Tax Tip #291
Social Security Benefits While Working
If you’re under the full retirement age, you can earn up to $24,480 in 2026 through your work before it impacts your Social Security benefits. However, the reduced benefits will come back when you reach full retirement age as an increase in your Social Security benefits to make up for it. The effect of exceeding the $24,480 limit is a $1 deduction from benefits for every $2 you earn in wages above $24,480. For example, if you work and earn $34,480, then you have earned $10,000 more than the $24,480 limit. Thus, your Social Security benefits will be reduced by $5,000
In the year you reach full retirement age, $1 in benefits for every $3 earned above the $65,160 limit is deducted.
When you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn.
If you fall into this situation and would like to find out the amount your social security benefits would be decreased, feel free to contact a team member for assistance.
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