Proving December self-employment income to Social Security after early retirement - urgent help needed

After multiple frustrating experiences with this EXACT situation, I learned that SSA mainly focuses on when you PERFORMED the work, not when you got paid. Keep a detailed log showing exactly which days you worked and for how long. I had THREE different SSA reps tell me different things about how they count self-employment income! The SS system is NOT designed for people with irregular earnings. You can submit evidence now using the Message Center in your MySocialSecurity account - upload your December invoice dates, work logs, and payment receipts. DON'T wait for them to come asking later!! They'll absolutely just divide your Schedule C income by 12 if you don't specify.

My neighbor just went through this! He said they look at when u actually did the work for self employment not when u got paid. Make sure u have good records.

This is a common concern with self-employment income. For Social Security purposes, income counts when it's earned (when the work is performed), not when it's paid. The monthly earnings test applies only during the first calendar year in which you're entitled to benefits. You should maintain detailed records including: - A work log showing dates and hours worked - Contracts showing when work was expected to be performed - Invoices with clear service dates indicated - A separate business bank account to track deposits SSA will ask for monthly breakdowns at your first continuing eligibility review. When they evaluate self-employment, they look at work activity and substantial services performed. If you worked fewer than 45 hours in December, that helps your case significantly. I'd recommend proactively submitting this documentation by uploading it to your MySocialSecurity account or bringing it to a local office. Many representatives don't fully understand the complexities of self-employment income, so having thorough documentation is crucial.

i went thru something similar when i started ss benefits in 2023. honestly the local office was useless, kept giving me different answers!!!! took me FOUR calls and each time they told me something different about how they count income. finally got someone who knew what they were talking about and they said what matters is when you ACTUALLY DO THE WORK not when u get paid. make sure u keep records - dates u worked, how many hours, client names. I got hit with an overpayment notice 9 months later bcuz they said i earned too much but was able to fight it by showing exactly which months i earned what

Have you tried calling SSA directly to ask about this? I was in a similar situation last year.

For self-employed individuals, Social Security looks at two different tests: the income test and the work activity test. The month you perform substantial services in your business is when that income counts, regardless of when you receive payment. Here's what you need to document for December 2024: 1. Hours worked (keep a detailed calendar) 2. Nature of services performed 3. How your responsibilities may have changed from full-time work 4. Any business expenses incurred specifically in December If you worked fewer than 45 hours in your business during December, SSA generally won't consider that substantial work. Between 15-45 hours depends on the skill required and whether you managed the business. Rather than waiting for tax filing, you should proactively contact SSA with this documentation. You can upload it through your MySocialSecurity account or schedule an appointment to review it with a claims specialist. The most important thing is to break down your work activity by month, not just tracking the payments received.

trying to reach SSA about this stuff is IMPOSSIBLE sometimes. i gave up after being on hold for 2 hours last month

If you're still having trouble reaching a real person at SSA, I finally got through using this service called Claimyr. They hold your place in line and call you when an agent is about to answer. Saved me hours of hold time when I had a similar income reporting issue. You can see how it works at https://youtu.be/Z-BRbJw3puU or just go to claimyr.com. After trying for weeks to get through about my self-employment income questions, I got connected in about 35 minutes instead of waiting for hours or getting disconnected.

Social security is so confusing! I thought retirement age was 65 but now its like 67 for most people? the whole system needs to be simplified

One more thing I forgot to mention - if you DO get an overpayment notice (I HOPE YOU DON'T!), immediately file for a waiver! Even if you know you might have gone over slightly. The waiver process buys you time to gather MORE evidence about your work activity. When I dealt with this, I eventually had to PHYSICALLY GO to the local office with printouts of EVERYTHING - invoices, bank statements with deposits highlighted, my work calendar. The system is SO BROKEN for self-employed people!!!