Outside Earnings

AAA

DEFINITION of 'Outside Earnings'

Income that temporarily reduces a retired individual's Social Security benefits. Outside earnings from continued work only reduce Social Security benefits for individuals who retire before the age the Social Security Administration defines as full retirement age (currently 65 to 67, depending on year of birth). Retirees who see their benefits reduced because of outside earnings may see these lost benefits restored if they live long enough.

INVESTOPEDIA EXPLAINS 'Outside Earnings'

Social Security benefits are not reduced by outside earnings until income exceeds an annual threshold. They also don't lower Social Security benefits for individuals who are full retirement age or older. Rules about outside earnings mean that individuals must carefully consider decisions about employment and retirement age if they want to maximize their Social Security benefits.



RELATED TERMS
  1. Income Tax

    A tax that governments impose on financial income generated by ...
  2. Ability To Pay

    An economic principle stating that the amount of tax an individual ...
  3. Taxes

    An involuntary fee levied on corporations or individuals that ...
  4. Audit

    1. An unbiased examination and evaluation of the financial statements ...
  5. Gross Income

    1. An individual's total personal income before taking taxes ...
  6. Medicare Wages

    An employee's earnings that are subject to a U.S. payroll tax ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Retirement

    How Much Social Security Will You Get?

    You've been paying in for years - now it's time to find out what the system owes you.
  2. Retirement

    Tips On How To Use IRAs To Boost Retirement Savings

    According to the Trustees of the Social Security Fund, the fund will be depleted by 2037. Are you ready?
  3. Retirement

    5 Tax(ing) Retirement Mistakes

    Don't let these simple errors take the luster off your golden years.
  4. Taxes

    Avoid The Social Security Tax Trap

    Government benefits can cost you big money! Know the income thresholds before you file.
  5. Retirement

    10 Common Questions About Social Security

    Find out everything you need to know about this program.
  6. Retirement

    Introduction To Social Security

    You've probably contributed to this fund, but will you reap the benefits? Find out here.
  7. Investing

    Are You An Investor Seeking For More Income?

    For income-seeking investors, it's hard to turn down a double-digit dividend yield like that of Prospect Capital Corporation .
  8. Investing

    What's MAGI?

    Modified adjusted gross income, or MAGI, is one aspect of a person’s income that is calculated while preparing a tax return.
  9. Retirement

    Will My Pension Impact My Social Security Benefits?

    So you're eligible for a pension, and you're eligible for social security. And the question is, will that pension impact your social security benefit?
  10. Fundamental Analysis

    Paid-Up Capital

    Paid-Up Capital is listed in the equity section of the balance sheet. It represents the amount of money shareholders have paid into the company by purchasing shares. It’s essentially two accounts, ...

You May Also Like

Hot Definitions
  1. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  2. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  3. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  4. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  5. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  6. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
Trading Center