Social Security: What the Agency counts as earnings while on retirement benefit payments in 2024/2025

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Seniors are finding it very difficult to make ends meet due to inflation and the rising cost of living. Your Social Security benefits might not be enough to pay your bills if you have no other sources of income, investments, or savings accounts.

For this reason, many retirees must go back to work while they are getting benefits. Your payout amount might be lowered, though, if your income exceeds the cap and you haven’t attained full retirement age yet.

What Social Security counts as earnings

Only the pay you now earn from your employment is included. Naturally, the SSA will take your net income into account if you work for yourself.

The Agency also covers commissions, incentives, and vacation compensation. Therefore, you must include all of your salaries, or net profits, along with the previously described factors when utilizing a to determine the amount of your reduction.

Your employment and taxes may result in an increase in your Social Security benefits, even if you have not reached full retirement age and your earnings exceed the limits.

What Social Security does not count as earnings

We already know that when assessing whether you are over the limitations while working and receiving benefits, the Social Security Administration takes into account your income, net profits, commissions, bonuses, and vacation money.

Nevertheless, wages will not be taken into account by the Social Security Administration:

  • pensions
  • annuities
  • investment income
  • interest
  • veteran benefits
  • other government retirement benefits
  • other military retirement benefits

Retirees who need to report a change in earnings to SSA

For your information, you should record any changes in your earnings if you are under and receiving Social Security benefits. Maybe you had a certain amount in mind, but it ended up being more or less. To accomplish this, contact SSA between 8:00 a.m. and 7:00 p.m., Monday through Friday, at 1-800-772-1213 (TTY 1-800-325-0778).

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