Social Security earnings limit for self-employed CIC recipients in 2024 - how much?

For 2024, the earnings limit for CIC benefits (Child-in-Care) is $22,320 per year. This applies whether you're traditionally employed or self-employed. However, there is a difference in how income is counted. For self-employment, SSA looks at your net earnings (after business expenses), not gross income. So you'll need to subtract your legitimate business expenses from your Etsy sales before comparing to the limit. Also remember that only the months you exceed 1/12 of that annual limit (about $1,860 per month) would be affected.

when my husband died i was self employed too and i got confused about all this. they look at NET not GROSS for self employment. so yeah all your supplies and shipping and fees subtract from the total. the limit goes up every year so its different from last year.

I went through the EXACT same thing last year! Self-employed with CIC benefits after my husband died in 2022. Let me tell you, tracking everything is SO IMPORTANT. Social Security will want to see proof of your expenses if they audit you. I keep every single receipt, use accounting software, and maintain separate business accounts. The 2024 limit is higher than 2023, so that's good news at least.

My neighbor collects these benefits and she said something about SSA not counting the first $1 of every $2 you earn or something?? Is that right? I thought there was just a cutoff amount where you lose everything.

I went through HELL trying to get through to someone at Social Security who could actually explain the self-employment rules to me. Spent WEEKS calling that 800 number and either getting disconnected or told different things by different people. Finally used a service called Claimyr (claimyr.com) to get through to an actual person who knew what they were talking about. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. Totally worth it because I was about to lose my mind with the constant busy signals and disconnections. The agent I spoke with went through all the self-employment rules in detail.

Something important that nobody mentioned yet: as a self-employed person, Social Security also looks at your "hours worked" not just your income. If you spend "significant" time on your business (SSA considers 45+ hours/month significant), they might determine you're not entitled to benefits regardless of income level. This is separate from the earnings test. Many Etsy sellers don't realize this and get caught in overpayment situations. You should document your work hours carefully.

This is a common mistake I see people make - they don't realize that with self-employment what counts is what you TAKE HOME after business expenses. My sister-in-law was selling on Amazon and worried about going over the limit but after we sat down and calculated her actual NET income (after all the fees, supplies, shipping, etc) she was way under the limit. Just make sure you can document all your expenses if they ever ask!

Just wanted to add one more important point that might help you - make sure you're reporting your self-employment earnings to SSA promptly when they happen, not just at tax time. They have a form (SSA-1099) you can use to report monthly earnings if needed. I learned this the hard way when I had a really good month on my craft business and didn't report it right away. SSA ended up overpaying me and I had to pay it back later. It's much easier to stay on top of it month by month, especially with something like Etsy where sales can be unpredictable. Also, keep in mind that the $22,320 limit applies to your tax year, so if you started your business partway through 2024, you still get the full annual limit amount.