A Guide to Your Social Security
An interactive tool to help you understand your benefits and earnings.
The Big Picture: Three Key Things to Know
Your Full Retirement Age (FRA) is 67
This is the age you can receive your full benefit with no limits on what you can earn. Since you're starting before age 67, special earnings rules apply.
The Earnings Test Isn't a Tax
If you earn over the limit, some benefits are temporarily withheld. This money is not lost forever. It's credited back to you as a higher monthly payment after you reach your FRA.
How Payments Work
Social Security pays one month behind. A benefit for September arrives in October.
2025 Simulator: The "Monthly Rule"
In your first year, you get a check for any month your earnings are **$1,950 or less**. Enter your estimated monthly earnings (wages + tips) below to see what happens.
Your 2025 Benefit Status:
- September Check: Paid
- October Check: Paid
- November Check: Paid
- December Check: Paid
Total 2025 Benefits Received:
$5,200
2026 Simulator: The "Annual Rule"
After your first year, an annual limit applies (est. **$23,400** for 2026). For every $2 you earn over this limit, $1 in benefits is withheld. Use the slider to see the impact.
$23,400
With earnings of $23,400, you are not over the limit. You would receive your full $15,600 in benefits.
2027 & Beyond: Getting Your Money Back
When you reach your Full Retirement Age (FRA) in September 2027, the earnings limit disappears for good. More importantly, Social Security permanently increases your monthly check to give you credit for any benefits withheld earlier. This is called an "Adjustment of the Reduction Factor" (ARF).
Your Payback Calculation (ARF)
Based on the simulators, here's your estimated adjustment:
2025 Withheld
$0
2026 Withheld
$0
Total Withheld
$0
This results in a permanent monthly increase of:
+$0.00
Your new estimated monthly benefit starting at FRA will be:
$1,300.00
What Happens in 2027 Before Your Birthday?
In the year you reach FRA, a much higher earnings limit applies to the months before your birthday month. For Jan-Aug 2027, you can earn up to an estimated **$62,160** without benefits being withheld. If you go over that, they only withhold $1 for every $3 earned.
What About Cost-of-Living Adjustments (COLA)?
Each year, Social Security benefits usually increase to keep up with inflation. This is the COLA. Your new benefit amount calculated above will also increase by any COLAs announced for 2026 and 2027, making your final check even higher.
Will My Benefits Be Taxed?
Federal tax on benefits depends on your "Combined Income." Enter your annual income details below to estimate if your benefits will be taxable and what your rough tax bill might be.
Not Likely Taxable
Your estimated Combined Income of $0 is below the $25,000 threshold for a single filer. Your Social Security benefits are likely not subject to federal income tax.
Estimated Federal Tax
Your total taxable income is low enough that after the standard deduction, you likely owe no federal income tax.
$0
*This is a rough estimate for informational purposes only. Consult a tax professional for advice. Does not include state taxes.
Key Reminders
What Counts as "Earnings"?
This is very important for the earnings test.
- ✔ Wages from a job
Money you are paid for working. - ✔ Reported tips
Must be reported to your employer to count for Social Security and taxes. - ✔ Net self-employment earnings
Profit from your own business.
What Does NOT Count?
This income does not affect the earnings test.
- ✖ Pension payments
- ✖ IRA or 401(k) withdrawals
- ✖ Investment income
(Interest, dividends, capital gains)
Your To-Do List
- Keep Good Records: As a server, keep a daily log of your tips and report them accurately.
- Plan for 2026: Keep an eye out for the official 2026 annual limit, which will be announced in October 2025.
- Don't Worry: Remember, any withheld benefits come back to you later as a higher monthly payment.