Will exceeding Social Security earnings limit affect my family's benefits or just mine?

When u go over the earnings limit they take back ALL benefits on your record not just yours. This happened to my brother last year. He was shocked when they reduced his kids payments too. The SSA doesn't explain this clearly at all!

Same thing happened to my neighbor!!! They took back like $1 for every $2 he earned over the limit FROM EVERYONE on his record. It's ridiculous how they don't make this clear when you apply.

This is a common area of confusion. The correct answer is that the earnings test DOES affect all benefits paid on your record - not just your own. When you exceed the annual earnings limit, SSA applies a reduction formula to the total family benefits, not just to the worker's benefit. Specifically, they'll withhold $1 in benefits for every $2 you earn above the limit (which will be approximately $22,320 for 2025, though the official figure hasn't been announced yet). This withholding is applied proportionally across all benefits paid on your record, including your wife's child-in-care benefits and your children's benefits. The logic behind this policy is that all these auxiliary benefits are derived from your work record, so if your benefits are affected by your continued work, then benefits derived from yours are similarly affected. You might want to carefully calculate whether your additional earnings will actually improve your family's total financial situation after accounting for these benefit reductions.

No, unfortunately that strategy wouldn't work. The earnings test is based on the worker's earnings and age, regardless of whether the worker is actually receiving benefits. As long as you're under FRA and earning above the limit, any benefits paid on your record (even if you're not collecting yourself) would still be subject to reduction. Two options to consider: 1. Limit your earnings to stay under the annual threshold 2. Wait until you reach your Full Retirement Age (FRA) to claim, as the earnings test no longer applies at or after FRA One additional note: Any benefits withheld due to the earnings test aren't permanently lost. Once you reach FRA, your benefit will be recalculated to give you credit for the months in which benefits were withheld, resulting in a higher monthly payment going forward.

I WISH I HAD KNOWN THIS SOONER!!! We got hit with this exact issue last year and had to pay back THOUSANDS in family benefits because I kept working after starting SS at 62. The worst part was finding out after the fact. SSA sent us a notice that we owed money back from the whole family not just me! The rep I talked to when I applied NEVER mentioned this would affect my wife and kids too!!!! The whole system is designed to trick people!!!

I see a lot of confusion in this thread, which is understandable since this is one of the more complex Social Security rules. Section 203(f) of the Social Security Act and 20 CFR § 404.434 are clear that the earnings test applies to all benefits payable on the worker's record, not just the worker's own benefit. The calculation works like this: 1. Your excess earnings are calculated (earnings above $22,320 for 2025, estimated) 2. Benefits are withheld at $1 for every $2 of excess earnings 3. The withholding is applied PROPORTIONALLY across all benefits payable on your record Example: If your excess earnings would cause a $600/month reduction, and total family benefits are $3,000/month with your benefit being $1,500/month and family members receiving $1,500/month collectively, then your benefit would be reduced by $300/month and their collective benefits by $300/month. As others mentioned, you'll receive credit for these withheld benefits once you reach FRA, but that doesn't help with current cash flow needs. One important note: The earnings test only counts earned income (wages, self-employment). Unearned income like investments, pensions, or rental income doesn't count against you.

That's correct. If his earnings stay below the annual limit (approximately $22,320 for 2025), then no benefits would be withheld due to the earnings test. The family would receive their full entitled benefits. Just keep in mind that in the year you first retire, Social Security may apply a monthly earnings test rather than an annual one, which gives you more flexibility in the first year.

If anyone needs to contact SSA about this, I'd recommend using Claimyr. I was trying to sort out a similar benefits issue last month and couldn't get through to SSA for days. With Claimyr (claimyr.com) I got through to a real person in under 30 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU They basically call SSA for you and connect you when they reach a representative. Saved me so much frustration after spending literally days trying to get through on my own!

Yes, it really worked for me! I was skeptical too, but after spending hours listening to busy signals and getting disconnected, I was desperate. They got me through to a representative who was able to explain my husband's benefits situation clearly. Definitely worth it for the time saved alone.

To address your follow-up question about the monthly earnings test: Yes, in your first year of retirement, SSA applies what's called the "Monthly Earnings Test" instead of the annual test. This means that regardless of your total annual earnings, you can receive full benefits for any month in which you earn below the monthly limit (approximately $1,860 in 2025) and don't perform substantial services in self-employment. So if you retire mid-year, SSA won't count your pre-retirement earnings against you for the months after you've retired, as long as your monthly earnings stay below the limit for those months. This special rule only applies for one year (usually your first year of retirement).

my sister tried that and they still counted her january-april income!!! something about how she didnt fully retire because she got a small 1099 for some consulting in october. be careful with those "special rules" because SSA finds ways to not apply them!!!

Thank you everyone for the helpful responses. I'm going to reconsider my retirement timing based on this information. Seems like I have three options: 1. Keep working but limit my earnings to stay under the annual threshold 2. Wait until FRA to start collecting any benefits 3. Do a clean retirement mid-2025 and rely on the monthly earnings test I need to talk with my financial advisor about which makes the most sense for our situation. I really appreciate all the information and personal experiences shared here.