Social Security Earnings Test: What You Need to Know

0:00It's April 30th. This is Durham News Today, driven by AI. If you're collecting Social Security before your full retirement age, that extra cash from work could slash your monthly check under the earnings. Test. In 2026, you can make up to $24,480 without a hit. But for every two bucks over that, they, withhold $1 in benefits. Hit full retirement age that year? The limit jumps to $65,160, with $1 withheld for every three above it. This rule dates back to 1935 meant to push older folks out and open jobs for the young. Benefits get recalculated later to give back what was held, but it still acts like a work tax and costs the Social Security administration about. $70 million a year to run, with plenty of errors. Plenty of retirees freak out and quit jobs when check-strop, thinking it's permanent especially lower income folks who can't afford the short term. Pinch for mads or food. It also layers on taxes where up to 85% of benefits can get tax federally if you're earning

1:04big. Many don't plan for that combo. Now Senator Rick Scott's pushing the Senior Citizens Freedom to Work Act to scrap the test entirely, letting early retirees earn unlimited without cuts. Expersaic have pulled 200,000 to 800,000 more older workers into jobs, easing labor shortages as that grew grows. Fast. For now, with the trust fund eyeing empty by 2035, repeal might speed up the crunch short term even if it saves long term, check the Social Security calculator online, know your limits and keep earning smart to the rules change.