Please Clarify About Earning Limits/Deductions before full retirement age

[CraigF198516]

 Hi Everyone:

 I hope somebody can clarify something I am confused about if you collect Social Security and   choose to work as well (before full retirement age).

 I understand in 2025 if under the full retirement age you can earn 23,400 per year.

 Does Social Security wait until the end of the year to see if you went over the amount before   reducing  benefits 1.00 for every 2.00 you earn?

 I thought I saw something as a test that Social Security uses 1,950.00 as an earning limit per month.   Does that mean if you work 1 month say January 2025 and earn 2000.00 they are assuming you are

 making over the 23,400 for the year and start withholding money?

 What if you earned nothing in January/February but made 2000.00 in March are they still assuming   you are going over (because it is more than 1,950.00)?

  If the money is withheld do you get the funds once the year is over and the amount of income is   finalized or do you have to wait until full retirement age to see it?

  The hope is that you can earn anything per month as long as the yearly total is under 23,400 without   an assumption you will go over.

  Thank you everyone for your time.

[GailL1]

@CraigF198516 

 SSA.gov - What happens if I work and get Social Security Retirement Benefits 

YOU report your wages (the overages) and they adjust your benefits accordingly. 

SSA.gov - How Work Affects Your Benefit 

Then when you reach the year that you will reach your FRA, the limit is raised and you do the same but with the higher limit.  Then once you reach FRA, work and earn as much as your want with no reduction to your retirement benefit.

Also once you reach the year after your FRA, you will get an extra payment or so during the 1st part of the year to account for this and if what you are earning now makes a difference to your monthly benefit, then that too is adjusted going forward.

[papawofboo]

The way it worked when I started was when you filed your taxes then SS would figure out how much you had made over the limit. Then they would hold that back the following year. It would be around April of the next year before I got a check. At the start it was a dollar for every two, then it went down to a dollar for every three then it went away and you earn any amount with no hold back.

It was always figured on your yearly tax return, don't get hung up on a month or two out of the year.

[CraigF198516]

 Thank you for the quick reply. It would be superlative if it works that way 100 percent.  

  When I Googled for information it seemed in some links there was talk about the assumption   if you went over the 1950 per month, it would exceed the yearly total and they started   withholding  from the get-go.

 All the best for your help!

[papawofboo]

Well I don't see how they could keep up with it monthly, and on top of that with all the cut backs I just don't see it. Best I remember is that at year end you get a statement from SS about how much you drew. I thought it explained it on the back, also you could just go to the web site. It was 18 years ago when it was happening to me so I'm guessing there has been some changes.

[Winter2025VA]

Papaw @papawofboo , IF info is NOT on back, maybe Craig @CraigF198516 can call or stop by his local office. Take care, Nicole  👵

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[*** @papawofboo wrote 4/13/25:

Well I don't see how they could keep up with it monthly, and on top of that with all the cut backs I just don't see it. Best I remember is that at year end you get a statement from SS about how much you drew. I thought it explained it on the back, also you could just go to the web site. It was 18 years ago when it was happening to me so I'm guessing there has been some changes. ***]

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[CraigF198516]

 The reason I has posted to begin with was the Social Security site was not clear

  as well as some others (that was the reason for the confusion with the mention

  of the 1950.00 per month).

 In addition the wait time on the phone (before any budget cuts) has always been

 hours when I have called and the email response (their own words) takes a long

 time due to volume.

  Thank you to anybody that has replied and be well!

[Winter2025VA · Accepted solution]

YES Craig @CraigF198516 , and it is going to get WORST!!!  😤

IF you are age 50+ and in the USA, your Local Aging Office (LOA) can help. You will need an appointment, NO show up. They too are VERY BUSY but will HELP. They are properly TRAINED. Let us know IF you find your answer and/or need something else. NO pressure to do this. Take care, Nicole  👵

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[*** @CraigF198516 wrote 4/13/25:

 The reason I has posted to begin with was the Social Security site was not clear

  as well as some others (that was the reason for the confusion with the mention

  of the 1950.00 per month).

 In addition the wait time on the phone (before any budget cuts) has always been

 hours when I have called and the email response (their own words) takes a long

 time due to volume.

  Thank you to anybody that has replied and be well! ***]

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