There is no income limit once you are receiving Social Security
Once you start collecting Social Security retirement benefits, you can earn as much money as you want without losing any of your benefit payment. The earnings test — a rule that reduces benefits based on how much you work — only applies to people who have not yet reached their full retirement age and are still working.
If you are already receiving benefits and you are at or past your full retirement age, your earnings do not affect your monthly check at all. This is true whether you earn $10,000 a year or $100,000 a year.
Key Takeaways
- Once you reach your full retirement age, you can earn unlimited income without any reduction to your Social Security benefits.
- If you claim benefits before your full retirement age and continue working, Social Security reduces your payment by $1 for every $2 you earn above the annual limit.
- The earnings limit changes each year — in 2024 it is $23,400 for people under full retirement age for the entire year.
- In the year you reach full retirement age, a different limit applies only to earnings before the month you turn that age.
- Self-employment income counts toward the earnings limit the same way W-2 wages do.
How the earnings test works if you claim early
If you claim Social Security before you reach your full retirement age, Social Security counts how much you earn from work each year. If your earnings go above a certain amount, your benefit is reduced. The reduction is $1 in benefits for every $2 you earn above the limit.
For example, if the annual limit is $23,400 and you earn $25,400, you are $2,000 over the limit. Social Security would reduce your annual benefits by $1,000 (half of $2,000). This reduction is spread across your monthly payments.
The earnings limit applies only to income from work — wages, self-employment income, and bonuses. It does not include retirement savings, investment income, pensions, rental income, or other money you receive.
The earnings limit changes each year
Social Security adjusts the earnings limit annually based on national wage trends. The limit for people who have not reached full retirement age is different from the limit in the year someone turns full retirement age.
In 2024, the limit for people under full retirement age for the entire year is $23,400. In the year you reach full retirement age, the limit is higher — $62,160 in 2024 — but it only counts earnings before the month you turn that age. Once you reach full retirement age, even in that same calendar year, the earnings test stops explore.
You can find the current year's limits on the Social Security Administration website, or call Social Security directly at 1-800-772-1213 to confirm the limit for your situation.
What counts as earnings and what does not
Social Security counts wages from a job, net income from self-employment, and bonuses as earnings. If you own a business, your net profit counts toward the limit. Commissions and tips count too.
These do not count: interest and dividends from investments, capital gains from selling stocks or property, rental income, pension payments, annuities, insurance payouts, inheritances, or money from savings accounts. Nor does it count Social Security itself, Medicare, or other government benefits.
If you are unsure whether a particular income source counts, Social Security can tell you. Many people are surprised to learn that their retirement savings and investment income do not affect their benefits at all.
How to report your earnings to Social Security
You are required to report your earnings to Social Security if you claim benefits before your full retirement age. You can report online at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office.
Social Security also receives wage information directly from the Internal Revenue Service and your employer, so they will know about your earnings even if you do not report them. It is better to report yourself so there are no surprises when your benefits are adjusted.
If you earn more than expected during the year, contact Social Security right away. They can adjust your withholding so you do not overpay and then have to repay the money later.
What happens if you earn more than the limit
If you earn above the limit, Social Security does not stop your benefits entirely. Instead, they reduce your monthly payment by $1 for every $2 you earn over the limit. The reduction continues until you reach your full retirement age.
Some people find it makes sense to claim benefits early and work anyway, because even with the reduction, they come out ahead over time. Others choose to delay claiming until they reach full retirement age so they can work without any reduction. This is a personal decision that depends on your health, how much you plan to work, and your family history.
If Social Security overpays you because you earned more than you reported, they will ask you to repay the overpayment. You can arrange a payment plan if you cannot pay it all at once.
When to contact Social Security about your situation
Contact Social Security if you are thinking about claiming benefits before your full retirement age and you plan to keep working. They can explain how the earnings test would affect your specific situation and help you understand whether claiming early makes sense for you.
Also reach out if your work situation changes — if you get a raise, take on a second job, start a business, or retire. Social Security needs to know so they can adjust your benefits correctly.
If you receive a notice that your benefits have been reduced or that you owe money back, contact Social Security to understand why. Sometimes these notices are based on outdated information, and you may be able to correct it.
Frequently Asked Questions
Can I work and collect Social Security at the same time?
Yes, but if you have not reached your full retirement age, your benefits will be reduced if you earn above the annual limit. Once you reach full retirement age, you can work and collect your full benefit with no reduction, no matter how much you earn.
Does my spouse's income affect my Social Security benefits?
No. The earnings test applies only to your own work income, not your spouse's. If your spouse works and earns a lot, it does not reduce your benefits. However, if your spouse also claims Social Security benefits before full retirement age, their earnings would reduce their own benefits.
What if I am self-employed — how do I report my income?
Self-employment income counts the same way as wages. You report your net profit (income minus business expenses) to Social Security. You can report online, by phone, or in person. Social Security will also receive information from your tax return, so make sure your reports match.
If I work and earn too much, will Social Security take back all my benefits?
No. Social Security reduces your benefits by $1 for every $2 you earn above the limit, but they do not take back your entire benefit. Even if you earn significantly above the limit, you keep some of your monthly payment.
Does the earnings limit explore to my spouse's benefits if I claim early?
No. If you claim Social Security early and your spouse receives benefits based on your record, the earnings test applies only to you. Your spouse's benefits are not reduced based on your earnings, though they may be reduced based on their own work income if they have not reached full retirement age.