Does tax-exempt income under IRS Notice 2014-7 count toward Social Security earnings limit?

my sister works as a caregiver too and gets that same tax exempt money. she started SS at 62 last year and they only count her regular taxable wages for the limit. the IRS notice 2014-7 money doesnt count according to what her SS person told her. good luck!!

The earnings test for Social Security specifically looks at "earned income" - which is defined as wages, net earnings from self-employment, commissions, etc. The key factor here isn't whether the income is taxable, but whether it's considered earnings. For income under IRS Notice 2014-7 (which covers certain Medicaid waiver payments for care providers), it's excluded from gross income for tax purposes. However, Social Security generally counts money you receive for providing services as earnings - even if it's tax-exempt. I would recommend: 1. Get documentation from your employer separating out exactly which portion falls under the 2014-7 exemption 2. Ask for a formal written decision from SSA (not just a phone call) 3. Consider using Form SSA-795 to document your understanding based on what you're told This is definitely a specialized situation where getting the right answer in writing is important.

I thought ALL money u make counts toward the SS limit?? My brother in law got in BIG trouble cause he didn't report some side work and had to pay back a bunch of SS $$. Be careful!

I went through EXACTLY this situation last year! The key is getting everything documented clearly. For my situation (I care for my adult son through a Medicaid waiver program), SSA determined that my exempt income under Notice 2014-7 DID still count toward the earnings test. I had to reduce my hours to stay under the limit. The problem is that different SSA offices seem to interpret this differently. What worked for me was going in person to my local office and speaking with a Technical Expert, not just a regular claims rep. They have more specialized knowledge on unusual situations like this. This is definitely one of those frustrating gray areas in SSA policy where even their own employees give different answers.

Trying to get through to SSA is THE WORST!!! I spent 3 hours on hold last month just trying to ask a simple question about my benefits. Never even got through to anyone before the office closed. Their phone system is absolutely useless.

The whole system is set up to PUNISH people who try to work while collecting SS!!! Why should we be penalized for trying to stay active and contribute? I had to pay back $4200 last year because I went over the limit by just $1,800. The way they reduce benefits by $1 for every $2 over is robbery. And don't get me started on how they calculate it...total mess.

Just to clarify something important: There's a difference between how the IRS treats income and how SSA treats income for the earnings test. They're two separate government agencies with different rules. The earnings test looks at what SSA considers "earnings from work" - regardless of tax status. From what I've researched specifically on IRS Notice 2014-7 income: 1. This income is excluded from gross income for tax purposes 2. BUT it may still count as earnings for the Social Security earnings test 3. The determining factor is whether SSA considers it payment for current work performed There's a POMS section (SSA's internal rules) that addresses this, but it's complex. This is why getting a definitive ruling from a Technical Expert at SSA for your specific case is critical.

wait i just texted my sister to double check what i said earlier! she said it's more complicated than she first told me. the medicaid waiver payments DO count for the earnings test but DON'T count for calculating your benefit amount. sorry for the confusion! this stuff is so confusing even when you think you understand it :/

Thank you all for your responses! Based on everything shared here, it sounds like I should: 1. Assume my IRS Notice 2014-7 exempt income WILL likely count toward the earnings limit 2. Get documentation from my employer clearly showing which portions of my income fall under this exemption 3. Try to speak with a Technical Expert at SSA (not just a regular rep) 4. Get any determination in writing 5. Consider using Form SSA-795 to document my understanding I'm seriously reconsidering whether to claim now or just wait until my Full Retirement Age (66+8mo) when the earnings test no longer applies. Working and providing care for my family member is important to me, and I don't want to have to reduce those hours. Thank you all again for sharing your experiences and knowledge!

Your summary is excellent and shows you've really absorbed all the key points from this discussion. Just wanted to add one more consideration - if you do decide to claim early and work with the earnings limit, remember that any benefits withheld due to exceeding the limit aren't "lost forever." SSA will recalculate your benefit at FRA to give you credit for those withheld months, which can increase your monthly payment going forward. That said, given the complexity and uncertainty around how your specific income will be treated, waiting until FRA might indeed be the simpler path. The peace of mind of not having to navigate these complicated rules could be worth more than the early benefits, especially since you're already close to your FRA at 66+8 months. Whatever you decide, make sure to keep detailed records of everything - all communications with SSA, your income documentation, and any decisions they make. This will protect you if questions arise later.

I'm in a similar situation as a newcomer to Social Security planning! Reading through all these responses has been really eye-opening about how complex the interaction between different government programs can be. What strikes me most is how even SSA representatives seem to give conflicting information on these specialized situations. The distinction between what's taxable for IRS purposes versus what counts as "earnings" for the Social Security earnings test is something I never would have understood without this discussion. For anyone else in similar situations, it seems like the key takeaway is that you really need to speak with a Technical Expert at SSA rather than relying on general phone representatives. The fact that different offices interpret these rules differently is concerning but good to know upfront. Thank you to everyone who shared their real experiences - especially those who went through this exact situation with Medicaid waiver payments. It's so much more valuable to hear from people who actually navigated this rather than just reading general guidelines online.

As someone new to navigating Social Security benefits, this entire discussion has been incredibly educational! The complexity around IRS Notice 2014-7 exempt income and how it interacts with SSA earnings limits really highlights how challenging it can be to get clear, consistent information. What really stands out to me is how multiple people received different answers from SSA representatives on the same question. It makes me wonder if there should be better training or clearer internal guidance for these specialized situations where tax law and Social Security rules intersect. The advice about requesting a Technical Expert rather than speaking with general representatives seems crucial. I'm also impressed by how thorough everyone has been in recommending documentation and getting decisions in writing - that seems like essential protection given the potential for conflicting interpretations. For anyone else reading this thread, the real-world experiences shared here (especially from Dylan and others who actually went through this process) are invaluable. It's one thing to read policy documents, but hearing how these rules actually play out in practice gives a much clearer picture of what to expect. Thank you to everyone who took the time to share their knowledge and experiences!

As someone new to this community and just beginning to understand Social Security benefits, this discussion has been incredibly enlightening! The complexity surrounding IRS Notice 2014-7 income and its treatment under SSA earnings limits really shows how intricate these government program intersections can be. What concerns me most is the inconsistency in information from different SSA representatives - it seems like such specialized situations really require speaking with Technical Experts rather than general staff. The distinction between what's taxable vs. what counts as "earnings" for the limit is something I never would have understood without reading everyone's experiences here. I'm particularly grateful to those who shared their real-world experiences (especially Dylan's detailed account). It's invaluable to learn from people who actually navigated this process rather than just reading policy documents. The emphasis on documentation, getting decisions in writing, and using Form SSA-795 are all practical tips I'll remember for my own future planning. For anyone else in similar caregiving situations, it seems like the safest approach is to assume the exempt income will count toward the earnings test until you get official clarification in writing from an SSA Technical Expert. Thank you all for such a thorough and helpful discussion!

As a newcomer to this community, I'm amazed by the depth of knowledge and real-world experience shared in this thread! The situation with IRS Notice 2014-7 exempt income and Social Security earnings limits really illustrates how complex these government program interactions can be. What strikes me most is the inconsistent information from different SSA representatives - it's concerning but good to know upfront that you really need to push for a Technical Expert rather than accepting answers from general phone staff. The distinction between tax-exempt status and what counts as "earnings" for the SSA limit is something I never would have understood without reading everyone's experiences. I'm particularly appreciative of those who shared their actual experiences navigating this process (Dylan's detailed account was especially helpful). Learning from people who've been through the real bureaucratic maze is so much more valuable than just reading policy documents online. For anyone else in similar caregiving situations, the consensus seems to be: assume your exempt income will count toward the earnings test until you get definitive written clarification from an SSA Technical Expert. The emphasis on documentation, Form SSA-795, and getting everything in writing seems crucial for protecting yourself. Thank you all for such a thorough and educational discussion - this has been an invaluable introduction to understanding these complex benefit interactions!

As a newcomer to this community, I'm really grateful for this incredibly detailed discussion! Reading through everyone's experiences with IRS Notice 2014-7 exempt income and Social Security earnings limits has been both educational and eye-opening about how complex these benefit interactions can be. What really stands out to me is how even SSA's own representatives give conflicting information on these specialized situations. The fact that multiple people received different answers about the same question is concerning but valuable to know upfront. It definitely reinforces the importance of pushing to speak with a Technical Expert rather than accepting general phone support answers for complex cases like this. The distinction between what's tax-exempt for IRS purposes versus what counts as "earnings" for the Social Security earnings test is something I never would have understood without this discussion. It's a perfect example of how different government agencies can have completely different rules even when dealing with the same income. I'm particularly appreciative of those who shared their real-world experiences - especially Dylan's detailed account of actually going through this process. Learning from people who've navigated the actual bureaucracy is so much more valuable than just reading policy documents online. For anyone else in similar situations, the consensus advice seems solid: assume your exempt income will count toward the earnings test until you get definitive written clarification from an SSA Technical Expert, and document everything along the way. Thank you all for such a thorough and helpful discussion!

As a newcomer to this community, I'm incredibly impressed by the depth of knowledge and real-world experience shared in this thread! The complexity surrounding IRS Notice 2014-7 exempt income and its interaction with Social Security earnings limits really highlights how challenging it can be to navigate these government program intersections. What concerns me most is the clear pattern of inconsistent information from different SSA representatives. It's both frustrating and enlightening to see that multiple people received completely different answers to the same question. This really drives home the importance of specifically requesting a Technical Expert rather than accepting guidance from general phone support staff for specialized situations like this. The distinction between tax-exempt status and what counts as "earnings" for the SSA limit is something I never would have grasped without reading everyone's detailed experiences here. It's a perfect example of how different government agencies can have entirely different interpretations of the same income source. I'm particularly grateful to those who shared their actual experiences navigating this process - Dylan's detailed account of working with a Technical Expert was especially valuable. Learning from people who've been through the real bureaucratic maze provides insights you simply can't get from reading policy documents alone. For anyone else facing similar situations with Medicaid waiver payments, the consensus advice seems very sound: assume your exempt income will likely count toward the earnings test until you receive definitive written clarification from an SSA Technical Expert. The emphasis on thorough documentation, using Form SSA-795, and getting all decisions in writing appears crucial for protecting yourself given the potential for varying interpretations. Thank you all for such an educational and thorough discussion - this has been an invaluable introduction to understanding these complex benefit interactions!