Earnings Test
Understanding Social Security Earnings Test Thresholds and Annual Limits
Verified against SSA POMS as of September 8, 2026
The short answer
Earnings Test Thresholds determine the amount of annual earnings at which your Social Security benefits are reduced. For individuals under full retirement age, $1 in benefits is deducted for every $2 earned above the limit. In the year of full retirement age, $1 is deducted for every $3 above a higher limit.
Annual Earnings Test Description
The Annual Earnings Test (AET) applies when an individual receives Social Security retirement or survivor benefits before reaching full retirement age and has earnings from work above the applicable annual exempt amount.
There are two annual earnings limits:
- * One for individuals who are under FRA for the entire year.
- * A higher limit for individuals who reach FRA during the year. In that year, only earnings before the month FRA is reached are considered.
Beginning with the month FRA is reached, the earnings test no longer applies.
RS 02501.021RS 02501.025 View source ›2026 Annual Earnings Test Limits
For 2026, the annual earnings test limits are:
| 2026 Earnings Test | Annual Limit | Benefits Withheld |
|---|---|---|
| Under FRA for the entire year | $24,480 | $1 for every $2 above the limit |
| Reaches FRA during 2026 | $65,160 | $1 for every $3 above the limit |
| Beginning with month FRA is reached | No limit | Earnings test no longer applies |
For an individual reaching FRA during 2026, the $65,160 limit applies only to earnings received before the month FRA is reached. Earnings beginning with the month FRA is reached are not subject to the earnings test.
The annual exempt amounts are adjusted based on changes in national average wages and are updated each year.
RS 02501.025 View source ›What Earnings Count Toward the Earnings Test?
The earnings test applies to earned income, including:
- * Wages from employment; and
- * Net earnings from self-employment.
Bonuses, commissions, and vacation pay can also count as wages.
Income that is not earned from working does not count toward the earnings test. This includes pensions, annuities, investment income, interest, and other government or military retirement benefits. IRA distributions also do not count because they are not earnings from work.
RS 02501.021Special Monthly Earnings Test
The Monthly Earnings Test (MET) may allow an individual to receive benefits for certain months even when total earnings for the year exceed the annual earnings limit. This rule is especially important when someone retires in the middle of the year after already earning more than the annual limit.
For 2026, the monthly exempt amounts are:
- * $2,040 per month for an individual under FRA for the entire year.
- * $5,430 per month for an individual reaching FRA during 2026.
For self-employed individuals, SSA also considers whether the individual performs substantial services in self-employment when determining whether a month qualifies.
RS 02501.030Benefits Withheld Due to Excess Earnings
When earnings exceed the applicable annual limit, SSA withholds benefits based on the applicable $1-for-$2 or $1-for-$3 formula.
Benefits withheld because of the earnings test are not permanently lost. When the individual reaches FRA, SSA adjusts the benefit's reduction factor to give credit for months in which benefits were fully or partially withheld because of excess earnings. This can result in a higher monthly benefit beginning at FRA.
Beginning with the month FRA is reached, the earnings test no longer applies regardless of how much the individual earns.
RS 02501.021Frequently asked
What if I retire in the middle of the year after already earning more than the annual limit?
The Monthly Earnings Test may allow full benefits to be paid for qualifying months after retirement even though total earnings for the year exceed the annual limit. This rule is particularly important in the first year of retirement.
If I reach FRA during the year, does SSA count all of my earnings for that year?
No. In the year FRA is reached, SSA counts only earnings received before the month FRA is reached. Beginning with the month FRA is reached, there is no earnings limit.
Does the earnings test apply to survivor benefits?
Yes. The earnings test can apply to survivor benefits received before the individual's retirement FRA. For earnings-test purposes, SSA uses the individual's retirement FRA, even when the individual's survivor FRA is earlier.
Does the earnings test apply to IRA withdrawals, pensions, or investment income?
No. The earnings test applies to earnings from work, including wages and net earnings from self-employment. IRA distributions, pensions, annuities, investment income, and interest do not count toward the earnings test.
Does the earnings test apply after FRA?
No. Beginning with the month FRA is reached, the earnings test no longer applies regardless of how much the individual earns.