Starting Social Security early at 65 - questions about 1099 work and earnings limits

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.

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

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).

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!

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.

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.

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.

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!

Great question! I went through something very similar when I started collecting at 62 and then picked up some freelance work. A few additional things to keep in mind: Since you're doing product demonstrations, you might be able to deduct things like demonstration supplies, promotional materials, or even clothing if it's specifically required for the job. Also, if you're staying in hotels for these weekend conventions, those travel expenses can really add up as deductions. One thing that caught me off guard was that Social Security counts your net self-employment income for the earnings test, but the IRS requires you to pay self-employment tax on 92.35% of your net earnings (they give you a small deduction). It's a weird quirk in the system but worth knowing about. Also, since you're just starting in 2025, you get to use the monthly earnings test this year instead of the annual test, which can be more forgiving if your income varies month to month. Just make sure you're not going over that $1,860 monthly limit in any single month.

Welcome to the community! I see you're navigating the same waters many of us have been through. Based on what you've shared, it sounds like you have a good grasp on the key points already. Just to add a bit more clarity on the tax side - yes, you can absolutely deduct both mileage AND hotel stays for business travel. Keep receipts for everything! For the mileage, you can either deduct actual car expenses (gas, maintenance, etc.) OR use the standard mileage rate (67 cents per mile for 2025), but not both. Most people find the standard rate easier to track. One thing I learned the hard way - if you're demonstrating products that you need to purchase for the demos, those are legitimate business expenses too. Even if you get to keep some of the products afterward, the portion used for business purposes is deductible. Also, don't forget to report your estimated self-employment earnings to SSA using Form SSA-7011-F4. You can submit it online through your my Social Security account, which is much easier than trying to get through on the phone. They want to know your estimated annual net earnings so they can adjust your monthly benefits if needed. The fact that you're being proactive about understanding all this before you start puts you way ahead of most people. Good luck with the new gig!

Just wanted to chime in with one more important consideration - make sure you understand how the earnings test works in your birth month and the month you start receiving benefits. Since you started collecting in January 2025, you'll want to be extra careful about your earnings in January specifically. Also, I'd recommend downloading the SSA publication "How Work Affects Your Benefits" (Publication No. 05-10069) from their website. It breaks down all the rules for working while receiving early retirement benefits, including special situations like self-employment. One last tip from my own experience - consider getting a tax professional who specializes in self-employment and Social Security issues for at least your first year. The cost of their services is also a deductible business expense, and they can help you set up good record-keeping systems from the start. It's much easier to do it right from the beginning than to try to sort everything out at tax time!

Welcome to the community! Your situation sounds very manageable, and you're smart to research everything upfront. I went through something similar when I started collecting at 64 and then picked up some part-time consulting work. A few practical tips from my experience: 1. Open a separate business checking account for your 1099 income - it makes tracking so much easier and looks more professional if you ever get audited 2. Use a mileage tracking app on your phone for business travel - I use MileIQ but there are several good free options 3. Take photos of all your receipts and store them in a cloud folder organized by month Since you're doing product demonstrations, you might also be able to deduct things like professional development courses, industry publications, or networking events related to your field. The IRS allows "ordinary and necessary" business expenses, which can be pretty broad for demonstration work. One thing to watch out for - make sure the companies hiring you are actually treating you as an independent contractor and not an employee. If they're controlling how you do the work too much, the IRS might reclassify you, which could affect your tax situation. Good luck with the trade shows! It sounds like a fun way to stay active in retirement while staying within the earnings limits.