Yes, you can work and collect Social Security at the same time, but there are limits
You can collect Social Security benefits and work in the same year. However, if you are under your full retirement age, Social Security will reduce your benefit payment for every dollar you earn above a certain amount. Once you reach your full retirement age, you can work and earn as much as you want without any reduction to your benefits.
The reduction is temporary — it applies only to the months you are working and earning above the limit. After you reach full retirement age, all your benefits are restored, and your future payments are recalculated to account for the months when benefits were withheld.
Key Takeaways
- If you claim Social Security before your full retirement age, Social Security deducts $1 from your benefit for every $2 you earn above the annual earnings limit.
- The earnings limit changes each year — in 2024 it is $23,400 for people under full retirement age, but you should check the current year's limit on Social Security's website.
- In the year you reach full retirement age, a different limit applies only to earnings before the month you turn that age.
- Once you reach your full retirement age, you can work and earn any amount without losing any benefits.
- Self-employment income, wages, bonuses, and commissions all count toward the earnings limit, but pensions, investments, and rental income do not.
How the earnings limit works before full retirement age
Social Security uses an earnings test to determine how much of your benefit you receive if you work before reaching full retirement age. For every $2 you earn above the annual limit, Social Security withholds $1 from your monthly benefit.
The annual earnings limit is set by law and adjusted each year. You should check the current limit on ssa.gov before you start working or increase your hours, because the number changes. The limit applies to your total earnings for the entire calendar year, not to individual paychecks.
If you earn $5,000 above the limit in a year, Social Security will withhold $2,500 from your total benefits for that year. That withholding is spread across your monthly payments, so you receive a reduced check each month. The reduction is not permanent — it is only for the year you earned above the limit.
What counts as earnings and what does not
Earnings that count toward the limit include wages from a job, net income from self-employment, bonuses, commissions, and paid vacation or sick leave. If you own a business, your net profit counts, not your gross revenue.
Earnings that do not count include pensions (whether from a government job or a private employer), investment income, interest, dividends, rental income, capital gains, and royalties. Social Security also does not count jury duty fees, gambling winnings, or money you receive from selling an asset.
If you are unsure whether a specific type of income counts, you can contact Social Security directly at 1-800-772-1213 or visit your local Social Security office. Bring documentation of the income in question.
The year you reach full retirement age
In the year you turn your full retirement age, a different earnings limit applies — and it is higher. This limit covers only earnings you receive before the month you reach full retirement age. Starting the month you turn full retirement age, you can earn any amount with no reduction to your benefits.
For example, if you turn 67 in June, the higher earnings limit applies to income you earn from January through May. Beginning in June, when you reach full retirement age, you can work and earn without limit.
Social Security will ask you to report your expected earnings for the year you reach full retirement age. If you earn more than expected and your benefits were reduced, Social Security will recalculate and send you a refund for the months you were overpaid.
How to report your earnings to Social Security
You do not have to report your earnings every month. Instead, you report your total earnings for the year on your tax return, and Social Security receives that information from the IRS. However, if you think your earnings will be close to or above the limit, you can report them to Social Security in advance to avoid overpayment.
You can report earnings by calling Social Security at 1-800-772-1213, visiting your local office, or using your my Social Security account online at ssa.gov. If you report in advance and your actual earnings are different, you will need to report the correct amount when you file your taxes.
If Social Security overpays you because your earnings were higher than you reported, you will owe the money back. The overpayment is usually recovered by reducing your future benefit payments, though you can request a different repayment arrangement.
What happens to your benefits after you reach full retirement age
Once you reach your full retirement age, the earnings limit no longer applies. You can work full-time, part-time, or start a business and keep your full Social Security benefit with no reduction, no matter how much you earn.
Additionally, Social Security recalculates your benefit amount to account for the months when benefits were withheld due to the earnings test. Your future monthly payment may increase because those withheld months are not counted against your lifetime benefit total. This recalculation happens automatically — you do not need to request it.
Planning your work and benefits strategy
If you are thinking about claiming Social Security before full retirement age and continuing to work, consider whether the reduction in benefits is worth it. Some people find that delaying their claim until full retirement age and working longer results in a higher lifetime benefit total.
You can use the retirement estimator on ssa.gov to see how your benefit amount changes based on when you claim. This tool shows you estimates for claiming now, waiting a year, or waiting until full retirement age, so you can compare scenarios.
If you are self-employed, keep careful records of your net income, because Social Security will verify your earnings against your tax return. If there is a mismatch, Social Security may ask you to provide documentation of your business expenses.
Frequently Asked Questions
Will working reduce my spouse's or children's benefits?
No. The earnings test applies only to the person who claimed Social Security. If your spouse or children receive benefits based on your record, their payments are not reduced because you are working. However, if they are also working and claimed benefits before their full retirement age, their own benefits may be reduced based on their own earnings.
What if I work part-time or seasonally?
Social Security counts all your earnings for the year, whether you work full-time, part-time, or seasonally. If you work only a few months per year, you may be able to keep your earnings below the limit and avoid any reduction. However, you must report all earnings, including seasonal income.
Can I work for someone else and also be self-employed?
Yes. Social Security counts both your wages from employment and your net self-employment income toward the earnings limit. If you have both types of income, add them together to see if you exceed the limit for the year.
What if I made a mistake reporting my earnings last year?
Contact Social Security as soon as you realize the error. If you were underpaid because your actual earnings were lower than reported, Social Security will recalculate and send you a refund. If you were overpaid, you will owe the money back, but you can ask about a payment plan.
Does the earnings limit explore if I delay claiming Social Security past full retirement age?
No. If you have not yet claimed Social Security, there is no earnings limit on how much you can work and earn. You can work full-time at any age without affecting your future benefit amount. Your benefit will be higher when you do claim because you waited past full retirement age.