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If a 62-year-old woman receives Social Security retirement benefits in 2026 and earns $60,480 in wages or net self-employment income, the earnings test could result in up to $18,000 in benefits withheld—assuming she is under full retirement age all year. That does not automatically mean every check will be withheld: whether the full $18,000 exhausts her benefits depends on how much she would otherwise receive for the year.
How the 2026 earnings-test math works
For someone below full retirement age throughout 2026, Social Security’s annual earnings-test limit is $24,480. The agency withholds $1 in benefits for every $2 of counted earnings above that amount. The calculation for $60,480 is:
- Counted earnings: $60,480
- Subtract the 2026 limit: $60,480 − $24,480 = $36,000 over the limit
- Apply the withholding rate: $36,000 ÷ 2 = $18,000
The $18,000 is the maximum amount indicated by this calculation, not a statement of her actual benefit or the number of checks Social Security will withhold. If her benefits otherwise payable for the relevant period total $18,000 or less, they could all be withheld; if they total more, the agency would withhold only part of them.
What income counts toward the $60,480?
The earnings test applies to work income, not every kind of income. For an employee, count wages, including bonuses, commissions and vacation pay. For a self-employed person, count net earnings from self-employment. Pensions, annuities, investment income, interest, veterans benefits, and other government or military retirement benefits do not count toward this test.
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So the calculation is valid only if $60,480 represents counted wages or net self-employment earnings. If that figure includes excluded income, use the eligible work-income amount instead.
Could she actually lose every check?
That depends on her benefit amount and payment timing. The title does not establish her monthly benefit, filing month, or earnings record, so it is not possible to say how many checks would be withheld. Social Security may withhold whole monthly checks until the calculated deduction is met, then pay later checks. An annual withholding calculation and the actual check schedule are related, but they are not the same thing.
Why the first year of benefits can work differently
If she starts benefits or retires partway through 2026, the annual earnings total may not by itself describe whether she can receive benefits for particular months. A special monthly rule can treat a person under full retirement age as retired for a month when earnings are $2,040 or less in that month, subject to additional work-activity rules for self-employed people. This can matter in the first year, especially if earnings are concentrated in months before benefits begin.
Social Security’s guidance on receiving benefits while working explains the monthly rule and withholding. For an individualized estimate, use the agency’s Retirement Earnings Test Calculator, which asks for information such as birth date, estimated earnings, monthly benefit, and whether it is the first year of benefits.
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What if she reaches full retirement age during 2026?
The $24,480 limit and $1-per-$2 rate apply when a beneficiary is below full retirement age all year. If she reaches full retirement age in 2026, a different rule applies: the limit is $65,160, and Social Security counts only earnings before the month she reaches full retirement age. The withholding rate for earnings over that higher limit is $1 per $3. Beginning with the month she reaches full retirement age, there is no earnings limit for this test.
For people born in 1960 or later, full retirement age is 67. Turning 62 in 2026 would generally put a person in that birth group, but a precise determination depends on her birth date.
Withheld benefits are not necessarily gone forever
When a person reaches full retirement age, Social Security recalculates the monthly benefit to account for months in which benefits were withheld because of the earnings test. The withheld amount is therefore not simply a permanent loss of the same amount in cash; the recalculation can raise the benefit going forward.
Working can also affect the earnings record used to calculate benefits. If a later year of earnings replaces a lower year among the years used in the calculation, the monthly benefit may increase. That is separate from the earnings test and does not change the $18,000 arithmetic above.
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How the 2026 limit compares with 2025
| Calendar year and situation | Annual earnings-test limit | Withholding rate |
|---|---|---|
| 2025, under full retirement age all year | $23,400 | $1 per $2 over the limit |
| 2026, under full retirement age all year | $24,480 | $1 per $2 over the limit |
| 2026, reaches full retirement age during the year | $65,160, counting earnings only before the month full retirement age is reached | $1 per $3 over the limit |
The Social Security Administration lists these annual limits in its 2026 COLA Fact Sheet. The 2025 figure is useful only as a comparison; the $18,000 example uses the 2026 limit.
Bottom line for this example
Under the 2026 rule for someone under full retirement age all year, $60,480 in counted earnings produces $18,000 in potential benefit withholding. Whether that means all checks are withheld depends on the benefits otherwise payable, the timing of work and benefits, and whether the special first-year monthly rule applies. The calculation concerns U.S. Social Security retirement benefits; other programs and work outside the United States can have different rules.
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