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Excess Earnings - Defined

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

1802. Excess Earnings - Defined

1802.1 What are "excess earnings"?

"Excess earnings" are your earnings that exceed the annual exempt amount. (See §1803).

1802.2 How do excess earnings affect your benefit amount?

If you are younger than full retirement age (FRA) (see §723.5), your excess earnings are subject to a $1 deduction from benefits for each $2 you earn. In the year you reach FRA, you are subject to a different annual exempt amount, and your excess earnings are subject to a $1 deduction from benefits for each $3 you earn.

Last Revised: Sep. 27, 2005


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