You've claimed Social Security before your full retirement age and you're still working, or you've discovered that the benefit itself shows up on your tax return. Both rules have hard numbers, and both are less painful than they first look.
The earnings test: only before full retirement age
Claim before your full retirement age (67 if you were born in 1960 or later) and keep working, and the earnings test withholds part of your benefit once wages pass the year's limit. Only wages and net self-employment income count — not pensions, annuities, interest, investment income, or withdrawals from a 401(k) or IRA.
| Your situation (2025 limits) | Limit | Withheld |
|---|---|---|
| Under full retirement age all year | $23,400 | $1 for every $2 you earn over the limit |
| The year you reach full retirement age | $62,160, counting only earnings in the months before your birthday month | $1 for every $3 over the limit |
| From the month you reach full retirement age | No limit | Nothing |
The limits rise each year; the current ones are on ssa.gov's retirement planner. Social Security withholds the amount in whole monthly checks from the start of the year, then pays the rest of the year normally — so "$1 per $2" shows up as missing months, not smaller checks.
Withheld is not lost
At full retirement age, Social Security recalculates your benefit to credit the months it withheld, as if you had claimed that many months later. Your permanent early-claiming reduction shrinks, and the higher check pays the withheld money back over the rest of your retirement. Earnings after full retirement age never reduce your benefit, and extra years of work can raise it by replacing a low year in your 35-year average (how Social Security works).
How much of your benefit is taxed
Up to 85% of your Social Security benefit is federally taxable, decided by your combined income: adjusted gross income + tax-exempt interest + half of your benefits. The thresholds were set in law and are not indexed for inflation, so more retirees cross them every year.
| Combined income (2025 returns) | Single or head of household | Married filing jointly | Share of benefits included in taxable income |
|---|---|---|---|
| Below the base amount | Under $25,000 | Under $32,000 | 0% |
| Between the two amounts | $25,000 to $34,000 | $32,000 to $44,000 | Up to 50% |
| Above the upper amount | Over $34,000 | Over $44,000 | Up to 85% |
Married filing separately while living with your spouse: up to 85% from the first dollar.
Two ways to keep the tax from ambushing you
- Have tax withheld from the benefit. File Form W-4V with Social Security (or change it in your my Social Security account) and choose 7%, 10%, 12% or 22% of each payment — the same idea as withholding from a paycheck.
- Use the senior deduction while it lasts. For 2025 through 2028, if you're 65 or older you get an extra $6,000 deduction ($12,000 for a couple who are both 65 or older), whether or not you itemize, phasing out above $75,000 of modified adjusted gross income ($150,000 joint). At a 12% rate, $6,000 off taxable income is $720 less tax.
Your state has its own rule: some states tax Social Security benefits and most don't — check your state's revenue department.