Went $700 over Social Security earnings limit - will they find out through tax return?
I'm 63 and started taking SS benefits early last year. I've been tracking my income pretty carefully because I know there's an earnings limit, but it looks like I might go about $700 over the annual limit by December. I thought the 2025 limit was $22,400 for early retirees like me. I'm not sure how Social Security will know about this overage - will they find out when we file our tax return next year? And if they do notice, will they just deduct that amount from my future payments? I've heard they take back $1 for every $2 you earn over the limit, so would that mean they'd withhold $350 from my benefits? Just trying to understand the process and avoid any surprises.
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Amina Sy
they will catch it on taxes dont worry. happend to me last yr & they just sent me a letter in May saying they woud withhold a bit each month til it was paid back. wasnt a big deal just wish theyd told me sooner
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Paolo Rizzo
•Thanks for sharing your experience! Do you remember how much they withheld each month? Did you have to respond to their letter or did they just automatically adjust your payments?
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Oliver Fischer
The Social Security Administration uses IRS data to verify earnings, so yes, they'll identify the overage when you file your taxes. For 2025, the earnings limit is indeed $22,400 for beneficiaries under full retirement age. Since you exceeded by $700, they'll withhold $350 (as you correctly calculated - $1 for every $2 over). They typically don't take it all at once. They'll notify you first with a letter showing their calculations and proposed adjustment plan. Usually, they withhold from future monthly benefits until the overpayment is recovered. If the withholding would cause financial hardship, you can request a more manageable repayment schedule.
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Paolo Rizzo
•This is really helpful, thank you! So they'll send a notification before they start withholding anything. That makes me feel better. I was worried they might take a whole month's payment at once.
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Natasha Ivanova
Wait I thought the limit was HIGHER than that for 2025??? I swear I read somewhere it was going up to like $23,000 something. Are you sure you're actually over? Maybe check the SSA website again?
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Oliver Fischer
•You're thinking of the 2025 earnings limit for the year someone reaches Full Retirement Age, which is $59,520. But that higher limit only applies during the months before reaching FRA. For someone who is collecting benefits and remains under FRA for the entire year (like the original poster), the annual limit is $22,400 for 2025.
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NebulaNomad
i went through this exact thing!! honestly dont stress bout it, they took like $29 outta my check for a few months. they DO catch it through taxes and send u a letter. no biggie
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Paolo Rizzo
•That's reassuring to hear they spread it out into small amounts. Thanks for sharing your experience!
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Javier Garcia
If you're really concerned about handling this proactively, you could contact SSA directly and report the expected overage yourself. This sometimes helps avoid delays in processing. However, getting through to a representative can be frustrating. I've found that Claimyr helps bypass the long wait times when calling Social Security. You can see how it works in their video demo: https://youtu.be/Z-BRbJw3puU or check their website claimyr.com. Basically gets you to a real person without the hours of waiting. Might be worth it if you want to resolve this before tax time. But honestly, letting the process work through your tax filing is also fine—just be prepared for a small adjustment to your benefits later in the year.
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Emma Taylor
•THANK YOU!! I tried calling SSA 5 TIMES last week about my own overpayment issue. Got disconnected EVERY single time after waiting 45+ minutes. Gonna try that Claimyr thing - watched the video and it looks legit. I'm so tired of wasting my entire morning on hold only to get cut off right when I finally reach someone!
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Malik Robinson
This earnings test thing is SUCH a scam! Why should the government penalize us for working?? We paid into the system our ENTIRE LIVES. They act like they're doing us a favor by giving us OUR OWN MONEY back! And then they have the nerve to take it away if we earn too much? Complete garbage policy.
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Paolo Rizzo
•I understand the frustration. I was pretty surprised by the earnings limit too when I first learned about it. At least it goes away once you reach full retirement age.
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Oliver Fischer
•It's important to remember that the money isn't permanently lost. When you reach your Full Retirement Age, SSA recalculates your benefit amount to credit you for the months when benefits were withheld. So you eventually get those withheld benefits back in the form of a higher monthly payment after FRA.
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NebulaNomad
btw just wondering - r u actually sure you'll be over? cuz some income doesnt count toward the limit. like if u had any vacation pay or sick leave from a job u had before claiming SS, that doesnt count against u
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Paolo Rizzo
•Hmm, that's interesting. All my income this year is from my part-time job that I started after claiming SS. I don't think I have any special types of income that would be excluded, but I'll double-check just to be sure.
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Amina Sy
my brother told me u can also just ask ur employer to hold ur last paycheck til january and then it counts for next year's limit not this years. not sure if thats legal but he did it and said it worked lol
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Oliver Fischer
•This wouldn't work. The earnings test is based on when the money is earned, not when it's paid. The SSA follows accrual-based accounting principles for the earnings test, so income is counted in the year it's earned regardless of when the paycheck is actually issued. Attempting to shift the payment date could potentially create issues.
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Paolo Rizzo
After reading everyone's responses, I'm feeling much better about this situation. It sounds like the process is pretty straightforward - they'll catch the overage through my tax return, send me a letter explaining the situation, and then make small deductions from my payments until the $350 is recovered. I'll make sure to budget for slightly smaller payments for a few months next year. Thank you all for sharing your experiences and expertise!
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