Social Security early retirement with travel nursing stipends - will non-taxable income count toward SS earnings limit?

For Social Security earnings test purposes, only gross wages and net self-employment income count toward the annual limit. Non-taxable stipends and per diems generally do NOT count toward the earnings test. So if your W-2 wages are under $22,320, you should be fine regardless of how much you receive in legitimate stipends. Just be aware that the stipends must be legitimate under IRS rules (temporary assignments, maintaining a tax home, etc.) or they could be reclassified as taxable income during an audit.

While the previous response is generally correct about stipends not counting toward the earnings test, there's one important caveat - if you're an independent contractor rather than a W-2 employee, different rules may apply. How are you classified with your travel nursing agency?

Your situation sounds perfect for early retirement! I took SS at 62 and kept working part time staying under the limit. Best decision ever! More money in my pocket and less stress. Go for it!

This is a TERRIBLE idea!!! The SSA WILL find out eventually and you'll owe THOUSANDS back. They count ALL income and you can't trick them with "stipends" - they're not stupid. My friend's cousin tried something similar and got hit with a $23,000 overpayment notice! Be careful!!!!

Have you tried calling SSA to get a definitive answer? I spent WEEKS trying to get through to my local office about my own retirement questions. Always busy signal or disconnected after waiting forever. Finally used a service called Claimyr (claimyr.com) to get through - they have this system that waits on hold for you then calls when an agent is on the line. Saved me hours of frustration. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU Once I actually spoke with someone, they confirmed exactly what others are saying here - non-taxable stipends don't count toward the earnings test limit.

hi im a travel nurse too and have the same question lol. did you ever get a clear answer? im 61 and thinking about doing the same thing next year.

Another important consideration is what the reduced income will do to your future benefit amount. Social Security uses your highest 35 years of earnings to calculate your benefit. If you reduce your taxable wages significantly while collecting early, you may be lowering your future benefits slightly. However, given that your taxable wages are only about 40% of your total compensation, this may not impact you much if you've already had 35 solid years of earnings on your record.

Does anyone know if there's a minimum number of hours you need to work to keep getting the stipends? My agency requires at least 36 hours per week to qualify for the tax-free stuff.

One last thing to be aware of - if you go over the earnings limit, it's not a cliff where you lose all benefits. For every $2 you earn above the 2025 limit of $22,320, SSA will withhold $1 from your benefits. So even if you accidentally exceed the limit somewhat, you won't lose everything. Also, in the year you reach Full Retirement Age (FRA), the limit is much higher and the penalty is lower (only $1 withheld for every $3 over the limit). And once you hit your FRA, there's no earnings limit at all.

This is such a helpful discussion! I'm not a travel nurse but I'm in a similar situation where I have both taxable wages and some non-taxable reimbursements from my employer. Reading through all these responses, it sounds like the key is making sure your stipends are legitimate under IRS rules and that only your W-2 Box 5 wages count toward the earnings test. @CosmicCrusader - it might be worth getting that confirmation in writing from SSA like you mentioned. That way if there are any questions later, you have documentation of what you were told. Good luck with your decision!