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Despite exceeding the annual limit by $23,760, your Social Security benefit won’t be reduced as long as any additional monthly earnings are less than or equal to 1/12th the 2023 earnings limit.
If you’re before full retirement age: Those earning more than the earnings limit ($22,320 for 2023) will have $1 withheld from their Social Security benefit for every $2 earned above the limit.
However, there's a different earnings-test limit for people who will be reaching full retirement age in 2025 but aren't there at the start of the year. That limit is $62,160, up from $59,520 in 2024.
For beneficiaries working in the calendar year they reach the Normal Retirement Age, but before they have turned the Normal Retirement Age, current benefits are reduced by $1 for every $3 in wages for earnings over the upper limit bracket. [1] The earnings test does not apply if a person is at or beyond the normal retirement age, is under the ...
In 2020, the Social Security Wage Base was $137,700 and in 2021 was $142,800; the Social Security tax rate was 6.20% paid by the employee and 6.20% paid by the employer. [1] [2] A person with $10,000 of gross income had $620.00 withheld as Social Security tax from his check and the employer sent an additional $620.00. A person with $130,000 of ...
If you're a high earner, some of your income might be exempt from Social Security taxation. There's a maximum level of earnings each year that the SSA will count toward your earnings calculation ...
Data source: Social Security Administration. Chart by author. Here's the maximum possible 2025 Social Security benefit at 62, 67, and 70. Earning a high salary throughout your career is just one ...
The SSA counts wages and net earnings from self-employment toward your earnings limit but doesn’t count pensions, dividends, annuities, IRA distributions, capital gains, or income earned from ...
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related to: ma withholding exemption calculator social security age 62 earnings limit