Starting Social Security early at 65 - questions about 1099 work and earnings limits
I just started collecting Social Security retirement benefits as of January 2025, even though I'm only 65 and my Full Retirement Age is 67 and 2 months. Now I've been offered a part-time gig as a product demonstrator at weekend conventions, but it's 1099 work (self-employed). The monthly pay would keep me under the earnings limit (around $1,850/month I think?), but I'm completely confused about how this works with early SS benefits. Do I need to report this income to SSA even if I'm careful to stay under the monthly limit? Also, since it's 1099 work, how do taxes work? Do I need to make estimated tax payments to the IRS? And what about Social Security taxes - do I pay both the employee AND employer portions now? I've never been self-employed before and don't want to mess up my benefits or get hit with penalties. The job only involves working 2-3 trade shows monthly, but I want to make sure I understand all the implications before I accept. (And yes, I'll make sure my total income stays below the threshold that would trigger IRMAA Medicare premium increases!
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Luca Conti
Yes, you absolutely need to report this income to SSA, even if you stay under the monthly earnings limit. Self-employment income counts differently than regular wages. For 2025, you can earn up to $22,320 annually ($1,860 monthly) without penalty before FRA, but with 1099 work you need to consider a few important things: 1. For self-employment, SSA counts your NET earnings (income minus business expenses), not gross income 2. You'll need to pay self-employment tax (15.3% - which is both employee and employer portions of Social Security and Medicare taxes) 3. You should make quarterly estimated tax payments to avoid penalties I recommend keeping detailed records of all business expenses related to these trade shows - travel, meals, supplies, etc., as these can reduce your countable income for the earnings test.
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Zara Ahmed
•Thank you for the clear explanation! I didn't realize they look at net earnings rather than gross - that's helpful. About how often should I be reporting this income to SSA? Do I need to call them monthly, or is it something I just handle at tax time?
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Nia Johnson
i had almost the same situation last year. took SS at 65 and then got a chance to do some consulting work. just make sure you track EVERYTHING and keep receipts. the self employment tax is a pain but you def need to pay quarterly or you'll get hit with penalties!! ask me how i know lol
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CyberNinja
•The IRS always gets their pound of flesh, don't they??? The whole system seems DESIGNED to be confusing. Self-employment tax is basically double what you'd pay as an employee - 15.3% instead of 7.65%. And then you still have to pay regular income tax on top of that! Dealing with Social Security is difficult enough without adding all these tax complications.
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Mateo Lopez
One important thing to understand is that SSA applies the earnings test differently for self-employment. They don't just look at how much you earn, but also how many HOURS you work. Even if you stay under the earnings limit, if you work more than 45 hours per month at your business, SSA may determine you're not actually retired and could withhold benefits. For your tax questions: 1. Yes, make quarterly estimated tax payments using Form 1040-ES 2. You'll pay self-employment tax (Schedule SE) which covers both the employee and employer portions of Social Security and Medicare taxes 3. Track business expenses on Schedule C to reduce your net earnings I recommend setting aside about 30% of your earnings for taxes (15.3% self-employment tax plus income tax).
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Zara Ahmed
•I had no idea about the 45 hours per month rule! That's really good to know. Fortunately, I won't be anywhere near that - these trade shows are just weekends, maybe 16-20 hours total per month. But I'll definitely keep track of my hours just to be safe. Thank you!
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Aisha Abdullah
my aunt got in trouble with this exact situation!! she thought she was fine because she made under the limit each month but she didn't realize you have to count the TOTAL for the year too, not just monthly. ended up owing money back to social security!
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Luca Conti
•That's a good point! The monthly earnings test only applies in your first year of retirement. After that, SSA applies an annual test. And if you exceed the annual limit, they take back $1 for every $2 you earn above the threshold. It's easy to accidentally go over if you're not carefully tracking everything.
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Ethan Davis
I went through something similar last year. Just wanted to share that getting through to Social Security to ask questions was nearly impossible - spent 3+ hours on hold multiple times and got disconnected. Finally used a service called Claimyr that got me through to an agent in about 20 minutes. Their site is claimyr.com and they have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent I spoke with confirmed I needed to report my estimated earnings for the year, and they explained how the earnings test would affect my benefits. It was actually a huge relief to get real answers instead of stressing about doing something wrong.
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Zara Ahmed
•Thanks for the tip! I've tried calling SSA twice already and gave up after 45+ minutes on hold. I'll check out that service - definitely worth it to get clear answers from an actual SSA rep instead of guessing.
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Yuki Tanaka
congrats on the new opportunity! just make sure you dont end up making so much that it messes with your ss benefits. i did some bookkeeping work after i retired and it was fine but the paper work with 1099s is a pain. you'll need to file schedule C and SE with ur taxes.
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Nia Johnson
•yeah and don't forget you can deduct mileage to and from the trade shows! thats a big one people miss. 67 cents per mile for 2025 adds up fast if your driving to these events
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CyberNinja
Am I the only one who thinks it's RIDICULOUS that SSA penalizes people for working?? I mean, we paid into the system our whole lives, and now they dock our benefits if we try to earn a little extra money?? The whole system is designed to keep seniors poor. And don't get me started on how they expect people to understand all these complicated rules when their own employees give different answers depending on who you talk to!!! Sorry for the rant, but this stuff makes my blood boil. Good luck with your situation - just be prepared for conflicting information no matter who you ask.
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Mateo Lopez
•While I understand your frustration, the earnings limit only applies before you reach Full Retirement Age. The rule exists because Social Security was designed as retirement insurance, not supplemental income for people who are still working. Once you reach your FRA, you can earn unlimited amounts without any reduction in benefits. The good news is that if benefits are withheld due to excess earnings, you'll receive a recalculation when you reach FRA that will increase your monthly benefit to account for the months benefits were withheld.
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Zara Ahmed
Thanks everyone for all the helpful advice! This is exactly what I needed. I'll definitely: 1. Track all my work hours and keep well under 45/month 2. Keep excellent records of all business expenses 3. Set aside 30% for taxes and make quarterly payments 4. Report my estimated earnings to SSA And I'll check out that Claimyr service to get specific guidance from SSA about my situation. The trade show job pays $300-$400 per event, so even doing 2-3 per month I should stay well below the annual limit. I just wanted to make sure I understood all the tax implications before jumping in!
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Luca Conti
•That sounds like a solid plan! One last tip - you might want to consider opening a separate bank account just for your self-employment income. It makes tracking your business finances much easier at tax time. Best of luck with your new position!
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