Social Security’s 2027 Earnings Limits: What Changes for Your Side Income

Each October, Social Security announces its numbers for the coming year. Along with the yearly cost-of-living increase, it updates the earnings limits that apply if you work while collecting benefits before full retirement age. The 2027 limits are now out, and they are a little higher than this year’s.

If you’re building a side income to cover a bill, here’s what changes.

The 2027 Earnings Limits

According to the Social Security Administration:

If you’re under full retirement age for all of 2027, the limit is $25,560 a year, up from $24,480 in 2026. For every $2 you earn above it, $1 of benefits is held back.
If you reach full retirement age during 2027, the limit is $67,920, up from $65,160. For every $3 above it, $1 is held back. Only earnings in the months before you reach full retirement age count.
From the month you reach full retirement age, there is no limit at all.

What This Means for a Small Side Income

For most people covering one bill, these limits are far away. A side income that pays a $15 streaming plan comes to about $180 a year. Even covering a $60 phone bill is about $720 a year.

The catch is that the limit counts all your work earnings together. Wages from a part-time job count, and if you work for yourself, your net profit counts. So if you already have a job and add a side income on top, it’s worth adding everything up.

Benefits that are held back aren’t simply lost. Social Security recalculates your payment when you reach full retirement age to credit you for those months. Our guide to the earnings test explains how it works, what counts as earnings, and the special rule for your first year of retirement.

Other Rules to Keep in Mind

The earnings test is about Social Security benefits you collect before full retirement age. SSI works differently, and so do Medicaid and housing help. Each has its own way of counting income, and even small amounts can matter. Our post on SSI, Medicaid and housing help covers what to check.

For what the 2027 cost-of-living increase means for your monthly check, our sister site SeniorsTips has a plain-English guide to the 2027 COLA.

Side income may also need to be reported on your tax return. As always, this is general information. Check Social Security’s page on working while getting benefits or call Social Security about your own situation.