Will my timeshare sale count as income for Social Security earnings limit?

Good news! The timeshare sale is considered a capital asset sale, not earned income. The Social Security earnings test only counts EARNED income—wages, self-employment, bonuses, commissions, etc. Neither your 401k withdrawals NOR your timeshare sale count toward the $22,320 limit. You're completely fine!

The previous poster is 100% correct - I went through this EXACT situation last year. The SSA only counts WAGES toward that limit, not investment income or asset sales. Your 401k and the timeshare sale are both completely safe! You would only need to worry if you were still working a job and earning over the limit.

Your timeshare money is totaly fine. SSA doesn't care about that stuff at all its just if you WORK and make money. I sold my cabin last year for 35k and it didn't effect my benefits at all!!!!

I HAD THE EXACT SAME WORRY when I sold some property last year!!! Spent DAYS trying to get through to Social Security to ask them about it. Kept getting disconnected or waiting for HOURS. FINALLY got confirmation that property sales do NOT count toward the earnings limit. Total relief but so frustrating to get that simple answer!!!

I went through something similar with a rental property sale. As others have said, capital asset sales don't count toward the earnings test limit. However, I do want to mention that if your timeshare was sold at a profit (meaning you sold it for more than you originally paid), you might have capital gains tax implications. That's separate from Social Security though!

my uncle had this same problem with his cabin but it was like 4x more money and social security never said nothing to him so your fine

I really wish the SSA would make this clearer! I remember spending hours on their website trying to figure this out when I sold some stocks. The earnings limit only applies to wages and self-employment income. Specifically, it's tied to what appears in boxes 1,3,5,7 of your W-2 form or your net profit from self-employment. Asset sales, pensions, annuities, investment income, interest, veterans or other government benefits don't count at all.

Thanks again everyone. I was losing sleep over this! One quick follow-up question - I might pick up some part-time work later this year that would put me slightly over the annual limit when combined with my current part-time job. If I do exceed the $22,320 limit, does Social Security take back ALL of my benefits, or just the portion above the limit?

Just wanted to add my experience to help reassure you! I was in a very similar situation two years ago when I sold some inherited property. I was so worried about exceeding the earnings limit that I actually called my local SSA office multiple times. The agent I finally spoke with explained it perfectly: the earnings test ONLY applies to income from working - wages, salary, tips, commissions, bonuses, and net self-employment earnings. Sales of personal property, real estate, stocks, bonds, mutual funds, etc. are all considered "unearned income" and completely exempt from the earnings limit. Your timeshare sale and 401k withdrawals are both safe! The key thing to remember is that SSA cares about whether you're still actively working and earning money from employment, not about one-time asset sales or retirement account distributions.

I'm so glad you posted this question because I was literally wondering the same thing! I just started receiving Social Security benefits at 62 and have been terrified about accidentally going over the earnings limit. Reading all these responses has been incredibly educational - I had no idea there was such a clear distinction between "earned" and "unearned" income. It makes perfect sense that they only care about whether you're actively working, not about one-time asset sales or retirement withdrawals. This community is amazing for getting real-world experiences from people who've actually dealt with these situations. Thank you to everyone who shared their stories!

I'm glad this question got so many detailed responses! As someone who's been helping people navigate SSA benefits for years, I want to emphasize what others have said - the earnings test is very specific about what counts. Only "earned income" from active work counts toward the $22,320 limit. Your timeshare sale and 401k withdrawals are both considered "unearned income" and are completely exempt. The SSA Publication 05-10069 "How Work Affects Your Benefits" explains this clearly if you want the official source. You can sleep easy knowing you're well within the limits!