Is Working Too Much Costing You Social Security Benefits? What to Do Now.
Key Points
The Social Security earnings test affects beneficiaries who claim checks early while still earning a sizable income from their job.
Sometimes, it costs people their entire benefit checks.
Once you reach your FRA, the Social Security Administration will increase your checks if you lost money to the earnings test in the past.
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You work hard all your life to pay your bills, obviously, but also in the hope of maximizing the future Social Security benefit you qualify for. So it can seem a bit odd to hear that your income from your job might actually hurt your Social Security benefits. But that can be the case for some younger beneficiaries.
There's a little-known rule called the earnings test that costs some seniors their entire checks. It's not always avoidable, but understanding how it works can help you prepare for the reduced benefits and the Social Security boost that could be coming your way in a few years.
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How the Social Security earnings test works
The Social Security earnings test applies to beneficiaries claiming Social Security under their full retirement age (FRA) -- 67 for most workers today -- who earn more than a certain amount from their job in 2026. The amount you'll lose from your checks depends on your age and income.
Those who are under their FRA all year lose $1 for every $2 they earn above $24,480. If you qualify for the $2,079 average Social Security benefit as of March 2026 and you earn more than $74,376 from your job, that means you could lose entire months of benefits.
The situation isn't quite as dire if you'll reach your FRA in 2026. Then, you only lose $1 for every $3 you earn over $65,160. To lose entire $2,079 checks, you'd have to earn $140,004 or more from your job, and you'd have to do it before your birth month.
The earnings test no longer applies once you reach your FRA. After that, you can earn as much as you'd like from your job without it directly affecting your Social Security checks. However, a high income from a job could still raise your provisional income, which could, in turn, increase your risk of owing Social Security benefit taxes.
If you only have a low-earning part-time job, the earnings test may not affect you. But if you expect to lose money to it, it's important to adjust your retirement budget. You may need to withdraw more from retirement savings or earn more from your job to counteract the reduction in your Social Security benefit.
The silver lining
While many seniors would probably prefer that the earnings test didn't exist, there is a silver lining. When you reach your FRA, the Social Security Administration recalculates your benefit and increases your checks to make up for what the earnings test had withheld before.
The exact increase depends on the size of your benefits and how much you had withheld in past years. If you lost entire checks, your benefit boost could be substantial. Check with the Social Security Administration if you're interested in finding out how much this could add to your future benefits.
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