How Do I Get a Copy of a Social Security Earnings Report? | Finance - Zacks

 

social security earnings report

to assist Social Security to effect a salary or an administrative offset or to an agent of SSA that is a consumer reporting agency for preparation of a commercial credit report in accordance with 31 U.S.C. §§ , , and ; and (2) to a. The Social Security Administration uses your highest 35 years of earnings as a cornerstone of the benefit calculation. If any of these 35 years are incorrect or missing altogether, the average is skewed. One year of missing earnings can make a difference of $ per month (or more!) in your benefit amount. If you need to report a change in your expected earnings, you can call the SSA at () or go to your local Social Security office. Special rule for the first year you retireAuthor: Matthew Frankel, CFP.


my Social Security | Social Security Administration


Can social security earnings report work and collect Social Security at the same time? The short answer is yes, it's possible. However, if you haven't reached your full retirement age, the Social Security earnings test could cause the Social Security Administration SSA to withhold some, or even all, of your monthly benefit payments. With that in mind, here's an overview of the Social Security earnings test, how it could affect your benefits, what happens to benefits that are withheld, and all the details you need to know before claiming Social Security when you're planning to keep working.

Americans can claim Social Security benefits as early as age 62 or as late as age However, there's a rule known social security earnings report the Social Security earnings test that prevents certain people from collecting their entire retirement benefit while simultaneously earning money from a job. In a nutshell, the Social Security earnings test applies to people who have applied for Social Security retirement benefits but have not yet reached their full retirement age.

However, there are several different parts of the Social Security earnings test, and some important concepts to understand. Before we get started, the Social Security earnings test that applies to you depends on when you'll reach your full Social Security retirement agealso known as your full retirement age, social security earnings report, or FRA.

So, the information will be useful to you only if you know what your full retirement age is. Many Americans incorrectly believe that their Social Security full retirement age is 65 years old, and for good reason. This was indeed the case for much of the program's history, but no longer in the modern era. For Americans who have yet to reach full retirement age for Social Security purposes, it can be age 66, age 67, or somewhere in between, depending on the year you were born.

With that in mind, here's a quick guide to determining your full Social Security retirement age, so social security earnings report know which part of the Social Security earnings test will apply to you. The most restrictive form of the Social Security earnings test applies to people who have claimed Social Security benefits but won't reach their full retirement age until after the current calendar year, social security earnings report.

In other words, if you'll reach your full retirement age on Jan. Here are a few scenarios:. If you'll reach your full Social Security retirement age duringsocial security earnings report, you're still subject to the Social Security earnings test, but you face a far less restrictive version.

For starters, the income threshold is higher. And the only months social security earnings report are those before the month in which you'll reach full retirement age. In other words, if your full retirement age social security earnings report 66 and your birthday is on Aug. Here's the easy part. If you've already reached social security earnings report retirement age, or you will reach full retirement age during the current calendar month, the Social Security earnings test doesn't apply to you at all.

You are free to earn as much money from working as possible without any effect on your Social Security benefits. In other words, if you'll reach your full retirement age in Januaryit doesn't matter when your birthday is within the month -- the entire month's earnings are exempt from the earnings test.

For quick reference, here's a table about the Social Security earnings test limit and how it applies to you. I've included the limits for reference and to illustrate how these income thresholds increase with inflation over time. In addition to the potential for some or all of your benefits to be withheld because of the earnings social security earnings report, claiming Social Social security earnings report before you reach full retirement age will result in a permanently reduced monthly benefit amount.

Depending on how early you decide to claim benefits, the SSA uses these two rules when reducing your benefit. So in addition to the earnings test, factor this in before claiming Social Security early. First of all, it's important to point out that as the name implies, the Social Security earnings test applies only to earned income. That generally means either income from a job wages, salaries, bonuses or net self-employment income, social security earnings report.

The earnings test doesn't consider investment income such as dividends or capital gains, pensions, annuities, other government benefits, social security earnings report, or any other unearned sources of income. For example, if you claim Social Security social security earnings report also take a distribution from your kthat amount won't count as earnings. Your earned income from a job is considered when it's earnednot necessarily when it's paid to you.

As one possible example, if you earn a bonus social security earnings report your job performance in but don't receive it untilit will be counted as income.

Or if you're paid in for built-up vacation time you've accrued over the past several years, it won't be counted as income. The exception is self-employment income, which is counted when it's received. If you expect to earn more than your applicable Social Security earnings test limit, it is your responsibility to let the SSA know how much you anticipate earning for the year. Retirement benefit recipients can't yet do this online. If you need to report a change in your expected earnings, you can call the SSA at or go to your local Social Security office.

Because not everyone retires or claims Social Security at the beginning of a calendar year, social security earnings report, the SSA has a special rule that's intended to make sure the earnings test doesn't affect people it shouldn't.

Here's the plain English explanation. If you retire -- meaning you actually stopped working, not just that you claim Social Security -- you can collect your full Social Security benefit for the rest of that year, regardless of how much you've earned, social security earnings report. As an example, let's say you reach age 62 in July and decide to retire. However, because you're retiring, you can collect your entire monthly benefit for the rest of If your benefits are reduced because of the Social Security earnings test, the SSA doesn't withhold money from each of your checks.

Rather, the SSA will withhold all benefit payments until the entire estimated annual withholding amount is met. Here's an example: You've filed for Social Security benefits and will be younger than your full retirement age for all of So your January, February, social security earnings report, and March benefit payments will be withheld.

If your Social Security benefits are withheld because of your earnings before reaching full retirement age, there are two reasons your benefits might grow later. First, when retirement benefits are withheld because of the earnings test, the SSA recalculates your benefit once you reach your full retirement age to account for the months you didn't receive benefits. For example, if you had 12 months' worth of benefits withheld before reaching full retirement age, your monthly benefit after you reach full retirement age will be adjusted upward as if you had waited an additional year.

Second, any earnings while you're working can be factored into the Social Security benefits formula. The current benefit formula is based on your 35 highest inflation-adjusted years of Social Security taxable earnings.

So if your most recent year of earnings is one of your 35 highest, the SSA will automatically recalculate your benefit and increase it accordingly social security earnings report with December of the following year but retroactive to January of that year.

For example, if you've already claimed Social Security but earn a high salary inyour recalculated benefit will be reflected starting in Decemberpaid retroactively to January It's also important to note that the Social Security earnings test doesn't apply only to retirement benefits when the beneficiary earns too much. The earnings test also applies to other people who may be drawing benefits on your work record, such as spousal benefits or survivors benefits.

However, it wouldn't affect survivors benefits payable to your children, unless they earn more than the earnings test limit. If you're not a math person and don't want to do earnings test calculations by hand, don't worry. Some people who earn in excess of the earnings test limits claim Social Security early to boost their income, even though it means some of their benefits will be withheld. Others don't see a point in claiming Social Security early while they're still earning enough to cover their expenses.

However, now that you know the ins and outs of the Social Security earnings test, social security earnings report, you'll be in a good position to make a smart decision for you.

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Social Security Earnings Test Limits | The Motley Fool

 

social security earnings report

 

to assist Social Security to effect a salary or an administrative offset or to an agent of SSA that is a consumer reporting agency for preparation of a commercial credit report in accordance with 31 U.S.C. §§ , , and ; and (2) to a. In the past, the Social Security Administration sent an annual statement of your earnings to you by mail. In , the administration discontinued this service to workers younger than age However, you can still access a basic earnings report for free online or request one by mail. If you need to report a change in your expected earnings, you can call the SSA at () or go to your local Social Security office. Special rule for the first year you retireAuthor: Matthew Frankel, CFP.