How Much Can You Earn While Getting Social Security?

Social Security earnings limits are rules determining how much a beneficiary can earn from working while receiving Social Security benefits before reaching their full retirement age. These limits balance providing income to retired or disabled individuals with encouraging continued workforce participation. Exceeding these thresholds can lead to a temporary adjustment in benefits. These earnings limits apply to individuals collecting Social Security retirement or survivor benefits who have not yet reached their full retirement age.

Understanding Social Security Earnings Limits

The amount of income you can earn while receiving Social Security benefits is determined by your age relative to your full retirement age (FRA). Your full retirement age is set by law and varies based on your birth year, ranging from 66 to 67. The Social Security Administration (SSA) applies different earnings limits depending on whether you are under your FRA for the entire year, or if you will reach your FRA within the year.

For beneficiaries under their full retirement age for the entire year, a specific annual earnings limit applies. In 2025, this limit is $23,400. If earnings exceed this amount, Social Security benefits are reduced by $1 for every $2 earned over the limit. This calculation applies to total annual earnings, not just monthly income.

A higher annual earnings limit applies in the year you reach your full retirement age. For 2025, this limit is $62,160. For earnings in the months leading up to the month you reach your FRA, benefits are reduced by $1 for every $3 earned above this higher limit. Once you reach your full retirement age, the earnings limit no longer applies to any income earned from that month forward.

After reaching your full retirement age, there are no earnings limits whatsoever. You can earn any amount of income from work without it affecting your Social Security benefits.

How Earned Income Affects Your Benefits

When a beneficiary’s earnings exceed the applicable limit, the Social Security Administration (SSA) generally withholds entire monthly benefit payments to account for the overage. For instance, if your estimated excess earnings would result in a $2,000 reduction, and your monthly benefit is $1,000, the SSA might withhold your benefits for two months.

After the tax year concludes, the SSA performs an annual accounting to reconcile reported earnings with benefits paid. If too much was withheld, the beneficiary may receive a lump-sum payment. Conversely, if not enough was withheld, the beneficiary might owe money back to the SSA.

Any benefits withheld due to exceeding the earnings limit are not permanently lost. The reduction in benefits is temporary. When a beneficiary reaches their full retirement age, their monthly benefit amount is recalculated to account for the benefits that were withheld due to past earnings. This recalculation results in a higher monthly payment for the remainder of their life, effectively returning the previously withheld funds over time.

What Income Is Counted for Earnings Limits

For Social Security earnings limits, only specific types of income are considered. The Social Security Administration primarily counts “earned income,” which includes wages from an employer for work performed and net earnings from self-employment, calculated after deducting allowable business expenses.

Income that does not count towards the earnings limits includes most types of “unearned income.” Examples include pensions, annuities, and investment income such as interest, dividends, or capital gains.

Other forms of unearned income not subject to these limits include government or military retirement benefits, rental income from properties where you do not materially participate, workers’ compensation payments, and unemployment benefits. Income from deferred compensation plans or sick pay may also be excluded if not considered wages for Social Security purposes. The focus is on income derived from active employment or business operations.

Reporting Your Earnings to Social Security

Timely and accurate reporting of your earnings to the Social Security Administration (SSA) is important for managing your benefits. You should inform the SSA when you begin working or if there is a significant change in your estimated annual earnings. This proactive communication helps prevent overpayments or underpayments.

You can report your estimated annual earnings online through your personal my Social Security account. Alternatively, you may contact the SSA by phone, visit a local Social Security office, or send the required information via mail.

When reporting, the SSA typically needs details such as your estimated total annual earnings, employment start and stop dates, and whether the income is from wages or self-employment. Providing this information ensures the SSA accurately applies the earnings limits. The SSA regularly compares reported earnings with IRS tax records, so keeping your estimates current is beneficial for a smooth process.

Taxation of Your Social Security Benefits

The earnings limits applied by the Social Security Administration are distinct from the rules governing the taxation of your Social Security benefits by the Internal Revenue Service (IRS). Earnings limits determine if your benefits are reduced based on work income before full retirement age, while taxation rules determine if a portion of your benefits is considered taxable for federal tax purposes.

The IRS uses “provisional income” (sometimes called “combined income”) to determine if your Social Security benefits are subject to federal income tax. Provisional income is calculated by adding your adjusted gross income, any tax-exempt interest, and one-half of your Social Security benefits.

For 2025, if your provisional income is below $25,000 for single filers or $32,000 for married couples filing jointly, generally none of your Social Security benefits are taxable. If your provisional income falls between $25,000 and $34,000 for single filers or between $32,000 and $44,000 for married couples filing jointly, up to 50% of your Social Security benefits may be taxable. For provisional incomes exceeding $34,000 (single) or $44,000 (married filing jointly), up to 85% of your Social Security benefits may be subject to federal income tax.

Each year, beneficiaries receive a Form SSA-1099, Social Security Benefit Statement, detailing the total amount of benefits received. This form is essential for accurately preparing your federal income tax return. Taxation of benefits is based on your total income from all sources, not just earned income, highlighting the difference from the SSA’s earnings limits.