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Unearned income is all income that is not earned such as social security benefits pensions state disability payments unemployment benefits interest income dividends and cash from friends and relatives.
Making income while on social security. In 2020 early filers are allowed to earn up to 18 240. The retirement earnings test allows the social security administration to withhold some or all of your benefits based on much you earn. Earned income is wages net earnings from self employment certain royalties honoraria and sheltered workshop payments. For 2020 the threshold for substantial gainful activity is 1 260 month or 2 110 month for a person who is blind.
During the year you reach fra and up to the month you reach fra social security will deduct 1 for every 3 you earn that is over the annual earnings limit.
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