# SSR 61-57: SSR 61-57. COMPUTATION OF EARNINGS > Federal · Rulings · In force URL: https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_57 ## Section - **Citation:** SSR 61-57 - **Heading:** SSR 61-57. COMPUTATION OF EARNINGS - **Jurisdiction:** Federal - **Kind:** Rulings - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Social Security Rulings / OASI / Reduction of Insurance Benefits / SSR 61-57 ## Text J, a druggist, became entitled to benefits in the amount of $85 per month effective October 1958, when he was 65 years old. For some years J owned and operated a drugstore in Denver, Colorado, to which he devoted full time. He sold the store and business on June 22, 1960, because it was unprofitable. His taxable year 1960 was the calendar year. In this year his net loss from the business was $2,260. (This amount included a loss sustained on sale of his inventory when the business was sold). Early in July 1960, he secured employment and earned wages of $3,120 in the rest of the year. His earnings from employment in each of the months July through December were well over $100. The question to be decided is what deductions, if any, must be imposed against J's benefits for the months of 1960, under section 203 of the Social Security Act. Under the provisions of that section, a person entitled to old-age insurance benefits can earn as much as $1,200 in a taxable year of 12 months and still receive all his benefits for that year. If such a beneficiary has total earnings from employment and self-employment which exceed $1,200 for the year, deductions for one or more months may be required. However, a deduction may not be made for a month in which the beneficiary is age 72 or over; nor may a deduction be made for a month in which the beneficiary neither worked as an employee for wages of more than $100 nor rendered substantial services as a self-employed person. J rendered substantial services in self-employment in each of the 6 months January through June 1960 and rendered services for wages of over $100 for employment in each of the 6 months July through December 1960. Therefore, the decision as to what deductions, if any, must be imposed for months in 1960 depends upon the amount of J's earnings for that year. ices as a self-employed person. J rendered substantial services in self-employment in each of the 6 months January through June 1960 and rendered services for wages of over $100 for employment in each of the 6 months July through December 1960. Therefore, the decision as to what deductions, if any, must be imposed for months in 1960 depends upon the amount of J's earnings for that year. Section 203(e)(4)(A) (redesignated section 203(f)(5)(A) by the Amendments of 1960) provides that a beneficiary's earnings for purposes of imposing deductions will be computed as follows: J's wages for 1960 were $3,120. His self-employment for that year resulted in a net loss of $2,260. Subtracting the net loss from the total wages to compute the earnings in accordance with the provisions cited above, J has earnings of $860 for the calendar year 1960. Since his earnings are less than $1,200 in this 12-month taxable year, it is held that J's benefits are not subject to deductions for any month of 1960 under section 203 of the Act. ## Nearby sections - [SSR 60-26 SSR 60-26. EARNINGS -- CHRISTMAS CASH BONUS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_60_26.md) - [SSR 61-40 SSR 61-40. EFFECT OF SOLDIERS' AND SAILORS' CIVIL RELIEF ACT](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_40.md) - [SSR 61-57 SSR 61-57. COMPUTATION OF EARNINGS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_57.md) - [SSR 61-60 SSR 61-60. COMPUTING TIME PERIOD FOR REOPENING DETERMINATION](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_60.md) - [SSR 62-7 SSR 62-7. REDUCTION OF BENEFITS AND AMOUNT OF DEDUCTION WHERE FAMILY MAXIMUM INVOLVED](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_7.md) - [SSR 62-8 SSR 62-8. WORK DEDUCTIONS -- PARTNERSHIP -- HUSBAND AND WIFE](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_8.md) - [SSR 62-9 SSR 62-9. WORK DEDUCTIONS -- RETIREMENT PAY](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_9.md) - [SSR 62-10 SSR 62-10. WORK DEDUCTIONS -- VACATION PAY](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_10.md) - [SSR 62-60 SSR 62-60: RESCINDED 1989](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_60.md) - [SSR 62-61 SSR 62-61: Rescinded 1984](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_61.md) - [SSR 64-38c SSR 64-38c: SECTIONS 203 and 211. -- WORK DEDUCTIONS -- SUBSTANTIAL SERVICES IN SELF-EMPLOYMENT -- TRANSFER OF BUSINESS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_64_38c.md) - [SSR 64-58 SSR 64-58: SECTIONS 203(b) and (f). -- WORK DEDUCTIONS -- EXCESS EARNINGS IN YEAR ENTITLEMENT TERMINATES](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_64_58.md) - [SSR 65-6 SSR 65-6: SECTION 203. -- NET EARNINGS FROM SELF-EMPLOYMENT -- SUBSTANTIAL SERVICES FOR DEDUCTION PURPOSES](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_65_6.md) - [SSR 65-23c SSR 65-23c: SECTIONS 203(b) and (f) and 211. -- WORK DEDUCTIONS -- TRANSFER OF BUSINESS -- SUBSTANTIAL SERVICES IN SELF-EMPLOYMENT](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_65_23c.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_57. 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