Social Security retirement application confusion - reporting income from self-employment in 2025

Report your husband's EXPECTED income for 2025. That's what the SSA cares about for the earnings test. Since he's below his Full Retirement Age (FRA), they'll apply the annual earnings limit which is approximately $22,320 for 2025. They'll deduct $1 from benefits for every $2 he earns above that limit. Make sure you're documenting how you arrived at the $23,000 estimate though - keep records of planned contracts, reduced hours, etc. If he ends up making significantly more, there could be an overpayment issue later.

when i filed last year they wanted to know my current income AND what i expected to make the next year. just tell them both numbers and explain hes cutting back his work. The SSA person told me they can adjust things later if you earn more or less than what you estimated

You need to report his EXPECTED earnings for 2025. Since he'll be 65 in June and planning to scale back work, here's what matters: 1) For months BEFORE he turns 65 in 2025, the monthly earnings limit is approximately $1,860 ($22,320 annual limit ÷ 12) 2) For months AFTER he turns 65 until his Full Retirement Age, a higher monthly limit applies (roughly $4,960 for 2025) If he's going to earn $23,000 spread evenly throughout 2025, that's about $1,917 monthly, which is only slightly above the limit for those first 5 months. SSA will withhold benefits for any month he exceeds the limit before reaching 65. Make sure to report it as NET self-employment income after business expenses but before tax deductions. And yes, keep documentation of your estimate methodology in case of questions later.

Everyone here giving advice about the earnings limit but NOBODY mentioned that self-employment income is counted DIFFERENTLY! The SSA doesn't just look at net income - they also consider "substantial services" for self-employed people. Even if your husband's INCOME goes down, if he's still providing significant services to the business (like 45+ hours/month), the SSA might count more toward the earnings test than just his net profit shows!!! This happened to my brother and he ended up with a HUGE overpayment notice! You need to document BOTH reduced income AND reduced time spent working in the business!!

my wife and i both went thru this last year. we put down what we thought wed make but ended up making more. SS took back money later which was a PAIN. they do average it out over the year though.

Since your husband is self-employed and planning to scale back, here's exactly what you should do: 1. Report his EXPECTED 2025 income as the main figure on the application 2. In the remarks section (or in a follow-up contact), explain that he's transitioning from full-time self-employment ($48K in 2024) to part-time work ($23K estimated for 2025) 3. Keep documentation of how business operations will be reduced (fewer contracts, shorter work days, etc.) One important note: If he's 65 in June 2025, his first 5 months of 2025 will use the lower earnings limit (~$1,860/month), but the month he turns 65 and after will use the higher limit (~$4,960/month). So if he can schedule more of his work for after June, it would be beneficial. Also, just be aware that trying to reach SSA by phone to discuss these details can be incredibly frustrating - hours of hold times and frequently disconnected calls. I recently discovered a service called Claimyr (claimyr.com) that got me connected to an agent in under 20 minutes. They have a video demo at https://youtu.be/Z-BRbJw3puU showing how it works. Saved me so much time when I needed to explain my complicated self-employment situation.

Doesn't this all depend on if he's at full retirement age? My neighbor just retired at 67 and he still works part time with no penalty at all on his SS check.

why doesnt he just wait until hes at full retirement age to apply? then he can make whatever $ he wants with no penalties

Just wanted to say thx for asking this question, im in almost the same boat (self employed, turning 65 next yr) and was confused about the same thing!