Social Security Benefits And Your Earnings
Your Social Security benefits are calculated based on things like how long you worked and how much you earned each year. It is vitally important then to be sure that the Social Security Administration (SSA) has knowledge of all of your earnings over your lifetime.
How Your Social Security Earnings Get Reported To The SSA
Your wages are reported to the SSA by your employer using your W-2 form. The wages that are reported are in box 3 of Form W-2 and the Social Security tax you paid is in box 4. Your employer should be sending copies of your W-2’s to the SSA each year.
If you are self employed, your earnings are reported when you file your Federal Taxes on form Schedule C. The bottom line net earnings listed on the Schedule C is what count towards your Social Security benefit calculation.
How To Ensure Your Earnings Have Been Reported To The Social Security Administration
The Social Security Administration used to mail out an annual statement showing your earnings history. Now however, this is all done online. If you want to review your earnings report, you must register on the SSA website. You should check the SSA website each year to ensure that all of your earnings have been received and properly recorded. If something is missing or your earnings reported are not correct, you will want to contact the Social Security Administration immediately because there is a three-year time limit for earnings to be reported!
You can find a link to the SSA website on our Resources Page.
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