Will paying back Social Security due to earnings limit increase my monthly SS benefit?

Yes, it should affect your monthly benefit amount. When you pay back benefits due to the earnings test, those months are essentially treated as if you hadn't received benefits. This can lead to a recalculation when you reach FRA that results in a higher monthly benefit going forward. The SSA calls this an "adjustment to the reduction factor" (ARF). Basically, they'll recalculate as if you claimed benefits later than you actually did. For example, if you paid back the equivalent of 7 months of benefits, they might recalculate your benefit as if you started at 63 and 7 months instead of 63. This should lead to a higher monthly payment once you reach your FRA.

i went thru the same thing. had to give back like 12k cause i was still working. dont worry they will fix ur money when u hit full retirement. mine went up like $180 a month after they did the math. u dont need to do anything they do it automatic

This earnings limit thing is honestly ridiculous. I don't understand why the government PUNISHES people for working while collecting SS that THEY PAID INTO their whole lives!!!! It's our money! If I were you I'd just quit working until FRA. The whole system is designed to keep you poor and dependent. My brother-in-law went through this and spent HOURS on the phone with SSA trying to get answers and kept getting different information from every person.

What month is your birthday? also are you still working now? when exactly will you reach FRA? these details matter for the calculation

I went through exactly this situation. After reaching FRA, the SSA automatically recalculated my benefit and I saw an increase of about $225/month. Based on your numbers, I'm guessing you've had roughly 7-8 months' worth of benefits withheld. The general rule is that for every 9 months of benefits you lose to the earnings test, your monthly payment increases by about 5% after FRA. This recalculation should happen automatically in the months after you reach FRA, but I recommend calling about 3 months after your FRA to verify it's been done. Sometimes the adjustment gets missed. And remember - any additional earnings may also increase your benefit amount if they're higher than previous years used in your calculation. So working might help you in two ways.

My situation was similar but I had to pay back WAY more - almost $15k! The stress of dealing with this nearly gave me a heart attack. I still don't understand why they can't just adjust the amount monthly instead of sending the money and then demanding it back later. Makes no sense.

Quick question for everyone - I thought the earnings limit was around $21,000 for 2024 before they start taking $1 for every $2 you earn? How much are you earning that you had to pay back nearly $10k each year? Seems like you must be making quite a bit still?

Trying to reach social security to discuss this is a nightmare these days. I had to try for WEEKS to get through to someone who actually understood the ARF process after I reached my FRA last year.

u said ur making $35k at your part time job... have u thought about just not working at all for a few months before FRA? might be easier than dealing with all this SSA nonsense honestly

One important thing to note - when you reach FRA, the earnings test no longer applies at all. You can earn any amount without affecting your benefits. So if you're close to your FRA (July 2026), you might want to consider whether it's worth potentially changing your work situation for a relatively short period. Also, the ARF recalculation is designed to eventually pay you back the equivalent of what was withheld, just spread out over your lifetime. So in theory, you should come out roughly even in the long run.

Just wanted to add my perspective as someone who went through this recently. I had a similar situation where I took early retirement at 62 and kept working part-time. Had to pay back about $8,000 over two years due to earnings limit. The good news is that @Jasmine Hancock is right about the ARF adjustment - it does happen and it's designed to make you whole eventually. In my case, my monthly benefit increased by about $150 after I reached FRA. One thing I'd suggest is keeping really good records of exactly how much you've paid back and when. I created a simple spreadsheet tracking all the amounts SSA withheld. This made it much easier when I called them after my FRA to verify the recalculation was done correctly. Also, since you're enjoying your work and only have about a year and a half until your FRA, I'd personally stick with it. The combination of the ARF increase plus any potential benefit from higher recent earnings years could work in your favor long-term. Plus, staying active and engaged through work has benefits beyond just the financial aspect!