TN 17 (05-12)

RS 02505.005 How to Count Wages Under the Earnings Test (ET)

A. Wages defined

Income that meets the definition of wages is earnings for ET purposes, unless excluded under sections 209 or 210 of the Social Security Act (Act).

B. Procedure for determining wages for the ET

To determine wages earned in a taxable year (TY), add together the following types of income:

  • All remuneration from employment not specifically excluded from the definition of wages or employment under Sec. 209 or 210 of the Act; plus

  • Those wages excluded for coverage purposes only because of the quarterly or calendar year minimums in such areas as agricultural labor, domestic employment, etc; plus

  • Wages above the yearly maximum limitations for coverage purposes; plus

  • Wages from non-covered employment performed in the United States.

EXCEPTION: For payments that are wages for coverage purposes but not for ET purposes, see RS 02505.045.

C. See also

For information concerning payments that are not wages, see

  • RS 01402.400 Payments That Are Not Wages, through

  • RS 01402.480 Veterans' Training Pay; and

  • RS 01505.030 Definition of Wages for State and Local Government Employees.

For information concerning payments which may or may not be wages, see

  • RS 01402.500 Payments under Federally Sponsored Programs, through

  • RS 01402.510 Tolerance Rule for Developing Questionable Pay.

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RS 02505.005 - How to Count Wages Under the Earnings Test (ET) - 05/29/2012
Batch run: 07/09/2013