The yearly earnings limit for Social Security depends on your age and the year you reach full retirement age. For 2023, the annual earnings limit is $21,240 if you are under full retirement age for the entire year. If you will reach full retirement age in 2023, the limit on your earnings for the months before full retirement age is $56,520. Starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits.

If your earnings will be more than the limit for the year and you will receive retirement benefits for part of the year, there is a special rule that applies to earnings for one year. The special rule lets you receive a full Social Security benefit for any whole month you consider yourself retired, regardless of your yearly earnings. For example, if you are under full retirement age for all of 2023, you are considered retired in any month that your earnings are $1,770 or less and you did not perform substantial services in self-employment. If you reach full retirement age in 2023, you are considered retired in any month that your earnings are $4,710 or less and you did not perform substantial services in self-employment.

If you are under full retirement age for the entire year and make more than the yearly earnings limit, Social Security will reduce your benefit. For 2023, the limit is $21,240. Social Security will deduct $1 from your benefit payments for every $2 you earn above the annual limit.

If you are younger than full retirement age during the whole year, the following table gives you an idea of how much you’ll receive in Social Security benefits for the year 2023, based on your monthly benefits, and estimated earnings:

• If your monthly Social Security benefit is $700 and you earn $21,240 or less, you’ll receive yearly benefits of $8,400.
• If your monthly Social Security benefit is $700 and you earn $22,000, you’ll receive yearly benefits of $8,020.
• If your monthly Social Security benefit is $700 and you earn $24,000, you’ll receive yearly benefits of $7,020.

If you are under full retirement age and you think your earnings will be different than what you previously reported to Social Security, you should contact them as soon as possible to avoid an overpayment or underpayment of benefits.

It is important to note that there is a limit on the amount of your earnings that is taxed by Social Security. This amount is known as the “maximum taxable earnings” and changes each year. For 2023, the maximum taxable earnings is $160,200.