Retirees who earn money through side work face two separate Social Security rules: the IRS combined-income formula determines whether up to 50% or 85% of benefits becomes taxable, while the Social Security Administration’s earnings test can temporarily withhold payments from people claiming benefits before full retirement age. For single filers, combined income above $25,000 can make up to half of benefits taxable, while income above $34,000 reaches the 85% tier. The corresponding thresholds for married couples filing jointly are $32,000 and $44,000. Those limits have not changed since the 1980s, causing more beneficiaries to enter taxable territory as benefits and other income rise. In 2026, beneficiaries below full retirement age lose $1 in benefits for every $2 earned above $24,480. In the year they reach full retirement age, the threshold rises to $65,160, with $1 withheld for every $3 above the limit before their birthday month. There is no earnings limit after full retirement age, and withheld benefits are later reflected in a recalculated monthly payment. A first-year monthly test can allow benefits for months considered retired, but self-employment hours count as well as income. The 2027 cost-of-living adjustment is tracking toward 3.1%, although the final figure has not been set.