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Goodbye to the $22,320 Social Security retirement earnings test amount: The updated low limit in 2025
If you work while receiving Social Security benefits, the earnings threshold at which the SSA will reduce your payments will change in 2025.
Each year, the Social Secuirty Administration adjusts the level at which the agency will reduce your benefit amount if you earn an an income over a certain level.
Who is affected by the rule?
The Social Security Earnings Test applies to all beneficiaries, including retired workers and their eligible family members, who receive benefits before they reach their Full Retirement Age (FRA). Once one’s FRA is reached, the SSA will not garnish any benefits, and additional income can be earned beyond the threshold. Critically, income from investments is not counted as a part of the calculation made by the IRS; primarily, they are looking at income generated by one’s labor.
January 2025 Social Security Payment Schedule
Social Security
- Wednesday, January 8: SSA will pay those born between the 1st and 10th of any month
- Wednesday, January 15: SSA will pay those born between the 11th and 20th of any month
- Wednesday, January 22: SSA will pay those born between the 21st and 31st of any month.
- Those who have been receiving Social Security benefits since before May 1997 will be paid on Friday, December 3.
Supplemental Security Income
- SSI beneficiares will receive their January payment on Tuesday, December 31, since the 1st of the month is a public holiday.
However, when it comes to income generated by labor, even if work is completed as an independent contractor, you will see your benefit payment reduced.
What is the earnings threshold for 2025?
For 2024, that figure was $22,320 per year or $1,860 per month. Next year, starting in January 2025, recipients with an income over $23,400 per year or $1,950 per month who have not reached their FRA could see their payments reduced.
However, once you reach full retirement age, you will no longer be subject to this test and can generate however much income you wish. Those considering staying in the workforce after they reach their FRA should be aware that the SSA will tax benefits for those with incomes over certain levels.
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