Will SS withhold benefits for income over limit when filing at 63 with $45k earnings in 2025?

SS will take back $1 for every $2 u earn over the limit. Limit will be around $23k for 2025 so ur gonna lose some money for sure

Are you SURE you want to file at 63??? Every year you wait, your benefit increases by like 8%. I waited until 70 and my checks are HUGE compared to what they would have been. Unless you absolutely need the money right now, you should really reconsider this decision! The earnings test is just another reason to wait!!!

Here's what will happen with your specific situation: 1. For 2025, the annual earnings limit will likely be around $23,200 for someone under FRA (Full Retirement Age). 2. Since you expect to earn $45,000, you'll exceed that limit by approximately $21,800. 3. SSA will withhold $1 for every $2 you earn over the limit, so approximately $10,900 would be withheld from your benefits. 4. They don't reduce each check - instead, they'll withhold entire monthly payments until they've covered the amount that needs to be withheld. So if your monthly benefit is $2,000, they might withhold about 5-6 months of payments throughout the year. 5. This isn't a permanent reduction. Once you reach your Full Retirement Age, SSA will recalculate your benefit to credit you for the months when benefits were withheld. You should definitely report your expected earnings when you file. You can adjust this estimate later if needed. If you don't report it, you might receive an overpayment that you'll have to pay back later.

One more important thing to consider - even though you'll have benefits withheld while working, you're still getting the early filing reduction permanently. Filing at 63 means you're taking approximately a 25% permanent reduction to your benefit amount compared to waiting until your FRA (which is probably 67 if you're 63 now). The withholding due to excess earnings doesn't change that early filing reduction. However, there is a positive aspect: if you continue working, you might increase your benefit amount if these are high-earning years for your lifetime earnings record. SSA calculates your benefit on your highest 35 years of indexed earnings.

I went through something similar last year. Filed at 62 while still working part-time making about $30k. SS didn't pay me for the first 4 months of the year, then started sending checks after that. It was actually kind of nice getting a lump sum mid-year! One thing that really helped me was using Claimyr to get through to an actual SSA agent on the phone (claimyr.com). I had so many questions about exactly how the withholding would work, and the website wasn't clear. Their video demo (https://youtu.be/Z-BRbJw3puU) shows how it works - basically gets you past the hold times so you can talk to someone who can explain your specific situation. The agent walked me through exactly what to expect with my payments for the year.

dont forget that ur employer still takes out the ss tax from ur paycheck even if ur already collecting!!! double whammy!!! the system is so messed up

I'm going through exactly this situation right now. I filed for retirement in January 2025, and I'm also 63. I told them I expected to make about $35,000 this year from my part-time job. They explained that they wouldn't send me any payments for the first four months of the year, and then I'd start receiving my full monthly amount after that. One thing I learned - if your income ends up being different than what you estimated, they'll adjust things later. I ended up getting laid off unexpectedly last month, so now I'll earn less than I thought. I called SSA and they said they'll pay me for some of those earlier months once they verify my actual earnings. Definitely report your expected earnings when you file. It's way better to have them withhold correctly from the start than to deal with an overpayment notice later!

they really make it complicated on purpose i think. why cant they just reduce each check by a little bit instead of making u go months with nothing??

I still think you're making a HUGE mistake by filing early!!! You're locking in a 25% PERMANENT REDUCTION to your benefits FOR LIFE just to get some money a few years earlier. Plus all these headaches with the earnings test. Please please PLEASE reconsider this decision before you file!!! Once you file, you only have 12 months to withdraw your application!!!

To answer your original question directly: Yes, Social Security will calculate how much you're over the earnings limit ($45,000 - $23,200 = $21,800), determine the withholding amount ($21,800 ÷ 2 = $10,900), and withhold full monthly payments until that amount is covered. Then they'll resume paying your regular benefit. And yes, you should definitely tell them your expected earnings when you file in February. You can update this estimate if things change. This helps prevent overpayments that you'd have to repay later. When you reach your Full Retirement Age (likely 67), they'll recalculate your benefit and give you credit for the months when benefits were withheld. So while your benefit is permanently reduced for filing early, you do eventually get credit for those withheld months.