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.

I went through something very similar with my disabled daughter a few years ago. The confusion between SS tax exemption and earnings test rules is SO common - even some SSA representatives get it wrong initially! One thing that really helped me was getting everything in writing from SSA. When you do connect with them (definitely try that Claimyr service someone mentioned), ask them to send you a written explanation of how your specific caregiver income will be treated. That way you have documentation if there are any disputes later. Also, since you're caring for your son, make sure you're taking advantage of any tax credits you might qualify for - like the Child and Dependent Care Credit if he qualifies, or potentially claiming him as a dependent for other tax benefits. Every bit helps when you're dealing with reduced SS benefits! The temporary reduction really isn't as scary once you understand you get that money back later through higher monthly payments. Good luck with whatever you decide!

I'm in a similar situation caring for my elderly mother and was completely confused about this same issue until I spoke with SSA last year. What really helped me was creating a spreadsheet to compare the different scenarios - claiming early with reduced benefits vs waiting until FRA. Don't forget to factor in cost of living adjustments (COLA) when you're doing your calculations. The withheld benefits that get added back to your monthly payment after FRA also get adjusted for inflation, so you're not losing purchasing power on that money. Also, if you do decide to claim early, make sure to report your earnings accurately to SSA throughout the year. They can adjust your monthly withholding to spread it out rather than taking a big chunk at the end of the year when they reconcile everything. It makes budgeting much easier! The whole system is needlessly complicated, but at least you're asking the right questions before making the decision. That puts you way ahead of most people who just stumble into these situations.

I want to add something important that hasn't been mentioned yet - make sure you understand how the earnings test works if you turn 67 (reach FRA) partway through 2025. In the year you reach FRA, there's actually a higher earnings limit that only applies to the months BEFORE you reach FRA, and after that month there's no limit at all. Since you mentioned planning to claim at 63 next year, this wouldn't apply to you immediately, but it's worth knowing for your planning. Also, I'd strongly recommend keeping detailed records of all your caregiver payments and any documentation about the FICA exemption. If there are ever any disputes with SSA about how your income should be classified, having thorough documentation will save you a lot of headaches. The caregiving work you're doing for your son is so important, and it's frustrating that the system makes it so complicated to understand how it affects your benefits. Definitely use that Claimyr service or try calling SSA early in the morning (right when they open) for the shortest wait times.

I work as a benefits coordinator and see this exact confusion ALL the time. You've gotten great advice here, but I want to emphasize one more point - when you do speak with SSA, ask specifically about Form SSA-131 (Employer Report of Special Wage Payments). Sometimes there are nuances in how different types of caregiver payments are classified that could affect your situation. Also, since you're an Individual Provider, make sure you understand whether you're classified as an employee or independent contractor for your caregiver work. This can sometimes impact how the earnings are reported and counted for the earnings test. The documentation suggestions from others are spot-on. I've seen cases where people had to fight incorrect earnings calculations because they didn't have proper paperwork showing the nature of their caregiver income. Better to over-document than under-document with SSA! One last thought - have you looked into whether your son might qualify for any additional services that could supplement your caregiver income? Sometimes there are respite care programs or other benefits available that could help bridge the gap if you decide to reduce your caregiving hours to stay under the earnings limit.