how much money can you make on social security

how much money can you make on social security

Determining how much money you can make on Social Security requires considering several factors and nuances. Here’s a comprehensive breakdown:

Your Age and Retirement Age:

  • Below Full Retirement Age (FRA): If you’re younger than your FRA, which is 67 for most people born in 1960 or later, earning limits apply before you receive full benefits:
    • 2024, under FRA all year: Your annual earnings limit is $22,320. Anything above that reduces your benefits by $1 for every $2 earned.
    • Reaches FRA in 2024: The limit is $59,520 until the month you reach FRA. Then, no limit applies for the rest of the year.
  • At or above FRA: Once you reach your FRA, there’s no limit on how much you can earn while receiving full Social Security benefits.

how much money can you make on social security

Your Benefit Amount:

  • Your monthly benefit amount depends on your lifetime earnings and when you start receiving benefits. Early claimants (before FRA) receive permanently reduced benefits, while delaying benefits beyond FRA increases your monthly amount.

Additional Points:

  • Earnings Types: Only wages from work or net earnings from self-employment count towards the earnings limit. Passive income like investments or rental income doesn’t affect benefits.
  • Tax Withholding: If you’re under FRA and exceed the earnings limit, Social Security may withhold part of your benefits to avoid future overpayments. This withheld amount will be paid back later.
  • Disability and SSI: Different rules apply to Social Security Disability Income (SSDI) and Supplemental Security Income (SSI). They have their own earning limits and eligibility criteria.

Resources for Complete Information:

Remember, understanding your specific situation and eligibility is crucial for accurately estimating your Social Security income. Don’t hesitate to contact the Social Security Administration for personalized guidance or utilize their online tools and resources for further information.

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