Can You Collect Social Security and Work Full Time?

It is possible to receive Social Security benefits while maintaining full-time employment, but certain rules and financial implications come into play. Understanding these provisions is important for individuals planning their retirement and work arrangements. The Social Security Administration has specific guidelines regarding how earned income can affect benefit payments, particularly before reaching full retirement age. These rules balance providing retirement income with encouraging continued workforce participation.

Social Security Earnings Limit Before Full Retirement Age

Individuals who begin collecting Social Security retirement benefits before reaching their full retirement age (FRA) are subject to annual earnings limits. Full retirement age varies depending on an individual’s birth year, generally ranging from 66 to 67.

In 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, Social Security will deduct $1 from your benefits.

A different, more generous earnings limit applies in the year an individual reaches their full retirement age. For 2025, this limit is $62,160, and Social Security will deduct $1 in benefits for every $3 earned above this amount. This specific limit only applies to earnings in the months before the individual’s birth month when they attain full retirement age; earnings from the month of FRA onward are not subject to any limit.

The Social Security Administration also has a special rule for the first year of retirement, helpful if an individual stops working mid-year. This rule allows for full benefits for any month considered retired, regardless of annual earnings, as long as monthly earnings do not exceed a specific threshold. For 2025, this monthly threshold is $1,950 for those under FRA for the entire year, or $5,180 for months before reaching FRA in the year they attain it. Any benefits withheld due to exceeding these earnings limits are not permanently lost; instead, an individual’s monthly benefit amount will be recalculated and increased once they reach their full retirement age to account for the prior withholdings.

Social Security Benefits at or After Full Retirement Age

Once an individual reaches their full retirement age (FRA), the Social Security earnings limit no longer applies. You can earn any amount of income from work without your Social Security benefits being reduced or withheld.

The removal of the earnings limit at FRA allows beneficiaries to fully integrate their work income with their retirement benefits. It supports individuals who choose to continue working full-time or part-time without financial penalty, providing greater financial flexibility in their later years.

Taxation of Social Security Benefits and Earned Income

Working full-time while receiving Social Security benefits can impact the federal income taxation of those benefits. Social Security benefits are not always tax-free; their taxation depends on an individual’s total income, which includes earned income from employment. The Internal Revenue Service (IRS) uses provisional income to determine how much of your Social Security benefit may be subject to federal income tax.

Provisional income is calculated by taking your adjusted gross income (AGI), adding any tax-exempt interest, and then adding one-half of your Social Security benefits. The amount of your Social Security benefits that becomes taxable depends on where your provisional income falls within specific thresholds, which are adjusted annually. For 2025, these thresholds differ based on your tax filing status.

Single Filers

If provisional income is below $25,000, no Social Security benefits are taxable.
If provisional income is between $25,000 and $34,000, up to 50% of your Social Security benefits may be taxable.
For provisional income above $34,000, up to 85% of your Social Security benefits could be subject to federal income tax.

Married Filing Jointly

If provisional income is below $32,000, no benefits are taxable.
Between $32,000 and $44,000, up to 50% of benefits may be taxable.
Above $44,000, up to 85% may be taxable.

Earned income from full-time work directly contributes to your adjusted gross income, which in turn increases your provisional income, potentially pushing you into a higher tax bracket for your Social Security benefits.

Reporting Your Earnings to Social Security

When collecting Social Security benefits while working, it is important to report your earnings to the Social Security Administration (SSA). This reporting helps the SSA pay the correct benefit amount and prevents overpayments. You should report your estimated annual earnings, especially if you anticipate earning above the applicable earnings limit while you are still below your full retirement age.

The SSA offers several methods for reporting earnings:
Online through your personal “my Social Security” account
By phone
By mail
In person at a local Social Security office

After the year ends, the SSA reviews your actual earnings, often through information from your tax returns. Accurate and timely reporting helps ensure your benefits are adjusted correctly, minimizing overpayments or underpayments. It is also advisable to keep detailed records, such as pay stubs, to verify reported earnings if needed.