The Social Security income limit is how much you can earn in income while collecting Social Security benefits without having your benefits reduced. The income limit applies to those who start collecting Social Security before their Full Retirement Age (FRA) and continue to work. In this post, we will explain in detail the earnings limit for 2022 and the maximum amount you can earn while collecting Social Security.
Also, we will provide an example of how to calculate how much Social Security will deduct from your benefits if you are working and collecting benefits before your FRA.
Can you work and still collect Social Security?
Yes. You can collect Social Security benefits if you are still working.
However, if you earn more than a certain amount from your work, your benefit will temporarily be cut if you have not yet reached full retirement age (FRA).
What Is Social Security Full Retirement Age?
Full retirement age, or FRA, is the age when you are entitled to 100 percent of your Social Security benefits.
Depending on the year you were more, your Social Security full retirement age is between age 65 and 67.
Claiming Social Security benefits before your full retirement age will lower your monthly payments.
This includes Spousal Benefits.
Social Security Income Limits for 2022
Here’s how much Social Security will deduct from your earnings if you work while collecting Social Security before your FRA:
If you are under full retirement age for the entire year, Social Security will deduct $1 from your benefit payments for every $2 you earn above the annual limit.
For 2022, that limit is $19,560.
In the year you reach full retirement age, Social Security will deduct $1 in benefits for every $3 you earn above a different limit.
In 2022, this limit is $51,960.
The limit changes every year, similar to the changes in COLA.
The table below provides a summary of the earnings limit:
| Age | Income | Withholding |
| Under Full Retirement Age | $19,560 | For every $2 over the limit, $1 is withheld from Social Security benefit |
| In the calendar year full retirement age is attained | $51,960 | For every $3 over the limit, $1 is withheld from Social Security benefit |
The maximum amount you can earn while collecting Social Security in 2022
in 2022, the maximum amount you can earn while collecting Social Security is $19,560 if you are collecting benefits and under your full retirement age (see how benefits are calculated).
However, If you will reach full retirement age in 2022, the limit on your earnings for the months before full retirement age is $51,960.
How to Calculate Social Security Income Limit Deductions
Here are two examples of how the Social Security Income Limit deductions work, based on whether you are collecting benefits at Full Retirement or not.
Let’s say in 2022, you are receiving Social Security retirement benefits every month and you:
Are under full retirement age all year
Let’s say you are entitled to $1,500 in Social Security benefits a month ($18,000 for the year).
You work and earn $39,560 ($20,000 over the $19,560 limit) during the year.
Your Social Security benefits would be reduced by $10,000 ($1 for every $2 you earned over the limit).
Therefore, you would receive $8,000 of your $18,000 in benefits for the year. ($18,000 – $10,000 = $8,000)
Reach full retirement age in August 2022
Let’s say you are entitled to $1,500 in Social Security benefits a month ($18,000 for the year).
You work and earn $63,900 during the year, with $52,920 of it in the 7 months from January through July. ($960.00 over the $51,960 limit)
Your Social Security benefits would be reduced through July by $320 ($1 for every $3 you earned over the limit).
You would still receive $10,180 out of your $10,500 benefits for the first 7 months. ($1500 x 7 = $10,500) – $320 = $10,180)
However, beginning in August 2022, when you reach full retirement age, you would receive your full benefit ($1,500 per month), no matter how much you earn in income from your job.
Social Security Income Limit Summary
Here’s the bottom line:
If you collect Social Security early, say at 62, and earn income from work that exceeds the income limit, Social Security will deduct $1 from your benefit payments for every $2 you earn above the annual limit.
For 2022, that limit is $19,560.
In the year you reach full retirement age, Social Security will deduct $1 in benefits for every $3 you earn above a different limit.
In 2022, this limit on your earnings is $51,960.
Questions?
If you still have questions, you should leave a comment below.
However, what may be an even greater help is to join our FREE Facebook members group about Making Sense of Social Security Benefits.
It’s a very active group with some really smart people who love to answer any questions you may have about Social Security Benefits.
Also, from time to time, our team of editors drop in to contribute and answer questions.
Finally, be sure to check out our other articles about Social Security and Disability Benefits, including:
