Earnings Test When Collecting Social Security Before FRA when Self Employed


Dryer sheet aficionado
Dec 29, 2013
Hi All,

My understanding is a self-employed individual claiming Social Security benefits before FRA provides "Net Income" (not gross earnings) to Social Security Administration which is used as the basis for determining what SS withholds from benefit payout (please correct me if my understanding is wrong).

Now my specific question: For "Net Income" determination does SS use Line 31 (Net Profit or Loss) from IRS Form Schedule C as the basis for determining SS withholding amount? Or some other IRS form line item as the basis?

Is this the same when a self-employed person claims SS benefits before their birthday?

Hope I was clear on my question...if not please let me know. Thanks!
This Pub from the SSA answers all of your questions. Only "earned income" counts toward the SS income limits, essentially your W2 wages plus any profit from your Schedule C's


Thanks. W2 income is N/A in this case. Only self-employed net income, which according to IRS rules is what self-employed would base their income test on to determine withholding on Social Security benefits payout for claims. I'm only trying to confirm, for self-employed net income, that I would use the number on Schedule C Line 31 Net Profit (or loss) for that?
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