Clarifying the Earnings Test Confusion
If you claimed your retirement benefits before reaching your full retirement age and you continue to work, you are likely highly aware of the Retirement Earnings Test. The government limits how much you can earn from an employer or self-employment before they begin temporarily withholding a portion of your Social Security payments. Understandably, working retirees often panic at the thought of a $2,000 payment pushing them over that strict annual limit.
You can breathe easy on this front. The Social Security Administration strictly defines what counts toward the earnings limit: W-2 wages and net earnings from self-employment. The earnings test explicitly excludes investment dividends, pension payouts, IRA withdrawals, capital gains, and government stimulus payments.
A direct check from the Treasury is unearned income. It will not trigger the earnings test, and it will not cause the government to withhold a single dime of your monthly checks, regardless of your age.
If it was going to congress folks they would get it free of any tax or liability. But because its
going to regular citizens we will have to pay…dbl std as usual…e-i-e-i-o.
Wake me up when the funds are in my account.
I can sure use the $2000.00 payment to pay bills.
I welcome a $2,000 bump as a one-time non-taxable event as it will not effect my social security. Just send it as proposed and as promised and stop kicking the can down the road.