When entitlement to benefits begins or ends during the year, many people work in months before or after entitlement. Social Security uses a monthly test to consider these earnings. The monthly earnings test provides that a person can receive full benefits for any month in which he or she does not earn wages over one-twelfth of the annual exempt amount and does not perform substantial services in self-employment.

The monthly amount for 2007 is $1,080. Social Security pays benefits in these months regardless of the amount by which the person's earnings exceed the annual exempt amount. Social Security uses the monthly earnings test in the first year that a person does not work over the monthly limit in at least 1 month. Social Security also uses the monthly test for the year benefits end for children (including students) or parents who get benefits because they are caring for a young or disabled child.