Earnings Test
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The earnings test was devised by the United States Social Security Administration to limit the earnings for workers 62 to 65 that will determine the amount of Social Security benefits received
[edit] Eligibility
The test only applies to people who are below the Normal Retirement Age, which ranges from 65 to 67 years old, depending on the person's year of birth. A person earning over the lower limit bracket but less than the upper limit bracket loses $1 in benefits for every $2 in wages, while a person earning over the upper limit bracket loses $1 in benefits for every $3 in wages.[1] A person is not eligible if he is at the retirement age, is under the Normal Retirement Age but has disability payments, or is living outside of the United States and their work is not covered by Social Security.[2]
[edit] Earnings Test Table
The following table determines what bracket people under the Normal Retirement Age fall under spanning several years.
| Year | Lower Amount ($) | Upper Amount ($) |
|---|---|---|
| 2000 | 10,080 | 17,000 |
| 2001 | 10,680 | 25,000 |
| 2002 | 11,280 | 30,000 |
| 2003 | 11,520 | 30,720 |
| 2004 | 11,640 | 31,080 |
| 2005 | 12,000 | 31,800 |
| 2006 | 12,480 | 33,240 |
| 2007 | 12,960 | 34,440 |
[edit] References
- ^ Retirement Earnings Test. Social Security Administration (October 18, 2006). Retrieved on 2007-03-08.
- ^ Social Security Handbook. Social Security Administration (September 27, 2005). Retrieved on 2007-03-08.
