Will Social Security earnings limit deductions be repaid after reaching FRA?
I'm getting ready to start my Social Security retirement benefits on March 1st this year, but still need to work part-time. I've heard there's this earnings limit where if I make more than $1,950 per month before reaching my full retirement age, Social Security will withhold some benefits during those months. What's confusing me is whether I'll ever get that withheld money back? Once I hit 67 (my full retirement age), will SSA adjust my benefits to give me back what was withheld, or is that money just gone forever? Anyone gone through this process recently? Thanks for any help clarifying this!
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Jibriel Kohn
Yes, you will get that money back, but not as a lump sum payment. After you reach your Full Retirement Age (FRA), the SSA will recalculate your monthly benefit amount to credit you for the months when benefits were withheld due to excess earnings. This results in a permanent increase to your monthly benefit going forward. So you'll eventually recoup those withheld amounts through slightly higher monthly payments for the rest of your life after FRA.
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Joshua Hellan
•Thank you so much! That's a relief to hear. Do you know roughly how much the increase might be? Is it spread out over many years?
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Edison Estevez
im pretty sure u just lose it. my brother worked while collecting early and they took like $480 one month and he never saw a penny of it again
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Jibriel Kohn
•Your brother may want to contact SSA directly. The recalculation happens automatically at FRA, but it's a slight increase to his monthly amount that might not be obvious without comparing pre-FRA and post-FRA benefit statements. It's definitely not lost forever according to SSA rules.
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Emily Nguyen-Smith
I went through this exact situation last year! It's such a relief when you finally hit FRA and don't have to worry about the earnings limit anymore. And yes, they do adjust your benefit amount afterward.
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James Johnson
I'd like to expand on the previous responses with some specific details. When you reach your Full Retirement Age, SSA will automatically recalculate your benefit amount. This recalculation essentially gives you credit for the months when you received reduced or no benefits due to the earnings test. The adjustment works because SSA treats those months as if you hadn't actually applied for benefits during that time. This means your early retirement reduction factor gets adjusted. If you started at 62 but had 6 months of fully withheld benefits before FRA, they'll recalculate as if you started at 62.5, which means a slightly higher monthly amount for life. For 2025, the annual earnings limit is $23,400 ($1,950 per month), and SSA withholds $1 in benefits for every $2 earned over the limit. Keep in mind that in the calendar year you reach FRA, there's a higher limit that applies until the month you reach FRA, and the withholding rate changes to $1 for every $3.
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Joshua Hellan
•This is incredibly helpful, thank you! So if I understand correctly, if I have benefits withheld for 12 months between now and my FRA at 67, they'll recalculate as if I started receiving benefits 12 months later than I actually did? That would definitely increase my monthly amount. I guess I'm making the right choice by working a bit longer even with this temporary reduction.
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Sophia Rodriguez
The whole earnings limit thing is RIDICULOUS!! We paid into the system our whole lives and then they PUNISH us for continuing to work?! And that recalculation nonsense is so minimal compared to what they take from you. The entire system is designed to confuse people. And good luck getting anyone at SSA to explain it clearly - I've been trying to talk to someone for WEEKS about my similar situation but can't get through their phone system!!
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Mia Green
•I feel your pain trying to reach SSA! Their phone lines are always jammed. I started using Claimyr (claimyr.com) last month when I had questions about my earnings limit. They got me connected to a real SSA agent in about 20 minutes instead of the usual hours of waiting and disconnects. There's a video showing how it works at https://youtu.be/Z-BRbJw3puU if you're interested. It really saved me from the frustration you're describing.
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Sophia Rodriguez
•Thanks for the suggestion. At this point I'll try anything to get through to an actual person!
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Emma Bianchi
One thing nobody mentioned - the earnings limit only applies to wages or self-employment income. If you have investment income, rental property income, pension payments, or other non-work income, that doesn't count toward the earnings limit. Only the money you actively earn from working matters for this rule.
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Emily Nguyen-Smith
Also make sure you tell SSA ahead of time about your expected earnings! If you don't, they might find out later when your W-2 is filed and hit you with an overpayment notice, which is a huge headache to deal with.
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Edison Estevez
my aunt said she just worked under the table when she was collecting early SS lol
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Jibriel Kohn
•That's actually tax fraud and could result in serious penalties. Not worth the risk, especially since the benefit adjustment at FRA means you'll eventually get that money anyway in the form of higher payments.
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Mia Green
Last year I was so confused about whether I should even start SS early because of this exact earnings limit issue. I kept going back and forth. Finally decided to wait until FRA to avoid the headache entirely. For some people though, getting those benefits early even with reductions makes more financial sense.
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Joshua Hellan
•I considered waiting too, but I need some of the income now and figure I can handle the temporary reductions. I'm just glad to learn they eventually adjust the benefits later. Makes the decision easier.
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Emily Nguyen-Smith
Does anyone know if they apply the earnings test monthly or annually? Like if I earn a big bonus one month but little the rest of the year?
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James Johnson
•The earnings test is actually applied annually, but Social Security pays benefits monthly. For the first year you receive benefits, they may ask about your expected monthly earnings and apply the test monthly. After that first year, they typically do an annual reconciliation based on your actual earnings reported to the IRS. If you have variable income with a large bonus, you might want to contact SSA directly to discuss how they'll handle your specific situation.
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