Dear Larry, On the Social security application they ask for total earnings last year. My employer pays every other week, so their amount at the end of the 2017 year won't be an exact Jan. 1 to Dec. 31 figure ($17,153). Likewise, since I am in education paid hourly, I have 2 months of no income, and irregular amounts "paid" monthly the rest of the year, all over the $1410 limit. I planned to start benefits in April at age 62 and continue to work, and am hovering right around the earnings limit. Should I do a manual calculation of my earnings (as they are earned, not paid), or will that just be confusing when Social Security sees my W-2's each year, if that is what they look at to make their determination? I've read a lot about the earnings limit, but not earnings calculation. I'm claiming on my own record now, and waiting till 66 to claim on my deceased spouse's record. Thank you.

Hi,

Social Security will use your W-2 earnings for purposes of the calendar year earnings test (https://www.ssa.gov/planners/retire/whileworking2.html), but you may need to submit proof of your monthly earnings in the first year that you claim benefits if you're being paid based on the monthly earnings test (https://www.ssa.gov/planners/retire/rule.html).

However, based on your earnings pattern it sounds like the calendar year earnings test will be more advantageous for you than the monthly test, so there will likely be no need for you to submit any earnings proof to Social Security other than your W-2 form when the year is over. At worst, you would only have to pay back $1 of your benefits for every $2 that you exceed the earnings test exempt amount.

Before filing, though, you may want to strongly consider using the maximization software available on this website in order to determine if you have better options available.

Best, Jerry