Social Security and Rental Income

photo credit: reutC

Dear CPA,

I will retire at the end of 2009 and will begin to receive social security payments.  Will my rental income in any way reduce what I am scheduled to receive in Social Security benefits?

Thank you, John V.

Dear John,

No.  Investment income will not affect your Social Security payments.  Only wages you earn from a job, or net profit from a self-employed business count against you for Social Security purposes.  Interest, dividends, capital gains and annuities do not reduce your Social Security payments.  As your adjusted gross income rises, you will be taxed more on the benefits, but they will not be reduced.

Sincerely

Joe Rapacki

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