A beneficiary who meets all of the following is required by law to file an annual report of earnings:

1. a. 

   Was entitled to 1 or more months' benefits during the year;

2. b. 

   Was entitled to retirement, or survivors benefits (but not on the basis of their own disability);

3. c. 

   Had earnings of more than the yearly exempt amount;

4. d. 

   Was under FRA (Full Retirement Age) for at least 1 month of the year;

5. e. 

   Received benefits for at least one month of the year before attaining FRA.

As noted above, for reports due on or after 4/15/97 (1996 and later reports) SSA may consider the information on the W-2s and the SE tax returns to be the annual report that is required by law. Beneficiaries still have primary responsibility for providing information to SSA to ensure that the correct earnings and other information is used to adjust benefits under the earnings test. A beneficiary who meets one or more of the following situations should submit a report to SSA, explaining the situation that is involved:

1. a. 

   The beneficiary is eligible to receive benefits under the monthly earnings test and has not previously given us the information, or the information previously provided has changed and benefits are affected.

2. b. 

   Some, or all of the earnings reported on the W-2 was for work done in years prior to the reporting year and are not shown in the "Nonqualified plan" box on the W-2 and were not previously reported to SSA. (See RS 02510.016 - RS 02510.020.)

3. c. 

   The beneficiary earned wages above the applicable exempt amount and also had a net loss in self-employment. (See RS 02510.017B.)

4. d. 

   The beneficiary had wages reported on a W-2 that will also be reported on a self-employment tax return, (e.g. minister or church worker).

5. e. 

   The beneficiary filed a self-employment tax return but did not perform any services in the business (SEI exclusion provision may apply.) (See RS 02505.125),

6. f. 

   The beneficiary is self-employed and files on a fiscal year basis.

7. g. 

   The beneficiary is a farmer, filed a self-employment return reporting earnings of more than the applicable exempt amount and received Federal Agricultural Program Payments or had income from carry-over crops.

8. h. 

   The beneficiary estimated earnings over the exempt amount and had some benefits withheld during the year. However, the beneficiary had no earnings for the year, i.e., no wages and no self-employment income. The might happen if the beneficiary is self-employed and suffers an unexpected loss in self-employment.

9. i. 

   Requests prorated or deferred work suspension. (See RS 02501.120.)

The following information must be reported when filing an annual report of earnings:

1. a. 

   Name, address and claim number of the beneficiary.

2. b. 

   Taxable year being reported.

3. c. 

   Total wages earned in the year (regardless of amount paid).

4. d. 

   Amount of net earnings or net loss from self-employment.

5. e. 

   Nonservice months (if monthly test applies).

6. f. 

   Stop work month and year (if applicable).

7. g. 

   Name and address of person making the report.

An annual report must be filed on or before April 15 of the year following the taxable year, if the taxable year ends on December 31. If the beneficiary files based on a fiscal year, the report is due 3 months and 15 days after the close of the fiscal year.

A report processed no later than 10 calendar days after the deadline is deemed timely filed. If a report cannot be filed timely, an extension may be requested (see RS 02510.022). (See GN 02604.100 for penalty situations.)

Reports are made by the following methods:

1. a. 

   The initial application,

2. b. 

   Office visit or phone call.

3. c. 

   Mail

An initial application is considered to be a closed year report when all of the following conditions apply:

1. a. 

   If the claim is adjudicated in January COM or later;

2. b. 

   Beneficiary is entitled for at least 1 month in the closed year, and earnings information is complete.

Consider earnings information complete if:

• •

  W-2's support allegation;

• •

  SE tax returns that support the allegation are submitted;

• •

  Beneficiary has pay stubs or employer's statement of wages that support the allegation;

• •

  Reliable records of SEI are submitted that support the allegation;

• •

  Beneficiary gives a reasonable basis for believing earnings are complete; or

• •

  No payment is possible due to amount alleged for closed year.

If an initial application adjudicated in or after the January COM does not contain complete earnings information (i.e., not a closed year report):

• •

  Do not make payment for a prior year until an annual report is filed, or the case is processed through enforcement.

• •

  If a final MOET determination depends on an annual report for the year of attainment of FRA, (and the claim is being processed in January Com or later for which year prior payments may be due) no payment is made prior to FRA attainment until the AR for the year of attainment is received, or the case is processed through enforcement. For prior year input purposes, the FO uses "999999" for earnings (MSOM MCS 005.025 and MSOM 36-C ). Any known non-service months should be input and the beneficiary should be told to report any change in non-service months.

• •

  Follow the same procedure for beneficiaries under FRA if the year is closed and an annual report is required.

When a person reports on a fiscal year basis, the earnings are manually prorated to each calendar year and posted to their earnings record.

The PC:

1. a. 

   Prepares a diary to control fiscal year annual reports. The diary due date is the month the fiscal year ends.

2. b. 

   Contacts the beneficiary to get the report when the diary matures. See RS 02501.075 regarding the monthly earnings test for fiscal year cases.

If the beneficiary contacts the FO, PSC or TSC about filing a report, take the report and input using the PEWE screen. Be sure to ask about and input any non-service months and special wage payments if applicable.

1. a. 

   If a beneficiary files a report and requests a recomputation input the annual report and process the recomputation through the Post-Entitlement System (POS).

2. b. 

   If a beneficiary-initiated recomputation or AERO action is pending:

   • •

     Determine if all annual reports have been filed for all year(s) needed.

   • •

     Obtain and process the annual report(s) if the possibility of an overpayment exists.