The amount of money you can earn while on Social Security in 2023 depends on your age and whether you are receiving retirement or disability benefits.
Retirement benefits
If you are under full retirement age (FRA) and you receive Social Security retirement benefits, you will have your benefits reduced by $1 for every $2 you earn above the annual earnings limit. The annual earnings limit for 2023 is $21,240. If you reach FRA in 2023, the annual earnings limit for the months before you reach FRA is $56,520.
If you earn more than the annual earnings limit, your Social Security benefits will be reduced for that year. The amount of the reduction will depend on how much you earn above the limit. For every $2 you earn above the limit, your benefits will be reduced by $1.
For example, if you are under FRA and you earn $25,000 in 2023, your Social Security benefits will be reduced by $1,880 ($25,000 – $21,240 = $3,760 / 2 = $1,880).
Disability benefits
If you receive Social Security disability benefits, you are allowed to earn a certain amount of money each month without having your benefits reduced. The monthly earnings limit for 2023 is $1,470 for non-blind individuals and $2,460 for blind individuals.
If you earn more than the monthly earnings limit, your Social Security disability benefits will be reduced for that month. The amount of the reduction will depend on how much you earn above the limit. For every $1 you earn above the limit, your benefits will be reduced by $1.
For example, if you receive Social Security disability benefits and you earn $1,600 in a month, your benefits will be reduced by $130 ($1,600 – $1,470 = $130).
Important notes
- If you earn more than the annual earnings limit (or the monthly earnings limit if you receive disability benefits), your Social Security benefits will be reduced for that year (or month). However, you will get back any benefits that were withheld when you file your tax return.
- If you reach FRA in 2023, any benefits that were withheld for the months before you reached FRA will be paid to you in a lump sum.
- If you continue to earn more than the annual earnings limit after you reach FRA, your benefits will not be reduced. However, you will not earn any additional Social Security credits.
How to calculate your earnings limit
You can use the Social Security Administration’s (SSA) online calculator to calculate your earnings limit. To use the calculator, you will need to know your age and whether you are receiving retirement or disability benefits.
Contact the SSA
If you have any questions about your earnings limit, you can contact the SSA at 1-800-772-1213.
