You can work on Social Security, but your benefits may be reduced if you earn above a certain amount

Social Security does not stop you from working. However, if you are under full retirement age and receiving benefits, the Social Security Administration (SSA) reduces your payment by $1 for every $2 you earn above an annual limit. The limit changes each year — in 2024 it is $23,400, but you should check the current year's figure with SSA before taking a job or increasing your hours.

Once you reach full retirement age, you can earn as much as you want without any reduction to your benefits. The rules differ depending on whether you are receiving retirement benefits, Supplemental Security Income (SSI), or disability benefits (SSDI). Each program has its own earnings rules, and the consequences of earning too much vary significantly.

The key is understanding which program you are on and what your full retirement age is — because that date determines when the earnings limit stops applying to you.

Key Takeaways

  • If you are under full retirement age and receiving retirement benefits, SSA reduces your payment by $1 for every $2 you earn above the annual limit, which was $23,400 in 2024.
  • Once you reach full retirement age, you can work and earn any amount without losing benefits.
  • If you receive SSDI, you can earn up to $1,550 per month (in 2024) before your benefits stop, but you have a nine-month trial work period where you can earn any amount without losing benefits.
  • If you receive SSI, your payment is reduced by $1 for every $2 you earn above $65 per month, and this rule applies regardless of your age.
  • You must report your earnings to SSA within 10 days of the month in which you earn them, or you may be overpaid and required to repay the difference.

Earnings limits for retirement benefits before full retirement age

If you are receiving Social Security retirement benefits and have not yet reached your full retirement age, SSA counts your work earnings against an annual limit. For 2024, that limit is $23,400. Any earnings above that amount reduce your benefits by $1 for every $2 you earn over the limit.

The reduction applies only in the year you earn the money. Once you reach full retirement age, the limit no longer applies, even if you earned a large amount in previous years. Your benefits return to the full amount you would have received at full retirement age.

Your full retirement age depends on the year you were born. 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. You can confirm your exact full retirement age on your Social Security statement or by contacting SSA directly.

How SSDI earnings rules work differently

If you receive Social Security Disability Insurance (SSDI), you have more flexibility to work than retirement beneficiaries do. SSA provides a trial work period of nine months during which you can earn any amount without losing your benefits. During this period, SSA counts only months in which you earn $1,050 or more (in 2024) as trial work months.

After your nine trial work months end, you enter an extended may be able to access period lasting 36 months. During this time, if you earn $1,550 or more per month (in 2024), your benefits stop for that month. Once your earnings drop below that threshold, your benefits resume without a new application.

If you continue working and earning above the substantial gainful activity level — $1,550 per month in 2024 — for nine months, your SSDI case closes. You can request reinstatement within five years if your earnings drop again, but you should understand this risk before pursuing full-time work.

SSI earnings rules and the $65 monthly exclusion

Supplemental Security Income (SSI) has the strictest earnings rules. SSA reduces your SSI payment by $1 for every $2 you earn above $65 per month. This $65 exclusion applies regardless of your age and does not increase with inflation — it has remained $65 since 1972.

Because the exclusion is so low, even part-time work can significantly reduce your SSI payment. If you earn $200 per month, SSA counts $135 of that income ($200 minus the $65 exclusion), and your SSI payment drops by $67.50. If you earn $400 per month, your SSI payment drops by $167.50.

SSI also counts unearned income — such as gifts, tax refunds, or payments from family members — against your payment. Work earnings are treated more favorably than unearned income, but the $65 exclusion is still very low compared to the cost of living in most areas.

Reporting your earnings to Social Security

You are required to report your earnings to SSA within 10 days of the end of the month in which you earn them. If you receive retirement benefits or SSDI, you can report by phone, mail, or online through your my Social Security account. If you receive SSI, you must report by phone or in person at your local SSA office — online reporting is not available for SSI.

Failing to report earnings on time can result in an overpayment. If SSA pays you more than you are may have access to to because you did not report earnings, you will be required to repay the difference. SSA can recover overpayments by reducing your future benefits, and if you do not repay, the debt can be referred to a collection agency.

If you are unsure how much you earned in a given month or whether you need to report, contact your local SSA office or call 1-800-772-1213. It is better to report and ask questions than to miss a deadline and face an overpayment later.

What counts as earnings and what does not

SSA counts wages from employment, net income from self-employment, and certain other forms of work income. If you are self-employed, you report your net profit (income minus business expenses), not your gross income. You must keep records of your business income and expenses to report accurately.

SSA does not count certain types of income as earnings. Pensions, investment income, rental income, gifts, and tax refunds do not count toward the earnings limit. Interest and dividends do not count either. However, these forms of unearned income may still affect your SSI payment if you receive it, because SSI has a separate limit on unearned income ($65 per month in 2024).

If you receive in-kind support — such as food or shelter provided by someone else — SSA may count part of that as income for SSI purposes. The rules are complex, and the amount counted depends on the specific situation. If you are receiving help with housing or food and also working, ask SSA how that support affects your payment.

Planning to work: steps to take before you start

Before you take a job or increase your work hours, contact SSA and ask about the earnings rules that apply to your specific situation. Tell them your age, which program you receive (retirement, SSDI, or SSI), and how much you expect to earn. They can tell you whether your benefits will be reduced and by how much.

If you receive SSDI, ask SSA about the Ticket to Work program. This program allows you to work without losing your benefits or your Medicare or Medicaid coverage for a set period, even if you earn above the usual limits. Not everyone qualifies, but if you do, it can remove the risk of losing coverage while you test your ability to work.

Keep detailed records of your earnings from the start. Save pay stubs, invoices, and expense receipts if you are self-employed. These records protect you if SSA questions your reports later and make it easier to report accurately each month.

Frequently Asked Questions

What happens if I earn more than the limit in one month?

Your benefits for that month are reduced based on how much you earned over the limit. If you are under full retirement age on retirement benefits and earn $25,000 in one year, SSA reduces your annual benefits by $800 ($25,000 minus $23,400 equals $1,600; $1,600 divided by 2 equals $800). The reduction is spread across your monthly payments for that year.

Can I work part-time and still receive my full benefit?

Yes, if you earn less than the annual limit. If you are under full retirement age and earn $20,000 per year, your benefits are not reduced. Once you reach full retirement age, you can work full-time and earn any amount without losing benefits. If you receive SSDI, you have a nine-month trial work period where you can earn any amount.

Do I lose my Medicare or Medicaid if I work and earn too much?

Medicare coverage continues regardless of your earnings if you receive retirement benefits. If you receive SSDI, your Medicare continues for at least 93 months after your trial work period ends, even if your benefits stop due to earnings. Medicaid rules vary by state, so contact your state Medicaid office to understand how work affects your coverage.

What if I am self-employed — how do I report my income?

You report your net profit (income minus business expenses) to SSA. Keep receipts and records of all business income and expenses. Report your net earnings within 10 days of the end of the month in which you earned them. If you are unsure how to calculate net profit, ask SSA or a tax professional before reporting.

Can I request a new trial work period if I stop working and then start again?

No. You receive one nine-month trial work period per SSDI case. If you use it, stop working, and then start working again later, you enter the extended may be able to access period instead. However, if your SSDI case closes and you later request reinstatement within five years, you may be may be able to access for a new trial work period under the reinstatement rules.