Full question: My boss earned $48,000 on a W2 and had a negative earning of $27,000 on a Schedule C for a new business he started. Does that take him above the maximum earnings? SS is withholding my benefits.

Thank you for contacting us. I understand you’re concerned about how your boss’s earnings impact the withholding of your Social Security benefits.

For Social Security purposes, only the net earnings from self-employment are counted towards the earnings test. Since your boss has a negative net earning of $27,000 on Schedule C, this loss would not be considered as earnings. However, the W-2 income of $48,000 is counted when earned, not when paid. If this W-2 income alone exceeds the earnings limit for beneficiaries who are below their full retirement age (FRA), Social Security may withhold benefits accordingly.

If Social Security is withholding your benefits and you believe this is in error, or if there are additional details that need to be considered, I recommend contacting the Social Security Administration directly for a detailed review of your situation.

For personalized support, you can work with an RSSA here.

Good luck,
Martha

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