What counts as 'earnings' for the Social Security earnings test?

Only wages from employment and net earnings from self-employment. Pensions, annuities, IRA/401(k) withdrawals, RMDs, investment income, capital gains, rental income, and Social Security benefits themselves are NOT counted (SSA POMS RS 02505).

Are withheld benefits gone forever?

No. At full retirement age (FRA), SSA permanently recomputes your primary insurance amount to credit the months of full withholding, actuarially raising your monthly check for life. Over a normal lifespan you generally recover roughly what was withheld.

How does the FRA-year rule work?

In the calendar year you reach FRA, SSA uses a higher exempt amount and a gentler $1-per-$3 withholding, but only counts earnings from months BEFORE you attain FRA. Starting the month you reach FRA there is no earnings test at all — no matter how much you earn.

Does the earnings test change the taxation of my benefits?

No. The earnings test only affects WITHHOLDING of benefits by SSA. Federal taxation of benefits under IRC §86 is a separate calculation based on provisional income — use the Social Security Tax Calculator for that.

Where are the 2026 numbers from?

SSA's Cost-of-Living Adjustment release (October 2025) set the 2026 exempt amounts at $24,480 (under FRA) and $65,160 (FRA year). Both are indexed annually to the national average wage index.

Retirement · Social Security

Working While Collecting Social Security

Estimate the SSA earnings-test withholding for 2026, at the exact exempt amount that applies to your age this year. Withheld months are credited back at FRA — this tool separates the short-term cash impact from the permanent recomputation.

IRS-Sourced

Updated August 24, 2026Reviewed for 2025 & 2026 tax years

Will Social Security withhold my check if I keep working?

Only if you're under full retirement age. In 2026, SSA withholds $1 for every $2 of wages/SE income above $24,480 if you're under FRA all year, or $1 per $3 above $65,160 in the year you reach FRA — counting only pre-FRA-month earnings. Once you reach FRA there is NO earnings test.

2026 under-FRA annual exempt amount: $24,480 ($1 withheld per $2 over).
2026 FRA-year exempt amount: $65,160 ($1 withheld per $3 over, pre-FRA-month only).
Only wages and net self-employment count — pensions, IRA/401(k) withdrawals, and investment income are excluded.
Withheld months are actuarially credited back at FRA as a permanent benefit increase.

Source:SSA POMS RS 02501

Tax year

Age status

Gross monthly Social Security benefit

Annual earned income (wages + net self-employment only)

Month your benefits start in 2026

This is my first year of benefits (SSA special monthly rule)

In the first year you get benefits, SSA pays a full benefit for any whole month it considers you retired, however much you earned for the year — a month you earn $2,040 or less and don't do substantial self-employment work. The yearly excess still counts all of the year's earnings, but it can only be withheld from service months. Benefits for months before your start month aren't paid or withheld.

2026 exempt amounts: $24,480/yr under FRA · $65,160/yr in the FRA year. Source: SSA Cost-of-Living Adjustment release.

Annual benefits withheld

$10,260

≈ 4 full months of benefits

Exempt amount$24,480

Counted earnings$45,000

Excess over limit$20,520

Net benefits received$18,540

Withholding applied at rate $1 per $2. Rule: 20 CFR 404.430(a) — $1 per $2.

SSA POMS RS 02501

The two things this calculator does not do

1. It does not tax your benefits. The earnings test only withholds benefits; federal income tax on Social Security is a separate calculation (up to 85% taxable) driven by provisional income, not by wages alone.

2. It does not credit the FRA recomputation. Every full month of withholding is credited back at FRA as a permanent bump to your primary insurance amount. Over a normal lifespan, most retirees recover roughly what was withheld — the earnings test is a timing mechanism, not a pure penalty.

Related: The 2027 earnings-test thresholds move with the annual COLA. See our 2027 Social Security COLA projection tracker.

Sources & References

Primary references used for this content

SSA POMS RS 02501

Retirement Earnings Test — Overview

SSA's official operating procedure for the earnings test

View on secure.ssa.gov

SSA Publication 05-10069

How Work Affects Your Benefits

Consumer-facing earnings-test guide

View on ssa.gov

SSA COLA Fact Sheet

2026 Social Security Changes

Historical retirement earnings test exempt amounts

View on ssa.gov

20 CFR 404.430

Deductions Because of Excess Earnings

Regulatory basis for the $1-per-$2 / $1-per-$3 rules

View on ecfr.gov

✓4 primary sources; links re-checked on a weekly rotation by the source watcher

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Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.