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Benefits Guide

Working While Receiving Social Security Benefits

Complete guide to earning income while collecting Social Security benefits. Learn about earnings limits, how work affects your benefits, special rules for self-employment, and strategies to maximize your income in 2025-2026.

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Important: Earnings Limits Apply

If you're under full retirement age and work while receiving Social Security, your benefits may be temporarily reduced if you earn above $22,320 in 2025. Benefits withheld are not lost - they're recalculated into higher monthly payments once you reach full retirement age.

2025 Social Security Earnings Limits

How much you can earn before your benefits are reduced

Under Full Retirement Age (All Year)

Annual Earnings Limit

$22,320 annually

Benefit Reduction

$1 deducted for every $2 earned above limit

Year You Reach Full Retirement Age

Annual Earnings Limit

$59,520 annually (months before FRA)

Benefit Reduction

$1 deducted for every $3 earned above limit

Full Retirement Age and Beyond

Annual Earnings Limit

No limit

Benefit Reduction

No reduction regardless of earnings

How the Earnings Test Works

Understanding how your earnings affect your Social Security benefits

1

Social Security Tracks Your Earnings

Social Security receives earnings information from your employer and the IRS. They monitor your annual earnings to determine if you exceed the limit for your age category.

2

Benefits Are Withheld If You Exceed the Limit

If your earnings exceed the annual limit, Social Security withholds benefits. The amount withheld depends on your age and how much you exceed the limit.

Example:

You're 64 and earn $32,320 in 2025. That's $10,000 over the $22,320 limit. Social Security will withhold $5,000 in benefits ($1 for every $2 over the limit).

3

Benefits Are Recalculated at Full Retirement Age

Once you reach full retirement age, Social Security recalculates your benefit to account for months when benefits were withheld. This results in a permanently higher monthly benefit for the rest of your life.

4

No Limit After Full Retirement Age

Starting the month you reach full retirement age, you can earn any amount without any reduction to your Social Security benefits. There is no earnings test after FRA.

Strategies to Maximize Benefits While Working

Smart approaches to balance work and Social Security income

Delay Claiming Benefits

If you plan to continue working, consider delaying benefits until FRA or age 70 to avoid reductions and earn delayed retirement credits (8% per year).

Calculate Break-Even Point

Use Social Security calculators to determine the optimal age to claim benefits based on your work plans and life expectancy.

Maximize Earnings Years

Your benefit is based on your highest 35 years of earnings. Working longer can replace lower-earning years and increase your benefit.

Understand Tax Implications

Up to 85% of Social Security benefits may be taxable if your combined income exceeds certain thresholds. Plan accordingly.

Special Work Situations

Important rules for specific employment scenarios

Self-Employment

  • Net earnings (after expenses) count toward the limit
  • Must pay 15.3% self-employment tax
  • Income counted when received, not when earned
  • Special rules for determining work activity

Disability Benefits (SSDI)

  • Substantial Gainful Activity (SGA) limit: $1,550/month in 2025
  • 9-month Trial Work Period available
  • Extended Period of Eligibility after trial period
  • Ticket to Work program provides support

Government Pension Offset (GPO)

If you receive a government pension from work where you didn't pay Social Security taxes, your spousal or survivor benefits may be reduced by two-thirds of your pension amount.

Example:

$900 government pension = $600 reduction in spousal benefits

Windfall Elimination Provision (WEP)

WEP affects your Social Security benefit calculation if you receive a pension from work where you didn't pay Social Security taxes. Your benefit may be reduced, but not by more than 50% of your pension.

Maximum Reduction (2025):

Up to $587 per month (less with 20+ years of substantial earnings)

Frequently Asked Questions

Common questions about working while receiving Social Security

Can I work while receiving Social Security retirement benefits?

Yes, you can work while receiving Social Security retirement benefits at any age. However, if you're under full retirement age (FRA), your benefits may be temporarily reduced if you earn above certain limits. Once you reach FRA, you can earn any amount without affecting your benefits. Any benefits withheld before FRA will be recalculated and added back to your monthly benefit amount once you reach FRA.

What is the Social Security earnings limit for 2025?

For 2025, if you're under full retirement age for the entire year, the earnings limit is $22,320. Social Security will deduct $1 in benefits for every $2 you earn above this limit. In the year you reach full retirement age, the limit is $59,520 (for months before reaching FRA), and $1 is deducted for every $3 earned above the limit. After reaching FRA, there is no earnings limit.

Does working affect my Social Security disability benefits (SSDI)?

Yes, working can affect SSDI benefits. In 2025, you can earn up to $1,550 per month ($2,590 if blind) in what's called 'substantial gainful activity' (SGA) without losing benefits. SSDI has a Trial Work Period allowing you to test your ability to work for 9 months (not necessarily consecutive) within a 60-month period while still receiving full benefits. After the trial work period, you enter an Extended Period of Eligibility where benefits continue if earnings are below SGA levels.

How does self-employment income affect Social Security benefits?

Self-employment income is treated differently than wages. Social Security counts your net earnings from self-employment (after business expenses) when determining if you exceed the earnings limit. You must also pay self-employment tax (15.3%) which covers both the employee and employer portions of Social Security and Medicare taxes. Special rules apply for determining when income is 'earned' - it's generally counted in the year you receive payment, not when you perform the work.

What happens to benefits withheld due to excess earnings?

Benefits withheld before you reach full retirement age aren't lost forever. Once you reach FRA, Social Security recalculates your benefit amount to account for the months when benefits were withheld. This results in a higher monthly benefit for the rest of your life. Additionally, continuing to work may increase your benefit if your current earnings are higher than one of the years used in your original benefit calculation.

Do I need to report my earnings to Social Security?

Yes, if you're under full retirement age and working, you should report your estimated earnings to Social Security. You can do this when you apply for benefits or by calling 1-800-772-1213. Social Security also receives earnings information from the IRS and employers, so they'll know if you exceed the limit. It's better to report earnings in advance to avoid overpayments that you'll need to repay later.

What is the Windfall Elimination Provision (WEP)?

The Windfall Elimination Provision (WEP) affects how your Social Security benefit is calculated if you receive a pension from work where you didn't pay Social Security taxes (like some government jobs or foreign employment). WEP can reduce your Social Security benefit by up to 50% of your pension amount, but not more than a specific maximum reduction ($587 in 2025). The reduction is smaller if you have 20+ years of substantial earnings under Social Security.

What is the Government Pension Offset (GPO)?

The Government Pension Offset (GPO) affects spousal or survivor benefits if you receive a government pension based on work where you didn't pay Social Security taxes. GPO reduces your Social Security spousal or survivor benefit by two-thirds of your government pension amount. For example, if you receive a $900 monthly government pension, your Social Security spousal benefit would be reduced by $600. In many cases, this eliminates the entire spousal or survivor benefit.

Need Help Understanding Your Options?

Contact Social Security to discuss your specific situation and get personalized guidance on working while receiving benefits.

Visit SSA.govCall 1-800-772-1213

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