The Income Limit That Can Temporarily Reduce Your Social Security Check

We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. Learn more.

Retirement Social Security Share Share Close Mail Page URL https://money.com/social-security-income-limit-reduce-benefits/ Link copied!

The Income Limit That Can Temporarily Reduce Your Social Security Check By: Marc Guberti Marc Guberti Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations. Has also written: Your 2026 Social Security Playbook: 5 Moves to Make Before Filing This Simple Trick Could Increase Your Retirement Income Each Month Why Most Retirees Struggle Without This Simple Bucket Secret The ‘Bridge Strategy’ Retirees Use to Maximize Social Security This Is the New Retirement Reality in 2026 See full bio Published: Mar 9, 2026 4 min read Getty Images Many people claim Social Security when they retire, and use the extra source of income to cover their expenses since they’re no longer receiving a paycheck. You can also start getting your checks and continue to work — though you may end up with lower benefits. That’s because Social Security will withhold a portion of each benefit if your income is above a certain threshold. This reduction only takes place until you reach full retirement age. Here’s what you need to know. Must ReadExperts are Bullish on Gold — Here's How to Get In3 Ways You Can Make Cash on Your CouchThese Are the Best High-Yield Savings Accounts Right Now How Social Security withholding is calculated In 2026, the Social Security Administration will withhold a portion of your benefits if you are younger than the full retirement age — 67, if you were born in 1960 or later — and earn more than $24,480 per year. Once you reach full retirement age, no more withholding takes place, and the administration recalculates your benefits, increasing them to account for the months money was withheld. When you’re under full retirement age, you will have $1 deducted from your Social Security benefits for every $2 you earn above the limit. In the year that you will reach full retirement age, you only get $1 deducted for every $3 you earn above a different threshold, which is $65,160 in 2026. Because your monthly benefit increases after full retirement age, you may end up receiving more total Social Security income over your lifetime, depending on how long you live. Pet Protection: See How Healthy Paws Pet Insurance Can Help Your Dog or Cat Estimate income to avoid unnecessary withholding The amount of withholding that takes place is tied to your income. There’s a good chance that if you’re still working, you’re earning more than the $24,480 limit, especially if they are working a full-time job. While you can switch to a part-time job to reduce your income and reduce withheld benefits, it may be worth delaying Social Security and staying at a full-time job, especially if you need that income source to make ends meet. You can also plan to access your Social Security benefits when you are ready to retire. Working while collecting Social Security can also make a larger portion of your benefits taxable if your combined income rises above certain thresholds.

Gold Investor Kit Offer: Sign up with American Hartford Gold today and get a free investor kit, plus receive up to $25,000 in free silver on qualifying purchases Use the SSA earnings test calculator The Social Security’s earnings test calculator can help you determine about how much of your benefits will be withheld, if any. You can provide your working income and see if it exceeds annual limits. Then, the calculator will show how much of your benefits will be withheld from each check, or whether you won’t face any reductions. The earnings test also accounts for higher earnings limits. The limit is adjusted each year for inflation, which can result in a lower amount of withholding in future years, assuming your income stays the same. Notably, pensions, interest and investment income are not counted in your income for the earnings test. Platinum Savings: Open a savings account with CIT Bank and get 3.75% APY (and it takes only about 5 minutes) Must ReadExperts are Bullish on Gold — Here's How to Get In3 Ways You Can Make Cash on Your CouchThese Are the Best High-Yield Savings Accounts Right Now