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

Thank you! That's what I was hoping. I definitely maintain a tax home and all my assignments are temporary (13 weeks max). I've been careful about documenting everything for tax purposes. So basically I could earn up to $22,320 in regular wages and still collect full SS benefits, even if my stipends add up to much more than that?

I'm a W-2 employee with my travel nursing agency. They split my compensation between taxable hourly wage and non-taxable stipends (which is standard in the industry). I'm not an independent contractor.

But if they start early aren't they permanently reducing their benefits? Wouldn't it be better to wait until full retirement age? That's what my sister did.

That's the tradeoff I'm trying to figure out. Yes, taking early benefits at 62 reduces my monthly amount by about 30% compared to waiting until my full retirement age of 67. But if I can collect for 5 extra years while still earning good money from nursing (because of the stipend situation), it might work out better financially.

This is incorrect information. The Social Security earnings test specifically looks at earnings as defined by the Social Security Act - which means wages reported on your W-2 (Box 5) or net earnings from self-employment. Legitimate non-taxable reimbursements like properly documented travel nursing stipends are not counted toward the earnings test. Your friend's cousin likely had an issue because either their "stipends" didn't meet IRS requirements for being non-taxable, or there was some other reporting issue.

I tried calling twice and got different answers each time. First person said stipends count, second said they don't. That's why I'm confused. I'll check out that service - I've been trying to get a definitive answer from someone who actually knows the rules.

Based on the responses here, it sounds like the stipends don't count toward the earnings limit, which is great news for us travel nurses! I'm going to make an appointment at my local SSA office to get confirmation in writing though.

That's a good point I hadn't considered. I've been working full-time since I was 23, so I have almost 40 years of earnings already. The last 10 years have been my highest earning years in travel nursing, though only about 40% of that shows up as taxable income. I'll have to request my earnings record to see exactly how reducing my taxable wages would affect the calculation.

My agency requires at least 30 hours per week to qualify for full stipends. I was planning to drop to exactly that - 30 hours/week - which would put my taxable wages right around $21,000 (under the limit) while still getting about $28,000 in stipends. Seems like the perfect sweet spot.

Thanks for explaining that! That makes me feel better about trying this approach. I'm going to apply for my retirement benefits next month and aim to keep my taxable wages under the limit. With the nursing shortage, I should have plenty of flexibility to pick assignments that will work with my new arrangement.

@Esteban Tate That s'exactly what I m'planning to do! I m'scheduling an in-person appointment at my local SSA office next week to get everything documented properly. After reading all the responses here, I feel much more confident about my decision. The travel nursing industry structure with legitimate stipends seems to create a unique opportunity for early retirement that most people don t'have. I ll'definitely update this thread once I get the official confirmation from SSA in case it helps other travel nurses in similar situations.

@Zoe Papadopoulos That s'a great point about the nursing license requirements! I hadn t'thought about that aspect. In my state, I need 24 continuing education hours every 2 years and there s'no minimum practice hour requirement, but I should definitely double-check that before making any major changes to my work schedule. Getting a written determination is definitely the way to go - I ve'learned from this thread that phone representatives can give conflicting information. Thanks for the HR perspective! It s'reassuring to hear that this is a common question in your system. The travel nursing structure really does seem to offer unique retirement planning opportunities that most people don t'have access to.

@Luca Russo This is incredibly helpful - thank you for sharing your real-world experience! The spreadsheet idea is brilliant, I m'definitely going to set that up. It s'reassuring to hear from someone who has actually done this successfully. When you bring paystubs to SSA, do you recommend bringing them from different agencies or assignments to show the consistency of the stipend structure across the industry? I ve'worked with three different agencies over the past year and they all handle the taxable/non-taxable split similarly, but I want to make sure I present the clearest picture possible. Also, how has it worked out financially for you so far? Are you happy with the decision to start collecting at 62 while continuing part-time nursing? I m'still weighing whether the reduced monthly benefit is worth it for the extra years of payments plus continued income.

@Luca Russo That s'exactly the kind of real-world confirmation I was looking for! A spreadsheet tracking system is a great idea - I can see how easy it would be to accidentally exceed the limit without careful monitoring. For the SSA visit, would you recommend bringing paystubs from multiple agencies to show the industry-standard nature of this compensation structure? I ve'worked with different agencies but they all handle the taxable/non-taxable split similarly. Want to make sure I present the clearest case possible. How has it worked out for you so far? Any regrets about starting at 62, or do you feel like the combination of early SS plus continued nursing income is worth the reduced monthly benefit?

@Luca Russo This is so valuable to hear from someone who s'actually navigated this situation! I m'definitely implementing the spreadsheet tracking system - that s'such a practical solution I hadn t'thought of. Quick question about the SSA office visit: did you find it helpful to bring documentation from multiple agencies to show this is standard industry practice? I ve'worked with different travel companies but they all structure compensation similarly. Overall, how do you feel about the decision to start collecting at 62? Are you satisfied with the trade-off of reduced monthly benefits for the extra years of payments plus ability to keep earning through nursing? I m'still on the fence about whether it s'worth it long-term, but your experience gives me a lot more confidence this could work.