Retirement Social Security

5 Hidden Social Security Traps That Could Shrink Your 2026 Check

Hidden rules could quietly cut your 2026 Social Security check.

By David Maina

Edited by Laura Hohenstein

Updated Nov. 14, 2025

Many retirees expect their 2026 Social Security check to rise smoothly with the 2.8% cost-of-living adjustment. But a few hidden traps could quietly erase that raise. A spike in income or an error on your earnings record, for instance, can shrink your monthly deposit without warning.

This article flags some surprising retirement mistakes, shows how each one cuts your net payment, and gives you simple steps to avoid them so more of that raise stays with you.

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Working before full retirement age (earnings limit)

If you start Social Security before full retirement age (FRA), about 66–67, depending on your birth year, your benefit comes with a catch. The earnings test limits how much you can earn from work before part of your benefit is withheld.

In 2026, the annual limit is $24,480 for people who haven't yet reached FRA. Earn even $1 over that, and the Social Security Administration (SSA) will withhold $1 in benefits for every $2 earned above the limit.

In the year you reach FRA, the higher limit is $65,160, and the withholding rate is $1 for every $3 over that amount, up to the month you hit FRA. After you reach FRA, there's no earnings limit.

Until then, though, working too much can erase much of your Social Security income, at least temporarily. A smart move would be to track your earnings during the year so you don't cross the line by accident and end up with a smaller check than expected.

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Surprise Medicare premiums (Part B & IRMAA)

One hidden drain on your Social Security check comes from Medicare deductions. In 2026, the standard Medicare Part B premium is projected to jump to $206.50 (from $185 in 2025). That alone can eat about $21 of the average COLA increase.

Higher-income households can lose even more to IRMAA (Income-Related Monthly Adjustment Amount), an income-based surcharge. It's triggered when your modified adjusted gross income (MAGI) from two years earlier crosses certain thresholds.

These surcharges are automatically deducted from your Social Security deposit, so your monthly benefit shrinks before you even see it.

To avoid being blindsided, watch your income mix. A single large IRA withdrawal, Roth conversion, or asset sale can push you over the line. Spreading income over several years or staggering conversions can keep you below the trigger.

Taxes on your Social Security benefits

One of the easiest traps to overlook is taxation on your Social Security income. The IRS uses your combined income to decide how much of your benefit to tax. Your combined income is your adjusted gross income (AGI) plus half of your Social Security benefits plus any tax-exempt interest.

For single filers:

Over $25,000 combined income: up to 50% of benefits taxable.
Over $34,000: up to 85% taxable.

For married filing jointly:

Over $32,000 combined income: up to 50% taxable.
Over $44,000: up to 85% taxable.

To reduce the tax bite, plan ahead. Estimate your taxes early each year and consider strategies like Roth conversions or qualified charitable distributions to lower your taxable income.

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Filing too early for benefits

It can be tempting to start collecting Social Security at age 62, especially if you're eager to stop working or need the extra income. But claiming early locks you into a permanently smaller check, and that reduction lasts for life.

Social Security reduces your benefit for every month you file before full retirement age. The formula cuts 5/9 of 1% per month for the first 36 months early and 5/12 of 1% per month beyond that. For someone with an FRA of 67, claiming at 62 means a 25–30% reduction.

In contrast, every month you wait after FRA adds roughly two-thirds of a percent to your check, about 8% per year, until age 70. Even a short delay can raise your income by tens of dollars each month for life.

If you've already taken early benefits and now realize it was a mistake, there's still one limited fix. Within 12 months of claiming, you can withdraw your application, repay what you've received, and restart later at a higher rate.

Errors or omissions in your earnings record

Your benefit comes from your 35 highest-earning years, adjusted for inflation. If a year is missing or wrong in SSA's system, your average drops, and so does your check. A typo, a missing W-2, or an unreported job can cut your payout for life.

To avoid this, try to perform a quick audit each year:

Log in to my Social Security and open your Earnings Record.
Match every year's amount to your W-2s/1099s and tax returns.
If something's off, gather proof (W-2s, 1099s, pay stubs, employer letters, tax returns/Schedule SE).
Contact SSA or visit a local office to request a correction.

Fixing problems is easier the sooner you catch them, and solid documents help SSA update the record. One clean-up can raise your future benefit, so the hour you spend checking your earnings each year can be worth it.

Bottom line

Even a solid 2.8% COLA won't guarantee a bigger 2026 check if small mistakes eat away at your benefit. The good news is you can prevent most of these surprises with simple checks.

Track your income, review your Social Security statement each year, and understand how your work or tax decisions affect your benefits. It's the kind of routine that protects your benefit and helps you avoid running out of money in retirement.

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