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- Earning (5)
- Earned Income Tax Credit (3)
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Earnings Test
From Wikipedia, the free encyclopedia
The earnings test was devised by the United States Social Security Administration to penalize people who enjoy social security benefits yet are still employed.
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 $3 in wages.[1] A person is not eligible if he is at the retirement age, is under the Normal Retirement Age but has disability payments, or is living outside of the United States and their work is not covered by Social Security.[2]
The following table determines what bracket people under the Normal Retirement Age fall under spanning several years.
| Year | Lower Amount ($) | 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 |
- ^ Retirement Earnings Test. Social Security Administration (October 18, 2006). Retrieved on March 8, 2007.
- ^ Social Security Handbook. Social Security Administration (September 27, 2005). Retrieved on March 8, 2007.