Social Security Withholds $1 per $2 Above $24,480 for Early Claimers Still Working
Updated
Updated · Yahoo Finance · Jul 27
Social Security Withholds $1 per $2 Above $24,480 for Early Claimers Still Working
3 articles · Updated · Yahoo Finance · Jul 27
Summary
Workers who claim Social Security before full retirement age can lose part of their monthly benefit if job income crosses the earnings-test threshold.
In 2026, the rule withholds $1 in benefits for every $2 earned above $24,480 for people under FRA all year; for those reaching FRA this year, it withholds $1 per $3 above $65,160 before their birth month.
Those reductions can wipe out entire months of checks, creating a budget gap for people expecting both wages and full Social Security benefits.
Withheld benefits are partly offset by a one-time increase once a claimant reaches FRA, but checks still remain lower than if the person had waited until FRA to file.
The practical takeaway is that higher-earning workers still employed may benefit from delaying a claim, while each month of waiting raises benefits up to age 70 and the earnings test disappears after FRA.