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Will My Accrued Vacation Pay Count Against My Social Security Earnings?

I was paid accrued vacations in 2022 for 2021. Does that count against my social security earnings? I retired from my employer on 12-31-2021. I now work part time.
Thanks Brian

Hi Brian. It sounds like you could request to have your accrued vacation pay excluded from your countable 2022 earnings for purposes of the Social Security earnings test since your retirement date was in 2021. However, it's important for you to understand that Social Security will assume that all earnings reported on your 2022 W-2 form(s) were earned in 2022. So, to get them to exclude the accrued vacation pay from counting, you'll need to get your employer to complete a form SSA-131 (https://www.ssa.gov/forms/ssa-131.pdf). That form will then need to be submitted to Social Security if your accrued vacation pay would put you over the 2022 exempt amount of earnings.

Best, Jerry

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Posted: 
Nov 13 2022 - 11:49am
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