The 2025 earnings limit and how it affects your benefits
If you are under your full retirement age and collecting Social Security, you can earn up to $23,400 in 2025 without losing any benefits. Once you cross that threshold, Social Security reduces your payment by $1 for every $2 you earn above the limit. The month you reach full retirement age, the limit jumps to $62,160 for earnings before that month only — after you hit full retirement age, there is no limit at all.
These numbers change every year because they are tied to national wage growth. The 2025 limit is higher than 2024's $23,060, but the percentage increase is small. If you are still working and receiving benefits, you need to report your expected earnings to Social Security, either when you start benefits or by calling 1-800-772-1213.
The earnings limit applies only to work income — wages, self-employment profit, and bonuses. It does not count investment returns, pensions, annuities, rental income, or interest. Social Security also does not count irregular work bonuses or back pay from previous years.
Key Takeaways
- You can earn $23,400 in 2025 without losing Social Security benefits if you are under full retirement age for the entire year.
- For every $2 you earn above $23,400, Social Security withholds $1 from your monthly payment.
- The limit changes to $62,160 in the year you reach full retirement age, but only for earnings before the month you turn that age.
- After you reach full retirement age, you can earn any amount without any reduction to your benefits.
- Only work income counts toward the limit — pensions, investments, and rental income do not.
How the earnings test reduces your benefits
The math is straightforward. If you earn $25,400 in 2025 and you are under full retirement age, you are $2,000 over the limit. Social Security withholds $1,000 from your annual benefit ($2,000 ÷ 2 = $1,000). If your monthly benefit is $1,500, that $1,000 reduction spreads across the year — you might see $417 withheld from each monthly payment for three months, then full payments resume.
The withholding is automatic. You do not have to ask for it or sign anything. Social Security calculates it based on your reported earnings and adjusts your payment accordingly. If you underestimate your earnings when you start benefits, Social Security will catch the difference when you file your tax return and either reduce future payments or send you a bill.
If you earn significantly more than the limit, Social Security can withhold your entire benefit for some months. This is not permanent — once your annual earnings fall below the threshold or you reach full retirement age, your benefits resume at their full amount.
The year you reach full retirement age
The earnings limit changes in the year you turn your full retirement age. From January through the month before you reach that age, the limit is $62,160 in 2025. Starting the month you reach full retirement age, there is no limit — you can earn any amount.
This higher limit applies only to earnings before the month you reach full retirement age. If you turn 67 in June 2025, the $62,160 limit covers January through May. Beginning in June, you have no earnings limit for the rest of your life.
Social Security counts only the earnings you receive before your full retirement age month, not when you earned the money. If you earned $80,000 in January but do not receive the paycheck until July, and you reach full retirement age in July, only the earnings you actually received before July count toward the limit.
What counts and what does not count as earnings
Work income includes wages from an employer, net profit from self-employment, bonuses, commissions, and vacation pay you receive. It also includes tips you report to your employer and severance pay. If you own a business, only your net profit counts — you subtract business expenses from gross income.
These do not count: pensions and annuities (even if they are work-related), investment income, interest, dividends, capital gains, rental income, royalties, or inheritance. Disability insurance payments, workers' compensation, and unemployment benefits also do not count. If you receive a lump-sum payment for work you did in a previous year — such as a bonus or back pay — it does not count against the current year's limit.
If you are unsure whether a specific payment counts, call Social Security at 1-800-772-1213 before you report it. Misreporting can trigger an overpayment that you will have to repay.
Reporting your earnings to Social Security
You must report your expected earnings when you first start receiving benefits. Social Security uses this estimate to calculate your initial payment. If your actual earnings differ from your estimate, you report the difference when you file your federal tax return — Social Security gets the information from the IRS.
If you think your earnings will change significantly during the year — for example, you plan to stop working or change jobs — contact Social Security to update your estimate. You can report changes by phone at 1-800-772-1213, online at ssa.gov, or in person at your local Social Security office. Updating your estimate can prevent overpayments and reduce the amount you might owe later.
Social Security does not automatically know your earnings. The agency relies on your initial report and then cross-checks against your tax return. If you do not report earnings and Social Security discovers them later, you will owe back the benefits you should not have received, plus interest.
Full retirement age and when the limit no longer applies
Your full retirement age depends on your birth year. If you were born between 1943 and 1954, your full retirement age is 66. If you were born between 1955 and 1959, it ranges from 66 and 2 months to 66 and 10 months. If you were born in 1960 or later, your full retirement age is 67. Social Security's website has a table showing the exact age for your birth year.
Once you reach full retirement age, the earnings limit disappears entirely. You can work full-time, earn six figures, or start a business without any reduction to your Social Security payment. This is true whether you reached full retirement age by waiting or by claiming early and then reaching it later.
If you claimed benefits before full retirement age, your payment amount is permanently reduced — reaching full retirement age does not restore the reduction. But the earnings limit stops applying, so you keep every dollar of your reduced benefit no matter how much you earn.
Frequently Asked Questions
What happens if I earn more than the limit and do not report it?
Social Security will discover the unreported earnings when you file your tax return. The agency will calculate how much you were overpaid, and you will owe that amount back. If the overpayment is large, Social Security can reduce your future benefits to recover it, or send you a bill.
Can I work part-time and still collect Social Security?
Yes. If your part-time earnings stay under $23,400 in 2025 and you are under full retirement age, you receive your full benefit. If you earn more, your benefit is reduced by $1 for every $2 over the limit. Many people work part-time specifically to stay under the threshold.
Does the earnings limit apply if I am on disability instead of retirement benefits?
No. Social Security Disability Insurance (SSDI) has no earnings limit. However, if you earn over $1,550 per month (in 2025), Social Security may determine you are no longer disabled and stop your benefits. The rules are different — contact Social Security to understand how work affects your specific situation.
If I reach full retirement age in June, do I have an earnings limit for January through May?
Yes. From January through May, the limit is $62,160. Only earnings you actually receive before June count. Starting in June, there is no limit for the rest of the year or your life.
Does my spouse's earnings affect my Social Security benefit?
No. The earnings limit applies only to the person receiving benefits. Your spouse's income does not reduce your payment. However, if your spouse also collects Social Security, their earnings are subject to their own earnings limit.