How Does Your Brain Score? Take the Staying Sharp Brain Health Assessment

 

Can rental income cause a reduction in a current Social Security benefit?

En español | Social Security only counts income earned from employment towards the Retirement Earnings Test.  Other kinds of income; including income from rental properties, lawsuit payments, inheritances, pensions, investment dividends, IRA distributions and interest; will not cause benefits to be reduced. For every $2 earned above the annual limit, $16,920 for 2017, Social Security withholds $1 in benefits. (A different formula applies for the year that the person reaches full retirement age.) Earnings made as an employee, net earnings from self-employment, bonuses and awards are among the things that count in calculating the person's income. But Social Security will not count other kinds of income, including income from rental properties. Other exempt income includes lawsuit payments, inheritances, pensions, investment dividends, IRA distributions and interest. The limit goes away after full retirement age – the person is free to earn unlimited amounts without any effect on benefits.


Submit a Question to AARP Experts

Didn’t see the answer to your question? Help us improve the tool by submitting your Social Security question. Go


Next Article

Read This