Social Security earnings test exemption for parent caregiver of disabled adult - income confusion before FRA

Unfortunately, no - the income being exempt from Social Security taxes is different from the earnings test for early retirement. If you're collecting SS retirement benefits before your FRA, ALL earned income counts toward the earnings limit regardless of whether it's subject to SS taxes. The exemption you have is just from the FICA taxes, not from the earnings test. Your $31,500 caregiver income will definitely count against the 2025 limit and you'll likely see a reduction in benefits.

r u sure? my brothers wife does caregiver stuff for their kid and her social worker told her something different i think. not all income counts the same way

As someone who had to navigate this exact situation last year, I can confirm that caregiver income for family members DOES count toward the earnings test even though it's exempt from SS taxes. It's confusing because you'd think they would be treated the same way! I learned this the hard way and had my benefits reduced significantly. One option you might consider: Have you looked into spousal benefits instead of your own if you're married? Sometimes that's a better strategy until FRA depending on your situation.

Just to be 100% clear because there's a lot of confusion on this topic: The Social Security earnings test applies to ALL earned income before your Full Retirement Age, regardless of whether that income is subject to Social Security taxes. The only exceptions are unearned income (investments, etc.) For 2025, the limit is approximately $22,320 if you're under FRA for the full year. For every $2 you earn above that, SSA will withhold $1 in benefits. With earnings of $31,500, you'd be $9,180 over the limit, which would result in approximately $4,590 in withheld benefits for the year, or about $382.50 per month. You may want to call SSA directly to confirm this for your specific situation, but be prepared for a very long wait time.

I just wanted to throw in here that SO MANY PEOPLE get confused about this exact issue. The Social Security Administration does a terrible job explaining the difference between income being exempt from SS taxes vs the earnings test. It's like they intentionally make it complicated!!! I've seen people get hit with unexpected benefit reductions and then they're scrambling to pay bills. The system is broken!!

have u considered just waiting til your full retirement age? then u dont have to worry about the earnings test at all... thats what i did

One more thing to consider - if your adult child receives SSI or SSDI benefits, your decision to claim early could potentially impact household income calculations depending on your living arrangement and how his benefits are structured. Make sure to factor that into your planning.

You're correct - if he's on SSDI based on his own record, your income won't affect his benefits. That only matters for SSI, which is needs-based. Also, one clarification about the earnings test: any benefits withheld before FRA aren't permanently lost. Once you reach Full Retirement Age, your monthly benefit will be recalculated to credit you for the months when benefits were withheld. So you do eventually get that money back in the form of a higher monthly payment after FRA.

my mom had something like this happen... she got a letter afterwards saying they took too much from her checks and she got back pay but it took like 2 years i think

Based on everything in this discussion, here are your main options: 1. Claim at 63 as planned, accept the reduction while working, and know your benefit will be adjusted upward at FRA 2. Reduce your caregiving hours to keep income under the threshold (though this may not be practical for your son's needs) 3. Wait until FRA to claim, avoiding the earnings test entirely 4. Look into whether your state's Medicaid waiver program might allow another family member to be the paid caregiver temporarily until you reach FRA Option 4 might be worth exploring if you have another relative who could step in temporarily.