Social Security earnings test confusion - which income amount counts toward SS limits?

its the social security wages amount (box 3) that counts towards the earnings limit. thats what they look at when figuring out if u need to give back benefits.

For the Social Security earnings test, the SSA uses your gross wages before any deductions - the amount in Box 3 (Social Security wages) on your W-2. For 2025, if you're under FRA for the entire year, the annual limit is $22,800. Since your Box 3 shows $27,556, you would exceed the limit by $4,756. SSA would reduce your benefits by $1 for every $2 you earn above the limit. So approximately $2,378 would be withheld from your annual benefits if your earnings remain similar. Your federal tax situation is separate from the earnings test calculation. Whether you pay federal taxes or not doesn't impact how SSA applies the earnings limit.

I had a similar situation back when I filed. Ended up LOSING half my benefits that year because I didn't understand this stupid rule!!!! The SSA should explain this better to people!!!!

The reduction is typically applied monthly, but it can be a bit complicated. When you initially file, you'll need to estimate your annual earnings. Based on that estimate, SSA will withhold some or all of your monthly benefits until they've withheld the appropriate amount. If your income changes during the year, you should contact SSA to adjust your estimate. At the end of the year, they'll reconcile everything when they receive your actual earnings information. If they withheld too much, you'll get a payment back. If they didn't withhold enough, you might have to repay some benefits. Also important to note: in the calendar year you reach your FRA, the rules are more generous. During the months before your FRA in that year, the limit is much higher ($60,600 for 2025) and the reduction is only $1 for every $3 over the limit.

Just a suggestion from someone who's been there - when you need to contact Social Security about your earnings estimate or application, try using Claimyr (claimyr.com). I was trying to reach SSA for WEEKS with no luck - constant busy signals and disconnects. With Claimyr, they got me connected to an agent in about 20 minutes. You can see how it works here: https://youtu.be/Z-BRbJw3puU It made a huge difference when I needed to update my earnings estimate after I got a part-time job while collecting early retirement. Much less stressful than fighting with the phone system!

wait im confused... is SSI different from regular social security? because I get SSI for my disability and they look at all my resources not just work income. or are we talking about something completely different here?

Another option to consider - if you're earning enough at your caregiving job, it might actually be better financially to just wait until your Full Retirement Age to claim benefits. Then there's no earnings limit at all. You'd get a higher monthly benefit amount for life. Have you done the math to see if waiting might be better in your specific situation?

My sister works as a caregiver for her daughter and she had some kind of special exemption for that income. You should ask about that when you call! I dont remember exactly what it was but there was something special about caregiver income.

just wanted to say my mom was in almost the same situation. she started benefits at 63 and was working part time. they did take some money back but it wasnt as bad as she thought it would be. and now that shes past fra she gets all her money AND can work as much as she wants. so theres a light at the end of the tunnel!

As someone who just went through this process myself, I wanted to share a few additional tips that might help. First, make sure you understand that the earnings test only applies to wages from employment - it doesn't include things like pension payments, investment income, or rental income. Second, if your work schedule varies (which it sounds like it might as a caregiver), try to track your hours and earnings monthly so you can give SSA accurate estimates. I found it helpful to keep a simple spreadsheet. Also, don't forget that once you reach your full retirement age, any benefits that were withheld due to the earnings test will be added back to your monthly benefit amount for life - so you're not actually losing that money permanently, just getting it later. The whole system is confusing but it does work out in the end!

I'm in a similar boat - caring for a family member with disabilities and trying to navigate SS benefits. One thing that might be worth checking is whether your caregiving income qualifies as "self-employment" rather than regular wages, since you mentioned being a personal care attendant for your son. If you're receiving payments through a state Medicaid waiver program or similar, the classification could affect how the earnings test applies. Also, since you mentioned not paying federal taxes due to caregiver status, you might want to double-check that your income is being properly reported to Social Security. Sometimes there can be discrepancies between what's on your W-2 and what SSA has on record for your earnings. It's definitely worth asking about both of these things when you contact them!

I'm also a caregiver for a family member and went through this same confusion last year. One thing that really helped me was requesting a "benefit estimate" from SSA before I actually filed - they can tell you exactly how much your benefits would be reduced based on your expected earnings. You can do this online through your my Social Security account or by calling them. In my case, even with the earnings test reduction, I was still coming out ahead financially by filing early rather than waiting, especially since my caregiving situation (like yours) could change unexpectedly due to health issues. The peace of mind of having some guaranteed income was worth more to me than the higher benefit I'd get by waiting. Also, don't forget that any months where you earn less than the monthly limit ($1,900 for 2025) won't count against you at all - so if your hours vary seasonally or you take time off, those months could help offset the higher-earning months.

As someone who recently navigated this exact situation, I can confirm that Box 3 (Social Security wages) is what matters for the earnings test. But here's something that might help - since you're caring for your son with disabilities, make sure to ask SSA if your income is being processed through any special caregiver programs that might have different reporting requirements. Also, when you call to file or get estimates, have your last few years of W-2s handy because they'll want to verify your earnings history. The good news is that even with the earnings test reduction, you're not losing those benefits forever - they get recalculated and added back to your monthly payment once you reach full retirement age. Given your health concerns and the unpredictable nature of caregiving, starting benefits now might be the right choice even with the temporary reduction. Just make sure to report any changes in your work situation promptly to avoid overpayment issues later.

I wanted to add something that might be helpful for your specific situation as a caregiver - make sure to keep detailed records of your work hours and any time off you take for your son's medical appointments or emergencies. Since caregiving schedules can be unpredictable, you might have some months where you earn significantly less than others. SSA allows you to report changes in your expected earnings throughout the year, which can help avoid overpayments or underpayments. Also, if you're receiving payments through a state disability waiver program for caregiving, those payments might be classified differently than regular wages - definitely worth asking about when you contact them. The fact that you're already thinking ahead about this shows you're being smart about the whole process. Many people don't realize the earnings test exists until after they've already started collecting benefits and get surprised by the reductions.

One thing I'd suggest is creating a simple monthly tracking system for your caregiving work - even just a basic calendar where you note your hours and any days you had to miss work for your son's appointments or emergencies. This will be really valuable when SSA asks for earnings estimates or if you need to report changes during the year. Also, since you mentioned your caregiving payments might be through a state program, it's worth asking SSA specifically about how "consumer-directed" or "self-directed" care payments are classified for earnings test purposes - these programs sometimes have special rules that aren't immediately obvious. The most important thing is that you're asking these questions now rather than after you've already started collecting benefits. Even with the earnings test reduction, you'll likely still come out ahead financially, and having that steady income as a caregiver provides important security that's hard to put a price on.

I just wanted to say how helpful this entire discussion has been! As someone who's been putting off dealing with SS benefits because the whole thing seemed so overwhelming, reading through everyone's experiences and advice has made it feel much more manageable. The distinction between Box 1 and Box 3 on the W-2 was something I never would have known to ask about, and all the tips about tracking hours, asking about caregiver program classifications, and getting benefit estimates beforehand are invaluable. It's clear there are a lot of nuances to navigate, but having this kind of real-world guidance from people who've actually been through the process makes such a difference. Thanks to everyone who took the time to share their knowledge and experiences!

I'm just starting to research this whole Social Security benefits process myself, and this thread has been incredibly enlightening! I had no idea about the earnings test or that there was a difference between Box 1 and Box 3 on the W-2 for these purposes. Reading about everyone's experiences with caregiving situations and the various program classifications has opened my eyes to how complex this can get. I'm particularly grateful for all the practical tips about tracking hours, getting benefit estimates upfront, and understanding that withheld benefits aren't permanently lost. As someone who's been avoiding dealing with this because it seemed so complicated, seeing how supportive and knowledgeable this community is makes me feel much more confident about eventually navigating the process myself. Thank you all for sharing your real-world experiences - it's invaluable for those of us still trying to figure everything out!