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When you receive Social Security benefits the only income that will affect your payment amount is income earned from employment. Any income that is earned through self employment or working for someone must be claimed, and your benefits may be adjusted. Government pensions, dividends, IRA’s, annuities and all other forms of benefits for retirement are not counted as income for Social Security purposes. Since this is a rule that may possibly change in the future, it is always better to verify this information with the SSA when you apply for your retirement benefits.

Will Social Security Benefits Be Affected By A Cash Settlement or Inheritance?

A lawsuit settlement or an inheritance is not considered income in the eyes of the Social Security Administration. If you receive money that is not income based it cannot be used as a determination of income. People that receive Social Security benefits only have to claim money that they earned through employment. People that are receiving Social Security benefits over the age of 70 do not have any restrictions on income. People between the ages of 62 and 69 have the ability to generate a limited income before their benefits are affected. However, this amount may change annually and should be verified at the beginning of each year.

Should I Claim Money Earned Through A Volunteer Program Against My Social Security benefits?

Money that you are given through a volunteer organization does not have to be reported as income for your Social Security benefits. This is applied to any money received in the form of help from a charity or as a gift for volunteering your services. This money is not taxed as income from any other source and will not be considered income from the Social Security Administration.