Can I calculate SS benefit increase from adding 2 years of unreported self-employment income before FRA?

Yes, there is a way to estimate the potential increase without redoing the entire calculation from scratch. The quick way is using the SSA's replacement factor method. For someone turning 70 in 2025, each additional $1,000 of average indexed monthly earnings (AIME) generally adds about $150 to the monthly benefit (this varies a bit based on his specific AIME range). So I'd do this: 1. Total up the missing income: $174,000 2. Divide by 35 (years in the calculation): $4,971/year 3. Divide by 12 to get monthly: $414/month additional AIME 4. Multiply by approx 15%: ~$62/month increase in PIA 5. Apply delayed retirement credits (2.67% x 12 months=32%): ~$82/month more at age 70 So he might get around $82/month more. That's $984/year or about $19,680 over 20 years. Is that worth paying $26,400 in back taxes? Probably not, unless you expect him to live well into his 90s.

I went thru something similar last year with my wife's benefits. The SSA has a toll-free number 1-800-772-1213 but good luck getting thru!! I spent DAYS trying to reach someone for a question like yours and kept getting disconnected or stuck on hold for hours. Finally found a service called Claimyr that got me connected to an actual SSA agent in about 20 minutes (https://claimyr.com). There's a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent I spoke with ran some calculations for me about adding missed income years. They have tools to estimate exactly what you're asking about without redoing the whole calculation. Turns out in our case it would've added about $50/month which wasn't worth the back taxes.

just want to say it's INSANE how complicated SS calculations r. why cant they just make it simpler?? every time i try to understand my benefits my head explodes lol

LISTEN CAREFULLY. The government WANTS you to think their calculations are accurate but they OFTEN make mistakes. I filed for my benefits 2 years ago and they missed THREE YEARS of my income. When I called them out on it, suddenly my benefit went up by $175/month!!! They don't volunteer this information. You should ABSOLUTELY get those years counted if they were high-earning years. It compounds over the rest of your life AND affects survivor benefits later. The system is designed to confuse people so they don't get what they deserve. The calculation tool on their website is deliberately misleading!!!!

I think first commenter's math is a bit off. The $174k over 35 years only adds about $414/month to AIME, but the replacement rate at the higher AIME levels is only 15%, not 90% like at lower levels. So PIA increase might only be around $62/month, then with delayed credits maybe $82/month at age 70. Still, you have to consider survivor benefits too. If your husband passes before you and you claim survivor benefits, that extra amount helps you for your lifetime too.

Thanks everyone for the helpful feedback. Based on the calculations shared, we've decided it's not worth amending the returns since the break-even point would be around 25+ years. I appreciate all the insights!

One important thing to consider: there's a 3-year, 3-month, and 15-day time limit for correcting Social Security earnings records. For earnings from 2015-2016, you're already beyond this window. However, SSA can make exceptions for "good cause" which includes situations where income was properly reported to IRS but not to SSA. You'd need to file Form SSA-7008 (Request for Correction of Earnings Record) along with proof of income and an explanation. Also, to be very technical, the benefit formula takes your highest 35 years of indexed earnings. The indexing factor adjusts earlier years' earnings upward significantly. So two recent years at $87k each might not actually replace years that, although lower in nominal terms, might be higher after indexing. If you want an exact calculation, you can request a detailed earnings analysis through an in-person appointment at your local SSA office.