Earnings test calculator: working before full retirement age
Claim early and keep working, and part of your benefit is withheld. Enter your benefit and earnings to see how much, and what is left.
$1 withheld for every $2 above the limit. In 2027 the limit is $25,560 ($2,130 a month) before the year you reach full retirement age, and $67,920 ($5,660 a month) in that year — at $1 per $3. Withholding is temporary, not a permanent loss.
Verified 2026-11-07 · SSA 2027 COLA fact sheet
Calculate the withholding
Before the year you reach full retirement age
| Annual earnings from work | Excess over $25,560 | Benefits withheld | Benefit paid for the year |
|---|---|---|---|
| $20,000 | $0 | $0 | $24,000 |
| $30,000 | $4,440 | $2,220 | $21,780 |
| $40,000 | $14,440 | $7,220 | $16,780 |
| $50,000 | $24,440 | $12,220 | $11,780 |
| $60,000 | $34,440 | $17,220 | $6,780 |
| $80,000 | $54,440 | $24,000 | $0 |
Assumes a $2,000 monthly benefit ($24,000 a year). Withholding cannot exceed the benefits payable for the year, which is why the $80,000 case stops at $24,000.
In the year you reach full retirement age
| Annual earnings from work | Excess over $67,920 | Benefits withheld | Benefit paid for the year |
|---|---|---|---|
| $70,000 | $2,080 | $693 | $23,307 |
| $90,000 | $22,080 | $7,360 | $16,640 |
| $120,000 | $52,080 | $17,360 | $6,640 |
In the FRA year the monthly limit applies only to earnings in the months before the month you reach full retirement age. Earnings from the FRA month onward are not tested.
How the withholding is actually applied
The test is not a tax and is not settled on your tax return. SSA withholds from future monthly payments once reported earnings exceed the limit. If you tell SSA at claim time that you expect to earn above the limit, it can reduce payments from the start rather than after the fact. Otherwise an overpayment can be recovered from later checks.
The monthly figures matter for a different reason. Before the FRA year, the annual and monthly limits ($25,560 and $2,130) are the same rule expressed two ways, and the monthly limit is used for a person who stops working mid-year. In the FRA year, the monthly limit is the operative one: it applies to each month before the month of full retirement age, which is why a high earner who reaches FRA in, say, July faces withholding only for January through June.
Why it is not a permanent loss
Benefits withheld under the earnings test are not taken away. At full retirement age, SSA recomputes the benefit to credit the months in which payments were withheld. The result is a higher monthly benefit for the rest of your life, which gradually returns the amount withheld.
What does not count as earnings
Only wages and net self-employment income are tested. A pension, an annuity, an IRA or 401(k) withdrawal, interest, dividends, capital gains, rental income, and Social Security itself are all excluded from the calculation. A retiree with $100,000 of investment income and no job has zero countable earnings and loses nothing to the earnings test.
Net self-employment earnings are counted after business expenses. A self-employed person who shows a loss has no countable earnings for the test. Wages are counted when earned, not when paid, which matters for deferred compensation and for a final paycheck received in January for December work.
Questions
What is the earnings test limit in 2027?
Before the year you reach full retirement age, $25,560 a year ($2,130 a month). In the year you reach full retirement age, $67,920 a year ($5,660 a month), applied only to earnings in the months before the month you reach full retirement age.
Do I lose the withheld benefits permanently?
No. The withheld amount is a deferral, not a forfeiture. When you reach full retirement age, SSA recalculates your benefit to account for the months in which benefits were withheld, so the money is recovered over time through a higher monthly amount.
What income counts toward the earnings test?
Only earned income: wages from employment and net earnings from self-employment. Pensions, annuities, IRA withdrawals, investment income, rental income, and other government benefits do not count, no matter how large they are.
Does the earnings test apply after full retirement age?
No. Once you reach full retirement age, the test ends. You can earn any amount from work with no withholding, and your benefit is not reduced regardless of salary or self-employment profit.