Q. I recently received a letter from the Office of Personnel Management that I had gone over the 80 percent limit, and my FERS disability retirement was discontinued. OPM has quoted two different salary figures and different “earned income” in three letters that I received from them. Can you please help clarify as to how to calculate correct 80 percent limitation? Do you report net income under self-employment or gross? Does your earned income includes FERS retirement annuities?
A. The earnings test is based on all income from wages or self-employment actually received during a calendar year, plus deferred income that was earned during that calendar year.
2 Comments
Would this include income from W-2G (Gambling Income) or other prize money? Since most of the time the losses exceed the winnings.
I doubt it. However, to be sure, you’ll have to check with the IRS.