The Social Security earnings test enables the government to withhold some seniors' benefits if they earn too much during the year. This only applies to those who claim Social Security under their full retirement age (FRA). That's 66 to 67 for today's workers. If you're over this age, you may work and claim Social Security without fear of losing any of your checks.
If you're under your FRA, the amount you'll lose to the earnings test depends on your age and annual income. In 2023, you lose $1 for every $2 you earn over $21,240 if you'll be under your FRA for the entire year. If you'll reach your FRA this year, you only lose $1 for every $3 you earn over $56,520, assuming you reach this amount before your birthday. In 2024, these limits will rise to $22,320 and $59,520, respectively.
Smaller checks might be disappointing, but it's only temporary. When you reach your FRA, the Social Security Administration recalculates your benefit amount to account for the money it previously withheld due to the earnings test. This gives you larger checks going forward.
However, your checks still won't be as large as someone who waited until their FRA to sign up for Social Security in the first place. That's because the government shrinks your benefit when you claim early. The earnings test may reduce how much you receive from Social Security under your FRA, but you'll still get something, so you'll always wind up with less than someone who never claimed until their FRA.
