANGING THE RULES!!!! i had to deal with this in 2023 and they made me report QUATERLY not monthly or yearly!!!! its all a mess and they will probably change it again by the time you need to report in 2026!!!!

Just went through this transition last year. First year is monthly (which they call your "grace year"), then it switches to annual. What nobody tells you is that you need to be proactive about updating them if your income situation changes during the year. I got a higher-paying part-time job mid-year and didn't think to notify them until my tax return showed much higher earnings than I'd estimated. Ended up with a $4,300 overpayment I had to deal with. Don't make my mistake!

One additional thing to note - make sure you understand what counts as "earnings" for the earnings test. It's generally only wages from employment or net earnings from self-employment. Things that DON'T count: pension payments, investment income, interest, annuities, capital gains, or insurance payments. This trips up a lot of people when estimating their earnings!