Neal Caffrey

Social Security Earnings Limit Calculator

Calculators

Earnings Test Calculator (2026)

Your gross monthly benefit amount.
Wages, bonuses, and net self-employment income.
$24,480

Benefit Impact

Annual Amount Withheld $0 SSA withholds $1 for every $2 over limit
Estimated Checks Stopped 0 Months SSA withholds full checks until debt is paid.
Net Annual Benefit Payable $0 Total benefits you will actually receive this year.
Note: Because your withheld amount is not an exact multiple of your monthly check, you will receive a partial “remainder check” later in the year.
Important: The Earnings Test only applies to wages and net self-employment income, not pensions, interest, or dividends. Once you reach Full Retirement Age (FRA), the limit disappears, and you can earn unlimited income without penalty. Withheld benefits are not “lost” forever; SSA recalculates and increases your monthly benefit at FRA to account for months withheld.

What Is the Social Security Earnings Test?

The Social Security earnings test applies if:

  • You are receiving retirement benefits
  • You have not yet reached Full Retirement Age (FRA)
  • You earn wages or self-employment income

The test does not apply to:

  • Pensions
  • IRA withdrawals
  • Investment income
  • Interest or dividends

The rules are set by the Social Security Administration (SSA).

Once you reach your Full Retirement Age, the earnings limit disappears. You can earn unlimited income without penalty.

2026 Social Security Earnings Limits

For 2026, the calculator uses these limits:

1) Under Full Retirement Age All Year

  • Annual earnings limit: $24,480
  • Reduction rule: $1 withheld for every $2 over the limit

2) Reaching Full Retirement Age During 2026

  • Higher earnings limit: $65,160
  • Reduction rule: $1 withheld for every $3 over the limit
  • Only income earned before your FRA birthday month counts

3) Full Retirement Age or Older

  • No earnings limit
  • No reduction in benefits

These numbers are built directly into the calculator logic you provided.

How the Calculator Works

The calculator asks for three simple inputs:

  1. Monthly Social Security benefit
  2. Your age status in 2026
  3. Your annual earned income

Behind the scenes, it performs four steps:

Step 1: Calculate Annual Benefit

Monthly benefit × 12

If your monthly benefit is $2,000:

$2,000 × 12 = $24,000 per year

Step 2: Compare Income to the Earnings Limit

If your income exceeds the applicable limit, the calculator determines your excess earnings.

Example:

Income: $35,000
Limit: $24,480
Excess: $10,520

Step 3: Apply the Reduction Formula

If under FRA all year:

$10,520 ÷ 2 = $5,260 withheld

If reaching FRA during 2026:

$10,520 ÷ 3 = $3,507 withheld

The calculator automatically applies the correct formula based on your age selection.

Step 4: Determine Checks Stopped

This is where many people get confused.

The SSA does not reduce each check by a small amount.

Instead, they withhold full monthly checks until the required amount is recovered.

Example:

  • Monthly benefit: $2,000
  • Required withholding: $5,260

$5,260 ÷ $2,000 = 2.63

SSA will stop 3 full checks, totaling $6,000.

Since that is more than needed, you would likely receive a partial remainder check later.

The calculator detects this and displays a warning when it applies.

What the Results Mean

After clicking “Calculate Reduction,” the tool displays:

1. Annual Amount Withheld

How much Social Security will temporarily hold back.

2. Estimated Checks Stopped

How many full monthly payments may be paused.

3. Net Annual Benefit Payable

What you will actually receive this year.

If your income is high enough, the calculator also warns you if all 12 checks may be withheld.

Important: Withheld Benefits Are Not Lost

This is the part most people miss.

Money withheld under the earnings test is not gone forever.

When you reach Full Retirement Age, the SSA recalculates your benefit and increases your monthly payment to account for months that were withheld.

In simple terms, the system adjusts your lifetime payout.

The earnings test is a delay, not a permanent loss.

Common Mistakes to Avoid

Counting the Wrong Income

Only include:

  • Wages
  • Bonuses
  • Net self-employment income

Do not include:

  • Pensions
  • Rental income
  • Investment gains

Forgetting the Birthday Rule

If you reach FRA during 2026, only earnings before your birthday month count toward the higher limit.

Assuming Partial Reductions

SSA stops full checks. The calculator correctly accounts for this.

Who Should Use a Social Security Earnings Limit Calculator?

This tool is especially helpful if you:

  • Retired early but returned to work
  • Plan to work part-time while collecting benefits
  • Are approaching Full Retirement Age
  • Want to estimate cash flow for 2026

It gives a realistic preview of how working may affect your benefit payments.

Simple Example Scenario

Let’s walk through a full example.

  • Monthly benefit: $1,800
  • Annual income: $40,000
  • Under FRA all year

Step 1: Annual benefit
$1,800 × 12 = $21,600

Step 2: Excess income
$40,000 − $24,480 = $15,520

Step 3: Reduction
$15,520 ÷ 2 = $7,760 withheld

Step 4: Checks stopped
$7,760 ÷ $1,800 = 4.31

SSA would likely stop 5 full checks.

Net benefit received:
$21,600 − $7,760 = $13,840

The calculator automates all of this in seconds.

Why This Calculator Matters

The earnings test often surprises people.

Someone may think:

“I’m only earning a little extra.”

But crossing the limit by even a few thousand dollars can pause multiple checks.

Using a calculator helps you:

  • Plan work hours
  • Decide whether to delay benefits
  • Estimate year-end cash flow
  • Avoid unexpected payment pauses

It turns a complicated federal rule into a clear answer.