The short answer
You can work and collect Social Security at the same time, but if you are under full retirement age, the retirement earnings test can hold back part of your benefit. In 2026, Social Security withholds $1 for every $2 you earn above $24,480. In the calendar year you reach full retirement age, it withholds $1 for every $3 above $65,160, counting only earnings before the month you reach that age. From that month on there is no limit at all. Only wages and net self-employment earnings count; pensions, investment income and retirement account withdrawals do not. The money withheld is not lost: at full retirement age your benefit is recalculated to credit the months that were withheld, so it is higher from then on. In your first year of retirement a monthly limit, $2,040, can let you receive benefits for months you do not work even if you earned more earlier in the year.
Why this matters
Many people claim Social Security in their early 60s and keep working part time, or retire partway through a year. The earnings test does not take money away permanently, but it can stop several monthly checks in a row, which is hard on a budget that counted on them. Knowing how the limits work lets you choose a claiming date, plan your hours, and report your earnings so that withholding does not come as a surprise. This guide covers who the test applies to, the 2026 limits, how withholding is applied and how it is paid back. For how the benefit itself is calculated, see our guide to how much Social Security you will get.
Who does the earnings test apply to?
The test applies to people who receive Social Security retirement, spousal or survivor benefits before their full retirement age and who have earnings from work. Full retirement age is 67 for anyone born in 1960 or later and between 66 and 67 for people born from 1955 to 1959.
It does not apply to Social Security Disability Insurance, which has its own rules about substantial work and trial work months; see our guide to working while on SSDI. Nor does it apply to Supplemental Security Income, which counts earnings in a different way.
What are the 2026 limits?
- Under full retirement age for all of 2026: $1 withheld for every $2 earned above $24,480.
- Reaching full retirement age in 2026: $1 withheld for every $3 earned above $65,160, counting only earnings in the months before the month you reach it.
- From the month you reach full retirement age: no limit and no withholding.
The limits rise each year with national average wages; for 2025 they were $23,400 and $62,160. They are measured against gross earnings, before taxes and deductions, so check the total on your W-2 or your self-employment return rather than your take-home pay.
What counts as earnings?
Only income from work counts: wages from a job and net earnings from self-employment. Wages count in the year they are earned, not when paid, so a bonus for work done last year counts toward last year's limit. Self-employment income counts in the year you receive it, after business expenses.
Pensions, annuities, interest, dividends, capital gains, rental income from property you do not actively manage, and withdrawals from IRAs and 401(k) plans do not count toward the earnings limit. They can, however, make part of your benefit taxable, a separate question covered in our guide to whether Social Security is taxable.
How withholding works
Social Security does not reduce each check a little. It works out how much needs to be withheld for the year and holds back whole monthly payments, usually from the start of the year, until that amount is covered. Any amount withheld beyond what was needed is paid back later.
Example (hypothetical): part-time work at 63
Linda is 63 all year, is due $1,500 a month and expects to earn $34,480 in 2026. That is $10,000 over the limit, so $5,000 must be withheld. Social Security holds back her January, February and March payments, $4,500, and $500 more is covered by holding April's $1,500 payment, which means the extra $1,000 from April is paid back to her afterward. She receives her full benefit from May.
Someone who is 64 and earns $20,000 is under the limit and loses nothing. Want to see what this could mean for your situation? Estimate your Social Security benefit at different claiming ages with our free calculator, then compare it with what you expect to earn.
The special rule for your first year of retirement
In the first year you have a month without significant work, Social Security can also apply a monthly test. You can receive a full benefit for any month in which you earn no more than $2,040 in 2026, or $5,430 in the year you reach full retirement age, and do not perform substantial services in self-employment, even if your total for the year is well over the annual limit.
Example (hypothetical): retiring in midsummer
Tom turns 63 in 2026 and earns $60,000 from January to June, then retires and claims benefits from July. His earnings for the year are far above $24,480, but because 2026 is his first year of retirement and he earns nothing from July on, he can be paid in full for July through December.
For the self-employed, substantial services generally means more than 45 hours a month in the business; fewer than 15 hours is generally not substantial, and hours in between are judged on the facts.
Is the withheld money lost?
No. When you reach full retirement age, Social Security recalculates your benefit to remove the early-claiming reduction for every month in which your benefit was withheld, so you receive more each month for the rest of your life. The recalculation is automatic; you do not need to apply for it.
Example (hypothetical): the recalculation
Sam claimed at 62 with a full retirement age of 67, which cut his benefit to 70 percent. Twelve months of benefits were fully withheld because he kept working. At 67 his benefit is recalculated as if he had claimed 48 months early instead of 60, so it rises to 75 percent of his full amount, plus cost-of-living increases.
Whether that recalculation repays what was withheld depends on how long you live, and it does not help if you need the income now, which is why the earnings test is worth considering before you claim.
What can affect your benefit
- Family benefits: if your spouse or children receive benefits on your record, your excess earnings can reduce their payments too. A spouse's own earnings affect only the spouse's benefit.
- Survivor benefits: a widow or widower under full retirement age who works is subject to the same limits.
- Changing plans: if you expect to earn more or less than you told Social Security, report the new estimate so withholding can be adjusted.
- Leaving a job late in the year: the first-year monthly test can protect the months after you stop working.
Planning around the limits
A few choices make the earnings test easier to live with. Claiming at the start of the month after you stop working, rather than months before, avoids withholding altogether. Reducing hours to stay near the limit can keep every check coming; earning a little over it costs only half of each extra dollar in benefits, which you get back in a higher benefit later. For employees, putting off a bonus does not help, because wages count in the year they are earned.
For the self-employed, net earnings count in the year received, and the monthly test in the first year looks at the hours you put into the business as well as the money. Keep a record of both.
How to report your earnings
When you apply, Social Security asks for your expected earnings for the year. If your plans change, tell it through your my Social Security account or by calling 1-800-772-1213. After the year ends, Social Security compares your estimate with the earnings reported on your W-2s and tax return. If too much was withheld you are paid the difference; if too little was withheld, you may be asked to repay the overpayment. Keep a copy of each estimate you give and each notice you receive.
Common mistakes
- Counting take-home pay instead of gross earnings when comparing with the limit.
- Assuming a pension or IRA withdrawal counts toward the limit; only work income does.
- Not updating the earnings estimate after a raise, leading to an overpayment notice the next year.
- Thinking withheld benefits are gone for good, rather than credited back at full retirement age.
- Forgetting that the earnings test continues until the month of full retirement age, not the birthday year as a whole.
Common questions
Does the earnings test apply after full retirement age?
No. It ends in the month you reach full retirement age. After that you can earn any amount without any benefits being withheld because of work.
Does a pension or investment income count toward the earnings limit?
No. Only wages and net earnings from self-employment count. Pensions, annuities, investment income and retirement account withdrawals do not.
Do I lose the benefits that are withheld?
No. At full retirement age Social Security recalculates your benefit to credit the months that were withheld, which raises your monthly payment from then on.
Does my spouse's income count toward my earnings limit?
No. Only your own earnings affect your own benefit. Your earnings can, however, reduce benefits paid to family members on your record.
Is it ever worth waiting to claim instead of working and claiming?
It can be. If your earnings would cause most of your benefits to be withheld, waiting to claim avoids the withholding and lets your benefit grow, without the paperwork of reporting earnings.
What this does not tell you
The limits rise every year with average wages, so the 2026 figures here apply to 2026 only. Social Security decides what is withheld from the earnings reported to it, and the rules for disability benefits are different.
Our calculator estimates your benefit at each claiming age. It does not model withholding under the earnings test or the recalculation at full retirement age.
Official sources
What you can do next
Estimate your earnings for the year and compare them with the limit for your age. Then estimate your benefit at the ages you are considering, and read about taxes on Social Security, since work can make more of your benefit taxable.
