Those collecting early benefits who earn only slightly more than the annual earnings limit can collect some benefits each year because their penalty is small enough. For example, someone earning $25,000 per year would exceed the 2022 earnings limit by $5440 and, thus, incur a penalty of $2720. That would probably mean about 2 months of withheld benefits, enabling them to get benefits for the remaining 10 months of the year.
Working While Collecting Early Benefits
Ask Rusty – Social Security Matters 7-13-22