Early retirement monthly income limitation calculation

[GlenW216499]

My wife started taking early Social Security benefits at age 62. She has a part time job. We know there is a 2026 income limitation of $2,040 per month. If her income exceeds that amount in a given month, she won't receive any Social Security benefits for that month.

She receives a paycheck every 2 weeks. Each paycheck is for the amount she worked the 2 weeks prior to receiving her paycheck. She will get 3 paychecks this month (July): July 3, 17, and 31. The July 17 paycheck is for the 2 weeks she worked at the end of June and early July. How does Social Security calculate monthly earnings for the limitation test?

Here are her July paycheck dates and the associated pay period dates:
July 3 paycheck: June 14 - June 27
July 17 paycheck: June 28 - July 11
July 31 paycheck: July 12 - July 25

We've done some online research, and have found conflicting answers that state the monthly income limitation is based on either (1) when the earnings occur or (2) when the earnings are paid. The correct answer is important because the July 17 paycheck covered a pay period that spans two months (June and July).

[GailL1 · Accepted solution]

@GlenW216499 

Read the publication and look at the examples - I think it should explain things in a clearer light.  

See if this helps

SSA.gov - 2026 Publication - How Work Affects Your Benefit 

Actually the weekly amount is only used under the special rule for the 1st year in getting retirement. See page 5. 

This may be the reason why you seem to be getting different answers - from the SSA ’s own words in black and white:

Page 4 - “If you work for wages, income counts when it’s earned, not when it’s paid”.

Page 5 - “If you’re self-employed, income counts when you receive it — not when you earn it. This is not the case if it’s paid in a year after you become entitled to Social Security and earned before you became entitled.

If this is going to be ongoing - then figure up what she is earning by month and report that to SSA - they can adjust their figures based on your reporting.  Then next year do the same when the earnings limit is posted.  In 2025, the earnings limit is $ 24,480.  It will change in 2027 - 

[GlenW216499]

Thank you. That helps a lot. I downloaded that document and saw the words you quoted on page 4. We are all clear now. Appreciate your help!