Social security benefits provide financial support for millions of families and individuals across the U.S and that includes retirees, disabled individuals, and survivors. However, for those who are working while receiving benefits, earning above specific income limits set by the Social Security Administration (SSA) can affect the amount you receive from social security.
Income Limits for Social Security Benefits
Income limits set by the SSA for social security benefits are meant to ensure that benefits are distributed fairly, especially for those who have not yet reached their full retirement age. The SSA sets different income limits depending on your age and the type of benefits you receive.
- Before Full Retirement Age: Before reaching the full retirement age, your benefits are subject to earning limits. For instance, those who were born in 1960 will reach their full retirement age by 67, but before that, their earnings are subject to the earnings limits. For this year, 2024, the earning limit is $22,320. If you earn higher than this, the SSA will remove $1 for every $2 dollars you earn above this limit. This will continue until you have reached your full retirement age.
- In the year you reach full retirement age: When you reach your full retirement age, your earning limit will increase, allowing you to earn more money. In 2024, the limit is $59,520. However, in the year you are expected to reach your full retirement age, the SSA will deduct $1 for every $3 you earn above your income limit.
Here is a table showing how much you can earn from social security for people younger than full retirement age:
| Monthly social security benefits | Your earnings | Yearly benefits |
| $700 | $22,320 or less | $8,400 |
| $700 | $24,00 | $7,560 |
| $700 | $26,000 | $6,560 |
| $900 | $22,320 or less | $10,800 |
| $900 | $24,000 | $9,960 |
| $900 | $26,000 | $8,960 |
| $1,100 | $22,320 or less | $13,200 |
| $1,100 | $24,000 | $12,360 |
| $1,100 | $26,000 | $11,360 |
See what will happen to social security when congress passes the Fairness Act.
How Earnings are counted
It is crucial to know what counts as earnings toward the SSA’s earning limits. If you work for wages, only earnings from your job are counted. This means that income from pensions, investments, interest, annuities, and capital gains do not count toward Social Security’s earnings limits. Additionally, other types of government benefits that you receive are not included in this calculation.
For individuals who are self employed, the SSA counts net earnings from your self-employment. However, your income is considered only when it is received, not when it is earned. That means, if you earned money in one year but were paid by the next year, that income would be counted in the year it was received, not the next year.
Reporting income to the SSA
To avoid any kind of discrepancies in your payment, ensure to report your earnings accurately to the SSA. However, expect your income to be adjusted by the SSA if you exceed your income limit, that means you may see a reduction in your earnings. You should also expect to refund excess payments made by the SSA if your income was not reported accurately. Annually, the SSA provides a review of your income to ensure that your payment aligns with your earnings.
