Working after you start Social Security can affect your monthly payments. In 2026 several updates and clarifications may change how earnings, taxes, and Medicare premiums interact with your benefits.
Social Security 2026 overview: what changed for workers
Start by checking your Social Security statement at SSA.gov or calling 1-800-772-1213. Rules that affect working beneficiaries fall into a few categories: earnings limits, benefit recalculation, taxation, and Medicare coordination.
This guide explains the practical steps to protect your benefits if you plan to work while collecting in 2026. Always confirm details with the Social Security Administration because individual situations differ.
Working while collecting benefits: earnings limits and exceptions
One key issue is the earnings test, sometimes called the retirement earnings limit. In past years, people below full retirement age (FRA) saw benefits reduced if earnings exceeded a limit. In 2026 you should confirm whether the annual limit applies to you and how it is calculated.
If the earnings limit applies, Social Security typically deducts $1 from benefits for every $2 earned above the annual threshold. For the calendar year you reach FRA, the reduction rate generally becomes $1 for every $3 earned above a higher limit until the month you turn FRA.
Who is usually exempt from the earnings limit?
- People who have reached full retirement age (no limit applies after FRA).
- Those receiving disability benefits under Social Security Disability Insurance (different rules apply).
- Workers living outside the U.S. in some countries may have special exemptions.
How benefit recalculation works when you work
When Social Security withholds payments because of earnings, the agency usually recalculates your benefit when you reach full retirement age. That recalculation often gives credit for months when benefits were withheld.
Recalculation can raise your monthly benefit going forward, but it does not restore withheld checks paid earlier. Understanding this trade-off helps you plan whether to keep working or delay claiming more benefits.
Taxes and Medicare: what to expect if you work in 2026
Social Security benefits may be subject to federal income tax depending on your combined income. Working usually increases your taxable income and could raise the share of benefits taxed.
Medicare Part B and D premiums can be affected when your income exceeds certain IRS thresholds. Higher income may trigger higher premiums through IRMAA (Income-Related Monthly Adjustment Amount).
Steps to limit tax and IRMAA impact
- Estimate combined income before you start or increase work hours.
- Consider timing one-time income (like a bonus) in a year when it won’t push you into a higher bracket for premium purposes.
- Consult a tax advisor about withholding and estimated tax payments.
Practical steps if you plan to work while collecting Social Security
Follow these steps to avoid surprises and protect your long-term benefits.
- Check your current Social Security statement online for estimated benefits and the date you reach FRA.
- Ask your employer about projected annual income and whether work is likely to push you over the earnings limit.
- Contact SSA to confirm which rules apply to you in 2026 and to get an estimate of how working will change your monthly benefit.
- Keep records of months you work and income earned; Social Security may need documentation for recalculation.
Social Security can recalculate and increase your monthly benefit when you reach full retirement age if your earlier benefits were reduced for excess earnings. That recalculation does not repay the withheld months but can raise future checks.
Case study: real-world example
Maria is 67 and started Social Security at 66. She picked up part-time consulting in 2026 and expects an extra $18,000 this year. She is past full retirement age, so the earnings limit does not apply to her.
However, Maria’s additional earnings increase her combined income, and she learns her benefits may become partially taxable. She uses SSA’s online tools and talks with a tax advisor to adjust withholding, avoiding a large tax bill when filing in April.
When to delay benefits instead of working
Sometimes delaying benefits is better than collecting while working. If you expect to work for only a short time and you are close to FRA, delaying benefits can increase your monthly payment permanently through delayed retirement credits.
Compare the present value of higher payments from delaying against the income you would receive by collecting early. A financial planner or SSA counselor can run the numbers for your timeline.
Checklist: important questions to answer in 2026
- Have earnings test rules changed for your birth year or FRA date?
- Will current or expected earnings push you over the annual threshold?
- How will additional income affect your federal tax and Medicare premiums?
- Do you need to update withholding, file estimated taxes, or adjust savings withdrawals?
Working while collecting Social Security in 2026 requires planning. Rules about the earnings limit, taxes, and Medicare interaction can change your net benefit. Take time to confirm your specific situation with the Social Security Administration and a tax professional before making decisions.
For official answers and personalized estimates, visit SSA.gov or call your local Social Security office.