Important Social Security Numbers to Know if You Plan on Working While Claiming Benefits in 2026
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A little-known Social Security rule could cost you some of your checks next year.Working and claiming Social Security at the same time might seem like a great way to boost your standard of living -- and it can be. But it doesn't always pan out that way. A little-known rule called the Social Security earnings test could cost you some of your benefits if you earn more than a certain amount from your job. But this doesn't apply to everyone, and it could have some unexpected benefits down the line. Image source: Getty Images. How the Social Security earnings test works The Social Security earnings test applies to individuals who are working and claiming benefits while under their full retirement age (FRA). This is 67 for most workers today. If you're older than this, you can earn as much as you'd like, and the Social Security Administration won't touch your benefits. If you'll be under your FRA all year, you'll lose $1 for every $2 you earn over $24,480 in 2026 from your job. Those who will reach their FRA in 2026 only lose $1 for every $3 they earn over $65,160 if they hit this limit before their birth month. You may lose entire checks due to the earnings test, depending on the size of your benefit and your current annual income. You might be able to avoid this by reducing your hours to decrease your earnings from your job. Or if you haven't signed up for Social Security yet, you could delay your application until you either retire or reach your FRA.Advertisement It's also possible that you might not have to worry about the earnings test in future years if your income is close to the thresholds mentioned above.
The Social Security Administration typically increases these limits annually. So, you'll be able to earn more in 2027 and beyond before losing any of your checks to the earnings test. You'll get the money back later Money you lose to the earnings test will come back to you as a benefit increase when you reach your FRA. This is a permanent boost, not a one-time payment. How much more you'll get depends on how much you had withheld in past years, but for some, the increase is substantial.
The Social Security Administration should send you a notice outlining how much you'll get once you reach your FRA so you can prepare. Keep in mind that larger Social Security checks could put you at risk of owing federal Social Security benefit taxes. Some states tax the benefits of some of their seniors as well. This continues even after you've reached your FRA. If you're concerned about this, consult an accountant in your state to get an idea of how much you may owe. Then, budget accordingly for the taxes. You can also request that the Social Security Administration withhold money from your benefits for taxes. Any excess withheld will come back to you with your tax refund. In the meantime, while you're subject to the earnings test, you may need to come up with other ways to make ends meet. That might mean relying more heavily on income from your job or personal savings to make up for reduced Social Security benefits. Alternatively, you may be able to reduce your expenses in certain areas. Take some time to develop a strategy that works for you so you're ready when 2026 rolls around. And if you have any questions about your benefits or the earnings test, contact the Social Security Administration for personalized advice.About the AuthorKailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning.
Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.TMFKaileyRead NextDec 14, 2025 •By Dana GeorgeDo You Qualify for Spousal Social Security Benefits?Dec 14, 2025 •By Maurie BackmanRetirees on Social Security Could Be in for a Huge Disappointment in 2026. Here's Why.Dec 14, 2025 •By Christy BieberThis Social Security Filing Tip Is Worth Real MoneyDec 14, 2025 •By Kailey Hagen, CFP3 Big IRA Rule Changes to Watch for in 2026Dec 14, 2025 •By Keith SpeightsAre You Reinvesting Your RMD as a Retiree?
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