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How much do People Earn on Social Security? - The Motley Fool
This article by Kailey Hagen for the Motley Fool was published on July 6, 2024. She looks at the “average amount” of Social Security earned by a typical couple. Read here…
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FYI people don’t “earn” anything on Social Security. It’s unearned income.
Brian:
Thanks for the observation. You are correct that Social Security income is not earned in a payroll sense. More correctly, though, Social Security benefits reflect a return on the payroll tax (FICA) paid while engaged in the workforce. In that sense, it’s appropriate to refer to Social Security income as an “earned benefit” since there must be an earnings record on which the benefit is calculated. Also, from a federal income tax perspective, IRS law requires that Social Security benefits be included in modified adjusted gross income (subject to income thresholds) for taxation.
Thanks again for your comment. We appreciate hearing from readers and knowing what’s on their minds.
Gerry Hafer
AMAC Foundation Social Security Advisor
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