1. What Are Social Security Covered Earnings?

Social Security covered earnings are wages from jobs where you paid Social Security taxes. These earnings determine your eligibility for and amount of future Social Security benefits.

2. How Earnings Are Calculated

The calculation is simple summation:

Where:

• Covered Wages — Earnings from jobs where Social Security taxes were withheld
• Sum — The total of all covered wages over your working years

Note: Only earnings up to the annual taxable maximum ($147,000 in 2022) count for each year.

3. Importance of Accurate Earnings Calculation

Details: Your Social Security benefits are based on your highest 35 years of earnings. Accurate records ensure you receive the correct benefit amount.

4. Using This Calculator

Tips: Enter your annual covered wages separated by commas. The calculator will sum them to show your total covered earnings.

5. Frequently Asked Questions (FAQ)

Q1: What counts as covered earnings?
A: Wages from jobs where Social Security taxes were withheld. Some government jobs may not be covered.

Q2: Is there a maximum amount that counts each year?
A: Yes, only earnings up to the annual taxable maximum count (changes yearly).

Q3: How can I verify my earnings record?
A: Create a my Social Security account at ssa.gov to view your official earnings record.

Q4: Do self-employment earnings count?
A: Yes, if you paid Social Security taxes on them through self-employment tax.

Q5: How are benefits calculated from these earnings?
A: Benefits are based on your average indexed monthly earnings (AIME) from your highest 35 years.