Subject: Earning Test : First year Retired at 62 for a 1099 contractor for limo/van car service driver
Earning Test quagmire and how to respond to the SSA form "Earnings Estimate Form SSA-L9781-SM"

IN 2018 I turned 62 in July 29 2018... I am retired as of AUG 1 2018.
I had to work during Aug Sep to make ends not meet. But I still made less than the 17040 for NET EARNINGS.

I am afraid they will force me into the monthly 1420 45 hours for AUG SEP then withhold benefits which means I wont see a check until the end of FEB, FEB 27, 2019 to be exact ( considering when its 2019 then they only use yearly earnings limit exclusively.) [ I don't like SSA liberal use of words like usually and generally... How can anyone pin them down on anything ! It is really quite insane. I used to be an IT professional many years , and we are exact in specifications. Never use obscuring words like those !!!]

Now, I am very poor. I debt. behind on bills

I supported family of 5 on 15000 so far this year.

I am a 1099 contractor driving for a car service. I have made about 17000 so
far this year and it is now 09/25/18 This is the Gross pay
they use the net income , gross less my expenses . so I am under the 17040
for all of 2018 so far

I get the impression most places that they try to force you into the monthly
earnings test. They never ever mention that you could use yearly if you
earned less. the focus is always on those who earned more than 17040. Bad
policy of SSA, not covering the whole scope.
I think I should use the yearly , since I made less than 17040 even less
minus 1099 contractor expenses
If they use the monthly test then they will say I made too much money in
AUGUST , SEPT 2018 even though it is all still less than the 17040

I got a questionnaire from the SSA that I am not sure how to answer.
I will put down 16000 for the NET earnings.
They ask how many hours I worked in August...September I don't want to answer this.
I think I will respond to 0 hours for OCT NOV DEC and leave other months blank

Here is the number of the SSA form "Earnings Estimate Form SSA-L9781-SM"

I get $xxxx
and I have child(ren) in care $xxx + $xxx
and spouse take care of child in care $xxx
total $xxxx
Today, I just received my first deposit for retirement for month of AUGUST 2018.
I made a lot of money in former years in the IT field and had tons of SS tax withheld.

Help ! thanks William

Hi William,

You shouldn't lie about the number of hours you worked on a form that you sign and submit to Social Security because that's a crime. Nor does it sound like there's any reason to lie in your case, since as long as your NET self- employment earnings for the calendar year of 2018 ends up being below $17,040 you will be due all of your 2018 benefits regardless of the number of hours you worked. Social Security will not use the monthly retirement test unless you earn more than $17,040 for the calendar year 2018, and even then they would only use the monthly test if it was more advantageous to you than the annual earnings test.

Just to be perfectly clear, though, for annual earnings test purposes Social Security will count your net self-employment earnings for the entire calendar year of 2018, not just the amount you earned after July.

Best, Jerry