Social Security recipients can work, but earnings over a certain amount may reduce benefits. Knowing the limits helps you make informed decisions about working.
7. What to Do If You Don’t Get Paid
The Social Security earnings test measures how much you can earn without reducing your benefits. If you earn above the set limit, your benefits might be lowered.
2. The Earnings Test Explained
If you are under your full retirement age, working may lower your monthly benefits. The limits vary depending on the year you reach full retirement age.
3. Impact Before Full Retirement Age
Once you reach full retirement age, you can work as much as you want without reducing your benefits. This means you can keep all your earnings without penalty.
4. After Reaching Full Retirement Age
If your income exceeds the limit, Social Security deducts a portion of your benefits. The amount deducted depends on how much you earn over the annual threshold.
5. How Earnings Affect Your Benefit
The limits change each year. For 2025, if you're under full retirement age, you can earn up to $21,240 annually without seeing a reduction in benefits.
5. How to Check Your Payment
Even after your benefits are reduced, they may be taxed. If you earn above a certain threshold, part of your benefits might be taxable depending on your income. 4o mini
7. Benefits and Taxes