Social Security survivor benefits with January earnings over monthly limit - will I be penalized?

The earnings test counts for the entire month in which you turn 60, so January's earnings will count against your annual limit. Since $4,000 exceeds the monthly limit of $1,950, you'll likely see a reduction in benefits. However, SSA typically only withholds full months of benefits, so they might withhold your February payment entirely rather than reduce it. The good news is that once you reach your full retirement age (FRA), your benefit will be recalculated to credit you for months where benefits were withheld. So you'll eventually get that money back in the form of a higher monthly benefit when you reach FRA.

Did u apply for survivors already or r u still waiting? my husband passed last yr & i was told I had to wait until my exact birthday before I could even submit paperwork.

I went through this exact situation last year! The earnings limit is BRUTAL when you're working. What nobody told me was that the annual limit applies regardless of when your benefits start. So your January earnings DO count even though you weren't receiving benefits yet. In my case, they withheld 2 FULL MONTHS of payments because I went over by about $3,600 early in the year. They didn't tell me in advance either - just got a letter after the fact saying "we're not paying you for March and April due to excess earnings." SUPER frustrating!

The month you turn 60 counts as a full month for the earnings test, even if your birthday is on the last day. Its stupid but thats how they do it. If you made $4000 in January thats $2050 over the limit. They'll probably take back a full month of benefits from you.

To clarify some confusion here: Yes, January earnings count toward the annual earnings test since you turned 60 that month. However, there's an important distinction between the monthly and annual earnings tests. The annual test applies if you'll exceed $23,400 for the entire year. Each $2 over that amount reduces benefits by $1. The monthly test only applies in the first year you receive benefits. Under this test, you can receive full benefits for any month you earn under $1,950 AND don't perform substantial services (generally meaning part-time work). Since you earned $4,000 in January, that month would fail the monthly test. But starting in February, if you truly stay under $1,950 per month AND work part-time, you should receive your full benefit regardless of January's earnings. I suggest calling SSA directly to confirm how they'll handle your specific situation. Unfortunately, reaching a representative can take hours of waiting.

When I dealt with this calling SSA was impossible - hours on hold only to get disconnected. I finally used Claimyr.com and got through in about 15 minutes. They have a service that basically waits on hold for you then calls you when a rep comes on the line. Saved me so much frustration! They have a video showing how it works: https://youtu.be/Z-BRbJw3puU When I did get through, the rep explained that if I stayed under the monthly limit for the rest of the year after starting benefits, they would only count the months I was over. Much better than losing benefits based on annual income.

guys dont forget if ur working parttime u still gotta report ur wages to ssa every month!!! my cousin didnt do this and got hit with a huge overpayment notice!!!

@Original poster - another thing to watch for is that when SSA says "countable earnings" they ONLY mean gross wages or net self-employment. They don't count investment income, pension payments, rental income, or capital gains toward the earnings test limit. A lot of people don't realize this and report too much income!

After reviewing everything more carefully, here's what will likely happen in your case: 1. January counts as a month where you exceeded the limit ($4,000 vs $1,950) 2. If you stay under $1,950 for all remaining months of 2025 AND work part-time, you'll only have January counted against you 3. SSA will likely withhold your February payment (the first one) to account for the January excess 4. Starting March, as long as you stay under the monthly limit, you should receive regular payments But as others have suggested, it's essential to confirm this with SSA directly regarding your specific case.

EVERYBODY'S SITUATION IS DIFFERENT!! My friend and I both started survivors benefits within a month of each other and SSA treated our earnings completely differently. Don't assume what happened to someone else will happen to you.