Social Security earnings limit when starting before FRA - annual or 12-month period?

The earnings test is applied on a calendar year basis (January through December). If you start benefits in May 2025, they would consider your total earnings for the entire 2025 calendar year, though they do have special rules for the first year you retire.In the first year, they can apply a monthly earnings test rather than the annual one, which helps people who retire mid-year. So if you start benefits in May 2025, they'll only count your earnings from May-December against the limit, dividing the annual limit by 12 and then multiplying by the number of months you're receiving benefits (8 months in your example).After that first year, it's strictly January-December for the annual earnings test period.

That makes so much more sense! So for the rest of 2025 after I start claiming in May, I'd essentially have 8/12 of the annual limit to work with ($21,240 ÷ 12 × 8 = $14,160). And then in 2026 I'd be subject to the full annual limit for that year. Thank you for explaining this - I was worried I'd have to track a rolling 12-month period, which seemed complicated.

it doesnt work like that!!! its ALWAYS per calendar year jan-dec. doesnt matter when u start ss. my brother had to pay back almost 4000 last year cuz he didnt know this. they look at ur WHOLE years income even months b4 u file!!

That's not entirely accurate. While the earnings test is generally applied on a calendar year basis, the SSA does have special rules for the first year you claim benefits. They allow a

I went through this last year! The SSA rep told me that for the first year you retire, they look at your monthly earnings after you start benefits. So it's not the whole calendar year if you have what they call a \

That's reassuring to hear someone else had this experience. Did you have to specifically request they use the monthly method, or did they automatically apply it? I'm worried about dealing with them correctly when I file.

My sister claimed at 63 and she said they definitely went by the calendar year, January through December. They made her pay back some benefits the next year when her W-2 showed she went over the limit. The lady at the office told her it always resets January 1st. So I wouldn't count on any monthly calculations if I were you.

Your sister's situation might have been different. The monthly earnings test for the first year only applies if you have a \

Hey guys, I had the WORST time reaching anyone at Social Security when I was dealing with this same earnings limit issue last year. After getting disconnected five times, I tried a service called Claimyr (claimyr.com) that got me connected to an SSA agent in about 15 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puUThe agent confirmed they use the monthly earnings test for the first year if you have what they call a \

I've heard of Claimyr! A friend recommended it when I was trying to sort out my widow's benefits. Definitely better than waiting on hold for hours. And yes, that's exactly what they told me about the earnings test too.

WRONG INFORMATION EVERYWHERE! The earnings test is more complicated! I work for H&R Block and here's the truth: If you're under FRA for the ENTIRE year, the $21,240 limit applies for the calendar year (Jan-Dec). BUT, in your first year of retirement, the SSA lets you use something called the 'Monthly Earnings Test' where they only count earnings in months AFTER you start benefits AND are actually retired. The monthly limit is $1,770 for 2025 ($21,240 ÷ 12). After that first year, it's back to annual calendar basis. TRUST ME ON THIS!!!!

Thanks for this detailed explanation. So to be clear, for me to qualify for this Monthly Earnings Test in my first year, would I need to earn under $1,770 in each individual month after I claim? Or is it still a cumulative amount for the remaining months of that year?

To answer your follow-up question: For the Monthly Earnings Test to apply in your first year, you need to earn under $1,770 in EACH month you want to receive full benefits. If you earn over that monthly amount in any month, you won't receive benefits for that specific month. It's evaluated month by month, not cumulatively. For example, if you earn $1,500 in June but $2,000 in July, you'd get your full June benefit but might lose your July benefit.

I really appreciate this clarification! That's actually better than I thought since it means I could have a higher-paying project one month and just lose benefits for that month rather than having it affect my whole year. This helps tremendously with my planning.

I'm getting ready to claim my benefits in a few months and worried about the same thing! I called the SS office last week and was on hold for HOURS and finally gave up :( Does anyone know if they send you a warning before they make you pay money back if you go over the limit? Or do they just automatically deduct it from future payments? I'm so stressed about this.

They typically don't send warnings in advance, but they will notify you if they determine you've been overpaid. If you realize you're going to exceed the limit, it's best to proactively report this to SSA so they can adjust your benefits accordingly. They can either withhold future payments or set up a repayment plan if the overpayment is large. Try to estimate your annual earnings in advance and update SSA if your situation changes.

My brother just went thru this. He started SS at 62 last year but kept working. They don't track it by the month u start. Its always Jan-Dec. And they don't check ur earnings until after tax season when they get ur W2 info. Then they send u a letter saying u owe them money if u went over. It's all so confusing and the website is useless!

Your brother's situation sounds like he didn't qualify for the monthly earnings test in his first year. To qualify for monthly tracking, you need to have what SSA calls a \