You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.
We use the following earnings limits to reduce your benefits:
- If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit.
For 2024 that limit is $22,320.
- In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age.
If you will reach full retirement age in 2024, the limit on your earnings for the months before full retirement age is $59,520.
Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.
Use our Retirement Age Calculator to find your full retirement age based on your date of birth.
Use our Retirement Earnings Test Calculator to find out how much your benefits will be reduced.
What counts as earnings:
When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net earnings if you're self-employed. We include bonuses, commissions, and vacation pay. We don't count pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits.
Your benefits may increase when you work:
As long as you continue to work, even if you are receiving benefits, you will continue to pay Social Security taxes on your earnings. However, we will check your record every year to see whether the additional earnings you had will increase your monthly benefit. If there is an increase, we will send you a letter telling you of your new benefit amount.
When you’re ready to apply for retirement benefits, use our online retirement application, the quickest, easiest, and most convenient way to apply.
If you need to report a change in your earnings after you begin receiving benefits:
If you receive benefits and are under full retirement age and you think your earnings will be different than what you originally told us, let us know right away. You cannot report a change of earnings online. Please call us at 1-800-772-1213 (TTY 1-800-325-0778), 8:00 a.m. – 7:00 p.m., Monday through Friday, or contact your local Social Security office.
There is a different work test for beneficiaries working outside of the United States. If you live outside of the United States, visit the Social Security Office of Earnings & International Operations page to find the office that serves your country of residence.
More Information
How Work Affects Your Benefits
Examples: How We Deduct Earnings From Benefits
FAQs
Your benefits may increase when you work: As long as you continue to work, even if you are receiving benefits, you will continue to pay Social Security taxes on your earnings. However, we will check your record every year to see whether the additional earnings you had will increase your monthly benefit.
How much can I earn without affecting my Social Security retirement? ›
If you're younger than full retirement age, there is a limit to how much you can earn and still receive full Social Security benefits. If you're younger than full retirement age during all of 2024, we must deduct $1 from your benefits for each $2 you earn above $22,320.
Does retirement count as income for Social Security? ›
Pension payments, annuities, and the interest or dividends from your savings and investments are not earnings for Social Security purposes. You may need to pay income tax, but you do not pay Social Security taxes.
What are the three ways you can lose your Social Security? ›
Social Security: 4 Ways You Can Lose Your Benefits
- You Forfeit Up To 30% of Your Benefits by Claiming Early. ...
- You'll Get Less If You Claim Early and Earn Too Much Money. ...
- The SSA Suspends Payments If You Go To Jail or Prison. ...
- You Can Lose Some of Your Benefits to Taxes. ...
- You Can Lose SSDI in a Few Different Ways.
There is no cap on how much you can earn while on Social Security — if you've reached full retirement age. Tina Orem is an editor at NerdWallet. Prior to becoming an editor, she covered small business and taxes at NerdWallet.
How often does Social Security recalculate benefits based on your earnings? ›
The Social Security Administration recalculates your benefits annually, which means the amount of your checks can change from year to year. This can happen because of factors within your control, such as your work, and factors outside of your control, such as inflation.
How do you get the $16728 Social Security bonus? ›
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
At what age do you get 100% of your Social Security? ›
The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67.
At what age can you collect Social Security and work full time? ›
If you're eligible for Social Security, you can start collecting your benefits as early as age 62, and you can also continue to work.
What type of income does not affect Social Security benefits? ›
This only affects people who start taking benefits before reaching full retirement age. And only income earned from working has this effect. Other types of income, such as dividends, interest and capital gains from investments, aren't counted by Social Security for this purpose.
You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.
What is not counted as income? ›
Nontaxable income won't be taxed, whether or not you enter it on your tax return. The following items are deemed nontaxable by the IRS: Inheritances, gifts and bequests. Cash rebates on items you purchase from a retailer, manufacturer or dealer.
Do I lose Social Security benefits if I work? ›
Yes, you can work and collect Social Security benefits at the same time. However, if you are younger than your full retirement age, part of your Social Security payments may be temporarily withheld if you earn too much.
What disqualifies you from Social Security? ›
Not working long enough is the most obvious reason someone wouldn't be eligible for Social Security retirement benefits. You must have a work history of at least 10 years to earn the credits you need to be eligible for Social Security as a retiree.
Can you get $3,000 a month in Social Security? ›
For example, if you get $36,000 a year ($3,000 a month) from Social Security and have no other income, your combined income is $36,000 divided by 2, or $18,000. None of your benefits are taxable if your income is below $25,000 for a single filer or $32,000 for joint filers.
What is the 10 year rule for Social Security? ›
If you've worked and paid Social Security taxes for 10 years or more, you'll get a monthly benefit based on that work.
What is the income limit for Social Security in 2024? ›
The earnings limit for workers who are younger than "full" retirement age (see Full Retirement Age Chart) will increase to $22,320. (We deduct $1 from benefits for each $2 earned over $22,320.) The earnings limit for people reaching their “full” retirement age in 2024 will increase to $59,520.
