How Many Hours Can You Work While Collecting Social Security?

Many individuals receiving Social Security benefits consider working, which raises questions about how employment affects payments. While there is no specific limit on the number of hours one can work, the Social Security Administration (SSA) primarily focuses on earned income. Understanding these earnings rules is important for beneficiaries to manage their financial situation, prevent unexpected benefit reductions, and plan for retirement.

Understanding Social Security Earnings Limits

Social Security earnings limits depend on an individual’s age relative to their Full Retirement Age (FRA). Your FRA is determined by your birth year, ranging from age 66 to 67 (67 for those born in 1960 or later). Claiming benefits before your FRA results in a permanently reduced monthly payment, while waiting until age 70 can increase your monthly benefit.

If you are under your FRA for the entire year, a specific earnings limit applies. For 2025, this limit is $23,400. If your earnings exceed this amount, the SSA will deduct $1 from your benefits for every $2 you earn over the limit. For example, earning $1,000 over the limit would reduce benefits by $500. This reduction is temporary, and withheld benefits are not permanently lost.

Different rules apply in the year you reach your FRA. For 2025, a higher earnings limit of $62,160 applies to income earned before the month you reach your FRA. In this scenario, the SSA deducts $1 in benefits for every $3 earned above this limit. Once you reach your FRA, there are no longer any earnings limits, and your benefits will not be reduced regardless of how much you earn.

The SSA may use a special monthly earnings test in the first year of retirement for those who retire mid-year. This rule allows you to receive a full Social Security check for any month the SSA considers you retired, regardless of your yearly earnings prior to that point. For instance, in 2025, if you are under FRA, you can earn up to $1,950 per month without benefit reduction. Withheld benefits are not forfeited; your monthly benefit is recalculated at your FRA to account for those amounts, potentially resulting in higher payments.

What Income Counts Toward the Limit

The Social Security Administration has specific definitions for what constitutes “earnings” when applying the earnings test. Only certain types of income are considered for this purpose. Primarily, this includes wages received from employment. This category covers your gross wages, including bonuses, commissions, and vacation pay.

If you are self-employed, your net earnings from self-employment are counted towards the limit. This refers to your gross income from the business minus allowable deductions. Income is generally counted when earned, not when paid, though exceptions exist for self-employment income.

Conversely, many other forms of income do not count against the Social Security earnings limit. These include income from pensions, annuities, and investment earnings such as interest, dividends, or capital gains. Other government or military retirement benefits, as well as distributions from retirement accounts like 401(k)s or IRAs, are also excluded from the earnings test. This distinction allows for financial planning that includes diverse income sources without impacting Social Security benefits.

Reporting Your Earnings to Social Security

Reporting your earnings to the Social Security Administration (SSA) is important when receiving benefits. This ensures you receive the correct payment amount and avoid overpayments or underpayments. As a beneficiary, you are responsible for reporting changes in your work activity or earnings.

You can report your wages online through your My Social Security account, by phone, by mail, or in person at a local SSA office. Supplemental Security Income (SSI) recipients must report earnings monthly, while Social Security Disability Insurance (SSDI) beneficiaries have more flexibility.

Failure to report earnings or underreporting them can lead to significant consequences. The SSA may determine that you received an overpayment, which you would then be required to repay. Overpayments can occur due to missing or incorrect information, or administrative errors. If you do not repay an overpayment, the SSA can withhold a portion of your future benefits, potentially up to 50% of your monthly check. In some cases, intentionally failing to report income can lead to more severe penalties, including fines or criminal charges for fraud.

How Working Affects Benefit Taxation

Working while collecting Social Security benefits can make a portion of those benefits subject to federal income tax. The IRS uses “provisional income” to determine if your Social Security benefits are taxable. Provisional income is calculated by adding your adjusted gross income (AGI), tax-exempt interest, and one-half of your Social Security benefits.

Once provisional income exceeds certain thresholds, a portion of your Social Security benefits becomes taxable. For single filers, if provisional income is between $25,000 and $34,000, up to 50% of your benefits may be taxable. For married couples filing jointly, this threshold is between $32,000 and $44,000.

If provisional income surpasses higher thresholds, up to 85% of your Social Security benefits can be subject to federal income tax. For single filers, this occurs when provisional income exceeds $34,000, and for married couples filing jointly, it is above $44,000. Higher earnings from work, combined with other income, can increase the taxable portion of your Social Security benefits, affecting your overall financial picture.