Social Security Earnings Limit 2026 Sets $24,480 Before Benefit Cuts
People claiming benefits before full retirement age can earn up to $24,480 in 2026 before the social security earnings limit 2026 triggers withholding. For anyone born in 1960 or later, full retirement age is 67, and once that birthday arrives the earnings test ends.
The test takes $1 in benefits for every $2 earned above the $24,480 limit. A $50,000 consulting income would sit $25,520 over that threshold and would cost roughly $12,760 in withheld benefits for the year if earned before full retirement age.
2026 Earnings Test
The 2026 exempt amount applies only before full retirement age. Social Security says the calendar-year amount rises to $65,160 in the year someone reaches full retirement age, and only earnings from months before the birthday count under that rule.
That creates a different result for people approaching 67. In the year they reach full retirement age, the test still applies, but on a higher limit and with a softer formula: $1 in benefits for every $3 earned above the limit.
Age 67 And Beyond
Once full retirement age starts, the earnings test disappears entirely. A person can earn $50,000, $500,000, or $5 million from self-employment after reaching full retirement age and not have any Social Security check withheld.
That makes the timing of extra work the main issue, not the amount alone. The same consulting pattern used in the example — roughly 20 hours a week at around $50 an hour — produces about $50,000 a year layered on top of Social Security and portfolio withdrawals.
Withheld Benefits Repaid
Benefits withheld under the test are not lost for good. Social Security recalculates them after full retirement age and credits them back through a higher monthly payment.
For someone weighing encore work while collecting benefits, the practical choice is simple: stay under $24,480 before full retirement age, or be ready for withholding until the higher post-FRA rules take over. The calendar-year shift to $65,160 gives near-retirees more room, but only for wages earned before the birthday that ends the test.
