Will new 10% cap on Social Security earnings limit penalty apply to family benefits in 2025?

Yes, the new 10% limitation on benefit withholding will apply to your situation starting in 2025. This change was part of the Social Security Administration's efforts to reduce financial hardship from benefit withholding. The best way to handle this is to be proactive. Contact the SSA in December to report your estimated earnings for 2024, explaining that you'll be over the limit. Request that they begin the 10% withholding in January 2025. Make sure to keep documentation of this contact. Since you have children receiving benefits on your record, it's important to understand that the withholding applies to the total family benefit. SSA follows proportional reduction rules when multiple beneficiaries are involved, so everyone's benefits might be reduced slightly rather than just yours. You can report your earnings through your my Social Security account online, by phone, or at your local office.

had similar thing happen to me last yr. went over by like $3000 and they took my WHOLE FEBUARY CHECK!!! didnt even warn me, just gone. with kids involved thats really rough. hope the 10% thing is real bc taking a whole check is CRAZY when ur trying to feed kids!!

The 10% cap is definitely real and starts January 2025. I've been dealing with SSA for decades helping people with these issues, and this is one of the most positive changes they've made in years. However, you CANNOT leave this to chance. SSA systems are not always great at implementing new policies immediately. Here's my advice: 1. Report your excess earnings in December through your my Social Security account 2. ALSO call them directly - wait times are terrible but it's worth it 3. Request the 10% withholding starting January 4. Get a confirmation number or name of who you spoke with 5. Follow up in January to verify it was processed correctly Keep in mind that since you have children's benefits involved, the proportional reduction rules apply - they'll take some from each benefit payment, not just yours. Lastly, watch your earnings carefully in 2025. The limit will increase slightly (probably to around $23,000), but going over again will add to what you owe.

I had to deal with this same situation last year when I went back to work part-time. Those SSA phone lines are impossible - called for 3 days straight and kept getting disconnected after waiting 2+ hours each time. I finally got through using Claimyr (claimyr.com) - they hold your place in line and call you when an agent is available. Saved me hours of frustration. There's a demo video at https://youtu.be/Z-BRbJw3puU showing how it works. When I finally talked to an agent, they were actually helpful. They set up a payment plan for what I owed instead of taking a whole check at once. But definitely call BEFORE you go over the limit - much easier to handle proactively.

I thought if u were gettin benefits for kids too they couldn't take ANY money?? My neighbor told me that. This is all so confusing lol

THE SOCIAL SECURITY ADMIN IS JUST LOOKING FOR WAYS TO TAKE OUR MONEY!!! I went through this EXACT thing last year and they took OVER $2000 from me because I worked a little extra during the holidays. They don't care if you have kids to feed or bills to pay!!! And now they're saying they'll "only" take 10%?? How generous of them to ONLY take 10% OF OUR OWN MONEY that we EARNED by working and paying into the system for DECADES!!! This whole earnings limit is a SCAM to keep seniors poor and dependent. Why should they punish us for working??? The whole system needs to be torn down and rebuilt!!

one thing nobody mentioned - make sure u know what counts as "earnings"! i got burned cuz i didn't realize some income doesn't count toward the limit. like if u get money from investments or rental property or something, that DOESN'T count! only wages and self-employment income does. woulda been nice if someone told me that before lol

My sister went through this exact same thing! She was so worried but then when January came they only took like 10% each month which was WAYYYY better than losing a whole check at once. But yes you def have to CALL THEM and tell them what's happening. Don't just rely on their systems figuring it out correctly lol that's asking for trouble!! Good luck with it all!!

One more thing to consider - have you looked into whether an Adjustment to the Monthly Earnings Test might help in your situation? If your earnings were concentrated in those months when you had to cover for your coworker, and you don't expect to earn over the monthly limit in the remaining months of the year, you might qualify for full benefits in those later months. For example, if you earned $5,000 per month for 3 months (well over the monthly limit) but then earn under the monthly limit for the rest of the year, SSA might only withhold benefits for those 3 months rather than reducing benefits based on the annual total. This is a bit complex to navigate, but worth discussing when you call SSA. Many representatives aren't familiar with this provision, so you might need to specifically ask about the "monthly earnings test" or speak with a technical expert.