Q: I have a question on paid annual leave upon retirement. I will be 59 years and 8 months old and has 37 years seven months on the target retirement date of Dec. 31. I only earned 33 quarters and to earn more credit on Social Security, can paid annual leave be considered as Social Security income for the year 2012, since the paid annual leave is not included as CSRS income for the year 2011? If so, what is the procedure to report it as Social Security income? And will this only be applied at the end of the year of retirement or it can be considered in any month of the year?
A: No, your paid annual leave cannot be used to get Social Security credits. Only earnings from wages or self employment that are subject to Social Security taxes can secure those credits.