Social Security monthly earnings limit confusion - can I exceed $1,950 some months if annual total stays under $23,400?

The monthly limit only applies during the first year u claim benefits. So if u go over $1950 in some months but stay under the annual limit for the whole year, SSA won't care. They just look at the total. Just make sure u report your estimated earnings when u apply and update them if things change.

There's actually an important distinction here. The monthly earnings test applies ONLY in the first calendar year you receive benefits. Since you're starting in February 2025, the monthly test would apply for calendar year 2025. For the months you receive benefits in 2025, if you earn over $1,950 in any month, you could lose benefits for that specific month, EVEN IF your annual earnings are below $23,400. This is a common misunderstanding. However, there's a special rule for the first year. SSA will pay a full benefit for any month you're "substantially retired" - meaning you earn less than the monthly limit OR don't perform "substantial services" in self-employment, regardless of how much you earn in other months. I recommend calling SSA directly to discuss your specific situation, as this can get complicated with variable earnings.

To clarify: Yes, in your first calendar year of receiving benefits (2025 in your case), the monthly earnings test DOES apply. This means for any month in 2025 that you earn over $1,950, you could have benefits withheld for that specific month, even if your annual total stays under $23,400. Starting in 2026, only the annual limit would apply. This is directly from SSA's rules about the retirement earnings test: "In the first year that you work and receive benefits, we use a monthly earnings test. This means that regardless of your yearly earnings, you can receive a check for any month that you earn less than the monthly limit amount.

Everyone's missing a key detail here. The monthly earnings test only applies in a PARTIAL year of retirement. Since you're starting benefits in February and working all year, you're under the ANNUAL test, not the monthly test. The monthly test is for people who retire mid-year (like if you worked January-July, then retired completely in August and started benefits then). From SSA's website: "In the first year of retirement, the Social Security Administration counts earnings for that year on a monthly basis. That's because many people retire in mid-year, having already earned more than the annual exempt amount." Since you're working throughout the year (just with varying income), you'll be fine as long as your total stays under $23,400. I went through this exact situation when I retired at 63 and continued part-time consulting.

I had THE EXACT SAME PROBLEM last year!!! The SSA website is SO confusing on this. I started my benefits in March 2024 and was working part time at Walmart. They kept scheduling me more hours during holidays and I went over the monthly limit twice but stayed under the yearly amount. SSA TOOK AWAY my benefits for those 2 months!!! Had to go through a whole thing to get them back. CALL THEM DIRECTLY and get it in writing!!!!!

I've called SSA about this exact issue when helping my brother with his retirement planning. The agent confirmed that if you're working throughout the year (not retiring mid-year), they apply the annual limit. But here's the thing - reaching an agent who actually understands the nuances can be nearly impossible with wait times. I discovered a service called Claimyr that got me through to an SSA agent in under 20 minutes. They basically navigate the SSA phone system for you. You can see how it works in their video demo: https://youtu.be/Z-BRbJw3puU or just visit claimyr.com. It saved me hours of hold time frustration. Definitely worth getting clarification directly from SSA on this since your specific work pattern might affect how they view your situation.

My sister in law works for SSA and she told me the monthly test is ONLY for the first year you start benefits AND only if you aren't working the whole year. If you're working jan-dec, even part time with different amounts each month, they just look at the annual total. Don't stress about the monthly amounts as long as your total stays under $23,400!

just wondering why ur starting benefits before FRA anyway? dont u get more money if u wait? my dad waited till 67 and got way more

Did u check with ur employer? my cousin got messed up cuz her company reported her earnings differently than she thought and she ended up going over the limit without realizing it. might wanna double check how they'll report ur income during tax season

I work as a benefits counselor and see this confusion all the time. The key thing to understand is that SSA applies different tests depending on your situation. Since you're starting benefits in February but continuing to work throughout 2025, you'll be subject to the annual earnings test ($23,400 limit) rather than the monthly test. The monthly test is specifically for people who have a true "retirement" mid-year where they stop working entirely. However, given the conflicting experiences shared here (like Oliver's situation), I'd strongly recommend getting written confirmation from SSA about your specific work pattern. When you call, be very clear that you're working part-time throughout the entire year with seasonal fluctuations, not retiring mid-year. Document the conversation with the representative's name and date. Also, make sure your daughter's firm reports your earnings correctly and consistently. Since it's a family business, SSA might scrutinize the arrangement more closely, so having everything properly documented will protect you both.

As someone who just went through this process myself, I can confirm what StarStrider said - the distinction really matters! I started my benefits in March 2024 and worked part-time at a seasonal retail job with higher earnings during holiday months. SSA applied the annual test because I was working consistently throughout the year, not retiring mid-year. The key is how you describe your work situation to SSA. When I called, I made sure to emphasize that I was working part-time year-round with seasonal variations, not stopping work and then starting again. They classified it as continuous employment with variable hours rather than a mid-year retirement scenario. One tip: when you report your estimated earnings, break it down by month so they can see the seasonal pattern. This helped them understand my situation wasn't a true retirement/return to work case. Good luck with tax season!

Based on all the discussion here, it sounds like there's still some confusion about the rules. Let me share what I learned when I went through this exact situation two years ago. I started benefits in March and worked part-time at a bookkeeping service with heavy hours during tax season. The key distinction is whether SSA considers you to have "retired" mid-year or if you're working continuously throughout the year. Since you're working part-time all year (just with seasonal variations), they should apply the annual test, not the monthly test. However, I'd recommend doing three things: 1) Call SSA and specifically ask them to document in your file that you're working part-time year-round with seasonal fluctuations, not retiring mid-year, 2) When reporting your estimated earnings, break it down month by month so they can see the pattern, and 3) Keep detailed records of all communications with SSA. The conflicting experiences people have shared show that individual SSA representatives sometimes interpret these rules differently, so getting it properly documented upfront is crucial. Don't let the busy season stress you out - just make sure everything is clear with SSA before February!

Just wanted to add another perspective as someone who recently navigated this with my local SSA office. The representatives I spoke with emphasized that the monthly test is specifically for people who have a "grace year" - meaning they retire from their career job mid-year and then have months where they earn very little or nothing at all. Since you're planning to work consistently throughout 2025 (just with seasonal fluctuations), you shouldn't fall into the grace year category. However, I'd definitely recommend what others have suggested about calling SSA and being very specific about your work pattern. One thing that helped me was actually visiting my local SSA office instead of calling. The wait was shorter and I could show them a written breakdown of my expected monthly earnings. The agent was able to make notes in my file right there, which gave me peace of mind. Sometimes face-to-face communication works better for these nuanced situations than trying to explain over the phone. Good luck with your benefits application and your busy tax season!

I've been following this discussion with interest as I'm planning to start my own benefits soon. What strikes me is how much conflicting information there is even among people who've actually been through this process. It seems like SSA representatives themselves don't always interpret these rules consistently, which is really concerning for those of us trying to plan ahead. The distinction between "continuous part-time work with seasonal variations" versus "mid-year retirement" seems to be the critical factor, but it's clear that how you communicate this to SSA matters enormously. I really appreciate everyone sharing their real-world experiences - both the successes and the problems like Oliver's situation. For anyone else reading this thread who's in a similar situation, it sounds like the key takeaways are: 1) Be very specific about your work pattern when talking to SSA, 2) Get everything documented in writing, and 3) Consider visiting a local office for face-to-face clarification rather than relying solely on phone calls. The monthly breakdown suggestion also seems smart for showing the seasonal nature of the work. Thanks to everyone who shared their experiences - this kind of real-world knowledge is invaluable when the official guidance is so confusing!

I'm dealing with a similar situation and wanted to share what I learned from my experience last year. I started benefits in April 2024 and work part-time at a tax prep office with the exact same seasonal pattern - busy February through April, then much lighter hours the rest of the year. After reading through all these conflicting experiences, I called SSA three different times and got three different answers! The first rep said monthly limits apply, the second said only annual, and the third wasn't sure. Finally, I took Lucy's advice and went to my local office in person. The agent there was incredibly helpful and explained that the key is how SSA classifies your work pattern in their system. She showed me that they have specific codes for "continuous part-time employment with seasonal variation" versus "grace year retirement." Since I was working consistently all year (just with different hours), they coded me for the annual test only. She also mentioned that working for a family business (like your daughter's firm) might require additional documentation to show it's legitimate employment, not just family financial arrangements. Make sure you have proper employment paperwork, pay stubs, and tax reporting in place. My advice: definitely visit in person with a month-by-month breakdown of your expected earnings. Having them code your situation correctly upfront will save you from the kind of nightmare Oliver experienced. Good luck with tax season!

I'm in almost the exact same situation! Starting benefits in January at 64 and working part-time at a CPA firm with the same seasonal pattern - crazy busy January through April, then very light hours the rest of the year. After reading through all these experiences, I'm convinced the in-person visit is the way to go. The fact that Tyler got three different answers from three different phone reps is exactly what I was afraid of. It sounds like having SSA properly code your situation in their system as "continuous part-time employment with seasonal variation" is absolutely critical. One question for those who've been through this - when you visited your local office, did you need to bring any specific documentation beyond the month-by-month earnings breakdown? I'm wondering if I should bring something showing the seasonal nature of tax work to help explain why the hours fluctuate so much during certain months. Thanks to everyone who shared their real experiences here. This thread has been way more helpful than anything I could find on SSA's website!

As someone who went through this exact scenario with my local SSA office last year, I can confirm what many others have said - the in-person visit really is the best approach. I started benefits in March 2024 while working part-time at a seasonal retail job with higher earnings during holiday periods. The key insight I gained from my visit was understanding that SSA has very specific criteria for determining whether you fall under the monthly or annual earnings test. The agent explained that they look at your "work pattern intent" - essentially, did you retire from your career and now work sporadically, or are you continuously employed with predictable seasonal variations? For tax season work like yours, this should clearly fall into the "continuous seasonal employment" category since tax preparation has well-established busy periods that repeat annually. Make sure to emphasize this predictable, cyclical nature when you visit your local office. One practical tip: I brought a simple calendar showing my typical work schedule throughout the year, which helped the agent visualize that this wasn't random work but rather consistent employment with known seasonal peaks. Having that visual representation seemed to make the classification much clearer for them. You should be fine with the annual limit as long as you get the proper classification documented upfront. Good luck with both your benefits application and the upcoming busy season!

I'm a newcomer here but have been researching this exact situation for my own upcoming retirement. After reading through all these experiences, I'm struck by how much the terminology you use with SSA seems to matter. The distinction between "continuous part-time employment with seasonal variation" versus "mid-year retirement" appears to completely change how they classify your case. What's particularly helpful is seeing the pattern in successful cases - those who visited their local SSA office in person, brought detailed monthly earnings projections, and emphasized the predictable seasonal nature of their work seemed to get the proper "annual test" classification. The visual aids like calendars showing typical seasonal patterns that Fatima mentioned sound really smart. For those still confused about the rules, it seems the key takeaway is that if you're working consistently throughout the year (even with varying monthly amounts), you should qualify for the annual earnings test rather than the monthly test. But given the conflicting experiences shared here, getting that properly documented in your SSA file upfront is absolutely critical. Thanks to everyone who shared their real-world experiences - this thread has been incredibly educational for someone just starting to navigate these waters!

As a newcomer to this community, I'm really grateful for all the detailed experiences everyone has shared! I'm in a very similar situation - planning to start benefits soon while working part-time with seasonal income variations. What I'm taking away from this discussion is that the key seems to be getting SSA to properly classify your work pattern as "continuous seasonal employment" rather than "sporadic retirement work." The success stories all seem to involve in-person visits to local SSA offices with detailed documentation showing the predictable, cyclical nature of the work. I'm definitely planning to follow the strategies that worked for Tyler, Fatima, and others - bringing a month-by-month earnings breakdown, a visual calendar showing the seasonal pattern, and emphasizing that this is legitimate continuous employment with predictable busy periods, not random income. The fact that multiple people got different answers from phone representatives but found clarity through in-person visits really reinforces that face-to-face communication is the way to go for these nuanced situations. Thanks to everyone for sharing your real-world experiences - this thread has been more helpful than hours of trying to decode official SSA guidance!

As someone who recently went through this exact process, I wanted to add my experience to help clarify the confusion in this thread. I started my SS benefits in March 2024 while working part-time at a tax preparation service with the same seasonal pattern you're describing. The key insight from my SSA visit was that they have two different classifications: "grace year retirement" (where monthly limits apply) versus "continuous part-time employment" (where only annual limits apply). Since you're working consistently throughout the year with seasonal variations, you should qualify for the annual test. However, given all the conflicting experiences shared here, I'd strongly recommend visiting your local SSA office in person before February. Bring a detailed month-by-month earnings projection and emphasize that this is continuous seasonal employment, not sporadic work. Having them properly code your situation as "continuous part-time employment with seasonal variation" in their system will prevent the issues others have faced. One additional tip specific to family businesses: make sure all your employment documentation is properly formalized (contracts, payroll records, etc.) since SSA may scrutinize family employment arrangements more closely. Better to have everything documented upfront than deal with questions later. You should be fine working those busy tax season hours as long as your annual total stays under $23,400 and SSA has the right classification in your file!

As a newcomer to this community, I've been following this entire discussion with great interest since I'm facing a nearly identical situation - planning to start SS benefits next year while continuing part-time work with seasonal income fluctuations. What's really struck me is how much clarity has emerged from everyone sharing their real-world experiences. The distinction between "grace year retirement" (monthly limits) and "continuous part-time employment" (annual limits only) that Elijah explained seems to be the crucial factor that determines how SSA handles your case. The consensus from successful cases appears to be: 1) Visit your local SSA office in person rather than relying on phone calls, 2) Bring detailed month-by-month earnings projections, 3) Emphasize the predictable, continuous nature of seasonal work, and 4) Get the proper classification documented in your file upfront. For Yara specifically, given that you're working at your daughter's accounting firm during tax season, this clearly fits the "continuous seasonal employment" pattern rather than sporadic retirement work. The visual calendar idea and employment documentation suggestions from others seem particularly relevant for your situation. Thanks to everyone who shared both their successes and challenges - this kind of community knowledge-sharing is invaluable when official guidance can be so confusing!