Will selling my home affect my Social Security benefits with the earnings limit?

Good news - the sale of your home is NOT considered earnings for the Social Security earnings test! The earnings test only applies to wages from work or net earnings from self-employment. Capital gains from selling a personal residence are not counted as earnings for this purpose. You can sell your home and purchase a new one without worrying about your SS benefits being reduced.

my cousin sold her house last yr when she was 63 and it didnt affect her ss checks at all. your fine

Are you SURE about this??? I sold my rental property last year and my accountant said ANY income can affect your benefits if you're under FRA! I'm so confused because SSA took money from my checks for three months after I reported the sale on my taxes. Now I'm worried about selling my main house too!

Just to clarify what others have said, the earnings test specifically looks at wages and self-employment income. The proceeds from selling your primary residence are considered capital gains, not earnings. Additionally, you may qualify for the capital gains exclusion on your taxes (up to $250,000 for single filers or $500,000 for married filing jointly) if you've lived in the home as your primary residence for at least 2 of the last 5 years. This is separate from the SS earnings test, but good to know. The only way the home sale could affect your benefits is if you invested the proceeds and earned interest/dividend income, but even then, that type of passive income doesn't count toward the earnings test - just your actual wages or self-employment income.

I went through something similar but with stocks not a house. The SSA agent I talked to said only WORK income counts for the earnings test. But it took me FOREVER to get someone on the phone who could answer my question!!

My sister works for SSA and I asked her about this for you. She confirmed what others said - selling your personal residence does NOT count toward the earnings test. Only wages from a job or self-employment income count. You're good to go with selling your house!

when i got my benefits they gave me a pamphlet that explained all this stuff but i lost it lol

One additional thing to be aware of: if you're receiving SSI (Supplemental Security Income) rather than regular Social Security retirement benefits, different rules apply. For SSI, selling your home could potentially affect your benefits because SSI has asset limits. But since you mentioned early retirement benefits at 62, I'm assuming you're on regular Social Security retirement, not SSI, so the earnings test is what applies to you - and home sale proceeds don't count toward that.

Just wanted to add one more reassuring point - I work in real estate and see this question come up a lot with clients who are on Social Security. The distinction everyone's making here is absolutely correct: the SSA earnings test is very specific about what counts as "earnings." It's really just wages from employment and net earnings from self-employment (like if you run a business). Capital gains from selling your primary residence, investment income, pensions, annuities, and other types of income don't count toward the earnings limit. So you can proceed with your home sale and move closer to your daughter without any worries about your Social Security benefits being affected! The fact that you're using the proceeds to buy another home makes it even clearer that this is just a housing transition, not an income-generating activity. Best of luck with your move!

I'm going through a similar situation right now - I'm 64 and planning to sell my house to move into a 55+ community. I was also worried about the earnings test, but after reading through everyone's responses here, I feel much more confident about moving forward. It's really helpful to see so many people confirm that home sale proceeds don't count as earnings for Social Security purposes. One thing I'd add is that when I called SSA to ask about this, they actually have a specific publication (SSA Publication No. 05-10069) that explains what counts as earnings for the annual earnings test. It clearly states that only wages and self-employment income count - not capital gains, investment income, or other types of income. You might want to request a copy for your records so you have the official documentation if any questions come up later. Good luck with your move closer to your daughter - that sounds like a wonderful decision!

I'm also navigating Social Security benefits as a newcomer to this system, and this thread has been incredibly informative! It's reassuring to see so many people confirm that home sale proceeds don't count toward the earnings test. As someone who's still learning all the rules and regulations, I was initially confused about what types of income could affect benefits. The distinction everyone has made between wages/self-employment income versus capital gains is really helpful to understand. Thank you all for sharing your experiences and knowledge - it makes these complex benefit rules much clearer for those of us who are new to this!

As someone who recently started receiving Social Security benefits, I really appreciate how helpful this discussion has been! I had similar concerns about various types of income affecting my benefits, and it's wonderful to see such clear explanations from people with real experience. The distinction between earnings from work versus capital gains from home sales makes so much sense now. It's also great to see the specific SSA publication reference mentioned - having official documentation is always helpful when dealing with government benefits. Thank you all for creating such a supportive and informative community for those of us navigating these systems!

As someone who's also new to Social Security and learning about all these rules, I want to thank everyone for such a thorough and helpful discussion! I had no idea there was such a specific distinction between what counts as "earnings" versus other types of income like capital gains. Reading through all these responses - from people with personal experience, professional expertise, and even someone with a sister who works at SSA - has been incredibly educational. It's particularly helpful to see the mention of the specific SSA publication (No. 05-10069) that officially explains what counts toward the earnings test. This kind of community knowledge-sharing is invaluable for those of us trying to understand how to navigate these benefit systems without making costly mistakes!

As someone who's also new to understanding Social Security benefits, I really appreciate how this discussion has broken down such a complex topic! I was initially worried about how different types of income might affect benefits, but the clear distinction everyone has made between work earnings versus capital gains from home sales is so helpful. It's particularly reassuring to see confirmation from multiple sources - people with personal experience, real estate professionals, and even someone with family working at SSA. The mention of SSA Publication No. 05-10069 is especially valuable for having official documentation. This community has been incredible for helping newcomers like me understand these important financial decisions without fear of unintended consequences. Thank you all for sharing your knowledge and experiences!