SSA logo: link to Social Security Online home1802. Excess Earnings - Defined

1802.1 What are excess earnings?

“Excess earnings” are your earnings that exceed the annual exempt amount. (See §1803).

1802.2 How do excess earnings affect your benefit amount?

If you are younger than full retirement age (FRA) (see §723.5), your excess earnings are subject to a $1 deduction from benefits for each $2 you earn. In the year you reach FRA, you are subject to a different annual exempt amount, and your excess earnings are subject to a $1 deduction from benefits for each $3 you earn.

Last Revised: Sep. 27, 2005