Work Outside The U.S.

Courtesy Costa Rica Living

If you work or own a business outside the U.S. and are younger than full retirement age, notify the nearest U.S. Embassy or consulate or Social Security office right away. If you do not, it could result in a penalty that could cause the loss of benefits. This loss of benefits is in addition to benefits that may be withheld under one of the work tests explained on the following pages.

For people born in 1937 or earlier, full retirement age is 65. Beginning with people born in 1938, full retirement age increases gradually until it reaches age 67 for those born in 1960 or later.

Report your work even if the job is part-time or you are self-employed. Some examples of the types of work which should be reported are work as an apprentice, farmer, sales representative, tutor, writer, etc. If you own a business, notify us even if you do not work in the business or receive any income from it.

If a child beneficiary (regardless of age) begins an apprenticeship, notify the nearest U.S. Embassy or consulate or the Social Security Administration. An apprenticeship may be considered work under the Social Security program.

The following work tests may affect the amount of your monthly benefit payment. Work after full retirement age does not affect the payment of benefits.

The foreign work test

Benefits are withheld for each month a beneficiary younger than full retirement age works more than 45 hours outside the U.S. in employment or self-employment not subject to U.S. Social Security taxes. It does not matter how much was earned or how many hours were worked each day.

A person is considered to be working on any day he or she:

* Works as an employee or self-employed person;
* Has an agreement to work even if he or she does not actually work because of sickness, vacation, etc.; or
* Is the owner or part owner of a trade or business even if he or she does not actually work in the trade or business or receive any income from it.

Generally, if a retired worker's benefits are withheld because of his or her work, no benefits can be paid to anyone else receiving benefits on his or her record for those months. However, the work of others receiving benefits on the worker's record affects only their own benefits.