How much is too much? It depends on whether you’ll hit FRA sometime during the year you’re working or not. If you won’t hit FRA at all, then in 2022, you’ll lose $1 in benefits for every $2 earned above $19,560. If you’ll hit FRA at some time during the year, you’ll lose $1 in benefits for every $3 earned above $51,960.
Entire checks are withheld when you forfeit benefits due to working. For example, if you receive monthly Social Security income of $1,500 and end up losing $3,000 in benefits, you’d get no check for two months. Then, when you reach FRA, you’d be credited back early filing penalties for the months you got no checks. Since this will raise your payment amount, you’ll eventually make back the forfeited benefits in the form of higher monthly income — if you live long enough.
Not everyone breaks even if they forfeit benefits, though. And even if you get more money later, that may not help you now if you find your Social Security checks disappear because of your paychecks.
