Earnings Test

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Earnings Test

In Social Security in the United States, a test to determine whether a person under normal retirement age (between 62 and 67) is eligible for reduced benefits. The test sets two levels of income (which vary year to year); if one's own income is above the lower level but below the upper level, one may receive benefits at a $1 reduction for every $2 in wages. One receives full benefits in later years after one has passed proper retirement age.