Can I Collect Social Security and Still Work?

Collecting Social Security benefits while continuing to work is a common consideration for many individuals approaching retirement. It is generally possible to receive Social Security payments alongside earned income, but specific rules and limitations apply depending on your age and the amount you earn. The Social Security Administration (SSA) has guidelines that affect your benefit amount if you work, particularly before reaching your full retirement age. These rules also cover how your benefits might be taxed and the procedures for reporting your earnings to the agency.

Working Before Full Retirement Age

When collecting Social Security retirement benefits before full retirement age (FRA) while working, earnings can reduce benefits. Full Retirement Age is determined by birth year; for those born in 1960 or later, it is 67. The Social Security Administration applies an earnings limit, and exceeding it results in a portion of benefits being withheld.

For 2025, if you are under your full retirement age for the entire year, the annual earnings limit is $23,400. For every $2 earned above this limit, $1 will be withheld from your Social Security benefits. For example, if you earn $25,400, which is $2,000 over the limit, your benefits would be reduced by $1,000.

A different, higher earnings limit applies in the year you reach your full retirement age. For 2025, this limit is $62,160, with a reduction rate of $1 in benefits for every $3 earned over the limit. Only earnings accumulated in the months before the month you reach your full retirement age count towards this limit. For instance, if you reach FRA in August 2025, only your earnings from January through July will be considered. Once you reach your full retirement age, the earnings limit no longer applies.

Benefits withheld due to exceeding the earnings limit are not permanently lost. When you reach your full retirement age, the Social Security Administration recalculates your monthly benefit amount. This recalculation accounts for the months benefits were withheld, potentially leading to a higher monthly payment for the remainder of your retirement. However, starting benefits early still results in a lower lifetime benefit compared to waiting until your full retirement age.

Working at or After Full Retirement Age

Once an individual reaches their full retirement age (FRA), the Social Security earnings limit no longer applies to their benefits. This means you can work and earn any amount of income without your Social Security retirement benefits being reduced or withheld. The complete removal of the earnings limit begins with the month you attain your full retirement age.

For example, if your full retirement age is 67 and you turn 67 in August, your earnings from August onward will not affect your Social Security benefits, regardless of the amount. Prior to that month, the special earnings limit for the year you reach FRA still applies, but only to earnings before your birthday month.

Continued work after reaching full retirement age can also lead to an increase in your Social Security benefits. The Social Security Administration periodically reviews the earnings records of beneficiaries. If your earnings in a given year are higher than one of the 35 highest earning years used in your initial benefit calculation, the SSA will recompute your benefit. This recomputation can result in a higher monthly benefit amount.

Tax Implications of Social Security Benefits

Social Security benefits can become subject to federal income tax if your total income, including earnings from work, exceeds specific thresholds. The Internal Revenue Service (IRS) uses “provisional income” to determine the taxability of these benefits. Provisional income is calculated as your Adjusted Gross Income (AGI), plus any nontaxable interest, plus one-half of your Social Security benefits.

There are two primary provisional income thresholds that dictate how much of your Social Security benefits may be taxed. If your provisional income falls between $25,000 and $34,000 for single filers, or between $32,000 and $44,000 for those married filing jointly, up to 50% of your Social Security benefits may be subject to federal income tax.

If your provisional income exceeds the second threshold—over $34,000 for single filers or over $44,000 for married couples filing jointly—up to 85% of your Social Security benefits may be subject to federal income tax. Working while receiving benefits can increase your provisional income, potentially pushing you above these thresholds. These income thresholds are not adjusted annually for inflation, which means that over time, more of your benefit could become taxable due to cost-of-living adjustments (COLAs) or increased retirement account withdrawals.

Reporting Earnings and Benefit Adjustments

Accurately reporting your earnings to the Social Security Administration (SSA) is important when managing your benefits while working. If you are receiving Social Security benefits and continue to work, you should report any changes in your earnings to the SSA. This helps the SSA correctly determine your benefit amount and avoid potential overpayments or underpayments. The SSA uses your reported earnings to apply the earnings limits if you are below your full retirement age.

The SSA has various methods for reporting earnings. You can contact your local Social Security office, call their toll-free number, or utilize online tools through your personal “my Social Security” account.

The SSA conducts an annual review process based on W-2 forms submitted by employers and self-employment income reported to the IRS. If your actual earnings differ from estimated earnings, the SSA will adjust your benefits. If you earned more than anticipated, the SSA may withhold future benefits to recover any overpayment. Conversely, if you earned less than estimated, the SSA may issue additional payments. Regularly checking your earnings record through your “my Social Security” account ensures its accuracy.