Social Security has different rules for how much you can earn depending on your age and whether you have reached your full retirement age
If you are under your full retirement age and still working, Social Security reduces your benefit by $1 for every $2 you earn above an annual limit. For 2024, that limit is $23,400. The reduction applies only to earnings before the month you reach full retirement age. Once you hit full retirement age, you can earn as much as you want without any reduction to your benefit.
If you reach full retirement age partway through the year, there is a different rule for that year only. Social Security reduces your benefit by $1 for every $3 you earn above a different limit — $62,160 for 2024 — but only for earnings in the months before you reach full retirement age.
After you reach full retirement age, your benefit amount does not change based on how much you earn. You receive your full benefit regardless of income from work.
Key Takeaways
- If you are under full retirement age, Social Security reduces your benefit by $1 for every $2 you earn above $23,400 per year in 2024.
- The earnings limit applies only to wages and self-employment income, not to pensions, investments, or rental income.
- Once you reach your full retirement age, you can work and earn without any reduction to your Social Security benefit.
- Your full retirement age depends on your birth year and ranges from 66 to 67 for people born between 1943 and 1960.
What counts as earnings that affects your benefit
Social Security counts wages from employment and net income from self-employment. If you are self-employed, you report your net profit — what you earn after business expenses — not your gross revenue.
Social Security does not count certain types of income toward the earnings limit. Pensions, annuities, investment income, interest, capital gains, rental income, and royalties do not reduce your benefit. Nor does income from a reverse mortgage, veterans benefits, or workers' compensation.
If you work for someone else, your employer reports your wages to Social Security through your W-2 form. If you are self-employed, you report your net earnings on your tax return, and Social Security uses that figure to calculate any reduction.
How the reduction works in the year you reach full retirement age
The year you turn your full retirement age has its own calculation. For 2024, if you reach full retirement age during the year, Social Security reduces your benefit by $1 for every $3 you earn above $62,160, but only for earnings before the month you reach full retirement age.
Once the month arrives when you reach full retirement age, the earnings limit no longer applies. Any income you earn from that month forward does not affect your benefit, even if you earn far more than the limit.
This means if you reach full retirement age in June and earn $100,000 between January and May, Social Security calculates the reduction based only on those five months of earnings. Income from June onward is ignored.
Examples of how earnings reduce your benefit
Suppose you are 62 years old, receiving Social Security, and your full retirement age is 67. In 2024, you earn $35,400 from work. Your earnings are $11,000 above the $23,400 limit. Social Security reduces your benefit by $5,500 — half of the $11,000 overage. This reduction is taken from your monthly payments throughout the year.
In another scenario, you reach full retirement age in September 2024. From January through August, you earn $80,000. The earnings limit for that portion of the year is $62,160. Your earnings are $17,840 above the limit. Social Security reduces your benefit by $5,947 — one-third of the $17,840 overage. This reduction applies only to your payments from January through August. Starting in September, you receive your full benefit with no reduction.
If you are already at full retirement age and earn $80,000 or $180,000 or any amount, your benefit does not change. You receive the same monthly payment regardless of work income.
When Social Security recalculates your benefit amount
Social Security does not permanently reduce your benefit when you earn above the limit. Instead, the agency recalculates your benefit at your full retirement age to account for the months when you received a reduced payment.
When you reach full retirement age, Social Security reviews your entire earnings history and adjusts your benefit upward. The months when your benefit was reduced are treated as if you had not claimed yet, which can increase your monthly payment going forward. This is called a "recalculation" or "recomputation."
The recalculation means that if you claimed Social Security early and worked, you are not permanently penalized. Your benefit increases when you reach full retirement age, though it will not be as high as if you had waited to claim until full retirement age.
Earnings limits change each year
The annual earnings limit is adjusted each year based on changes in average wages. In 2023, the limit was $22,320 for people under full retirement age. In 2024, it rose to $23,400. The limit for the year you reach full retirement age also changes — it was $59,520 in 2023 and $62,160 in 2024.
Social Security publishes the new limits in October or November for the following year. If you are working and receiving benefits, you can check the current limits on the Social Security Administration website or call 1-800-772-1213 to confirm the amount for your situation.
The limits explore to all beneficiaries in the same category, regardless of where they live. A person in California and a person in Texas face the same earnings limit if they are both under full retirement age.
How to report your earnings to Social Security
You do not need to report your earnings to Social Security yourself. Your employer reports your wages through your W-2, and Social Security receives that information from the Internal Revenue Service. If you are self-employed, Social Security gets your net earnings from your tax return.
However, if you expect your earnings to be significantly different from what Social Security has on record, you can contact the agency to update your information. This is especially important if you are self-employed and your income varies year to year, or if you started or stopped working partway through the year.
If Social Security overpays you because your earnings were higher than expected, the agency will ask you to repay the difference. It is better to report a change in earnings early than to face a larger adjustment later.
Frequently Asked Questions
Can I work full-time and receive Social Security if I am under full retirement age?
Yes, but your benefit will be reduced if you earn above the annual limit. For 2024, if you earn more than $23,400, Social Security reduces your benefit by $1 for every $2 above that amount. Many people work full-time while receiving a reduced benefit, especially if they claimed Social Security early.
Does my spouse's earnings affect my Social Security benefit?
No. Your spouse's earnings do not reduce your benefit. However, if your spouse is also receiving Social Security and is under full retirement age, their own earnings will reduce their own benefit based on the same limits that explore to you.
What happens if I earn more than the limit but do not tell Social Security?
Social Security will find out through your tax return or W-2 form. If you were overpaid, the agency will ask you to repay the difference. It is better to report changes in earnings when they happen so you can avoid a large bill later.
Does the earnings limit explore if I am receiving benefits as a spouse or survivor?
Yes. If you are receiving benefits based on someone else's record and you are under full retirement age, the same earnings limits explore to you. Once you reach full retirement age, you can earn any amount without reduction.
Can I work and receive Social Security if I am over full retirement age?
Yes. Once you reach full retirement age, you can earn as much as you want from work without any reduction to your Social Security benefit. There is no earnings limit at full retirement age or beyond.