Not affiliated with the US Social Security Administration

The Earnings Test

Excerpted from "Social Security Handbook". See the up-to-date, official Social Security Handbook at ssa.gov.

1801. The Earnings Test

1801.1 How is your amount of benefits generally determined?

Social Security benefits are meant to partly replace earnings you (or your family) lose because of retirement, disability, or death. Therefore, the amount of Social Security benefits you receive each year depends on whether you are fully or partially retired.

1801.2 What is the "earnings test"?

We use the "earnings test," also referred to as the retirement test, to:

  1. Measure the extent of your retirement;

  2. Determine the amount, if any, to be deducted from monthly benefits; and

  3. Measure the work activity of other individuals entitled to benefits on your record and the amount of benefits payable to them.

1801.3 What beneficiaries are not subject to the earnings test?

The earnings test does not apply to you if you are:

  1. Full retirement age (FRA) (see §723.5 for definition of Full Retirement Age);

  2. Entitled to benefits because of a disability; or

  3. Living outside the U.S. and your work is not covered by Social Security. In this case, the "foreign work test" applies as described in §1823.

Last Revised: Sep. 27, 2005


Sponsored Links

Recent Content

Seven Social Security Myths

1. Social Security will cover my income needs

2. It's better to take Social Security benefits early

3. I'll receive full benefits at 65

4. Once I start benefits, I can’t work anymore

5. I won't pay taxes on Social Security

6. Once I start Social Security, I have to continue receiving it

7. My divorce will reduce my benefits

Ads


Sponsored Links

Not affiliated with the US Social Security Administration