TN 23 (04-11)
Base the amount of Social Security benefits paid to an individual during the year
on that individual's estimate of earnings for the year. If the individual underestimates
the amount of expected yearly earnings, he or she will be overpaid.
To avoid overpayments, encourage high estimates unless the beneficiary is reasonably
certain of his or her earnings for the year.
Question earnings estimates and assist beneficiaries, where necessary, to arrive at
a reasonably correct amount. Unless the beneficiary has reason to know the exact amount
of his or her current year earnings (such as complete wage stubs or a W-2), help the
beneficiary arrive at an approximation of the maximum amount which could be anticipated
considering past earnings patterns, present work, and possible future work.
Have you counted gross wages rather than take home pay? (Use 4 and 1/3 weeks to arrive
at a monthly amount.)
How often is the beneficiary paid? (i.e. on a bimonthly or every other week basis)
(Every other week results in 2 extra paychecks per year.)
Will the retiree receive any special payments at or after retirement such as a bonus,
vacation pay, or any type of deferred compensation? (For Special Wage Payment, see
Does the beneficiary plan to do any part-time work after retirement?