Social Security income limits - exceeded earnings threshold but no withholding happening - what now?

Yes, you should definitely report this change in your work situation to SSA as soon as possible. They don't automatically know how much you're earning until tax information is processed, which happens well after the year ends. When they do find out (and they will), they'll assess an overpayment for the entire amount you went over the annual limit. For 2024, the annual limit was $22,320. If you've been making $2,200/month all year, that's $26,400 - which means you exceeded the limit by $4,080. SSA will reduce your benefits by $1 for every $2 you earn over the limit, so that's about $2,040 in benefits you'd need to repay. You have a few options: 1. Report the earnings now and ask them to adjust your future payments to recover the overpayment gradually 2. Request voluntary suspension of benefits until your FRA (this might be the cleanest option) 3. Continue receiving benefits but set aside money to repay the eventual overpayment The earnings test is applied annually, not monthly, which is why they haven't adjusted your payments automatically.

This happend to me last year! They didn't catch it till I filed my taxes and then BAM they sent me a notice saying I owed them $3800!!! I wish I had known sooner. The monthly limit is confusing bc they don't actually check your earning month by month.

Just to add some clarity - the $1,950 monthly limit only applies during your first year of retirement. After that, SSA only looks at your annual earnings. For 2025, the annual limit will be approximately $23,100 (they usually announce the exact figure in October). Based on your expected earnings of $2,400/month in 2025, you'll be at $28,800 for the year, which exceeds the limit by about $5,700. This means approximately $2,850 would be withheld from your benefits. Regarding your question about voluntary suspension - yes, that's definitely an option, but be aware that you can only voluntarily suspend benefits once you reach full retirement age. Before that, you'd need to withdraw your application entirely (which requires paying back all benefits received) or just deal with the earnings test reductions. My advice: Call SSA directly and explain your situation. They can help you estimate the overpayment and potentially adjust your future payments to avoid a large bill later. The earnings test will no longer apply once you reach your full retirement age of 66 and 4 months.

Gotta be honest, this earnings limit thing is the most confusing part of Social Security! I went through this exact nightmare scenario last year. I'd recommend calling SSA immediately to report your earnings and ask them what your options are. I tried for TWO WEEKS to get through on their 800 number with no luck - constant busy signals or disconnects after waiting an hour. Finally I used this service called Claimyr (claimyr.com) that got me connected to an agent in about 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The SSA agent set up a payment plan for my overpayment, which was much better than them suddenly withholding my entire benefit for several months. Definitely worth getting this sorted out proactively!

@confused_commenter - To clarify: You can't "suspend" benefits before full retirement age, but you can have benefits withheld if you know you'll exceed the earnings limit. It's a technical distinction in how SSA handles it. Your neighbor likely just had their benefits withheld due to the earnings test rather than a formal suspension. @OP - When you speak with SSA, ask specifically about having your benefits withheld due to expected earnings. They can set this up to prevent an overpayment situation. Just be aware that the earnings test calculation is based on your full annual earnings, not just the months you work.

don't panic too much, they'll just take a bit from future checks. happened to my dad and he just got smaller checks for like 6 months. its not like they charge interest or anything

One more important thing - when SSA withholds benefits due to the earnings test, those months of withholding actually increase your benefit amount once you reach full retirement age. It's as if you hadn't taken benefits during those months, so you get credit for them later. For example, if due to your work in 2024-2025, SSA ends up withholding 6 months worth of benefits before you reach your FRA, when you do reach FRA, they'll recalculate your benefit as if you had started taking benefits 6 months later than you actually did. This results in a higher monthly benefit for the rest of your life. So while it feels like a penalty now, there's a silver lining in the long run.

Update: I finally got through to SSA this morning! The representative was actually very helpful. She explained that: 1. I need to report my estimated earnings for the year 2. They'll calculate how much I'll exceed the annual limit 3. They'll withhold some of my monthly benefits in 2025 to recover the excess amount She also confirmed what someone mentioned here - that when I reach my full retirement age, my benefit will be recalculated to credit me for the months where benefits were withheld. I feel much better knowing what to expect now instead of worrying about a surprise bill. Thanks everyone for your help!