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Certain retired selfemployed people—mainly insurance agents and farmers—will benefit from a recent change in the law, according to Bruce Hundley, Social Security Manager in Culpeper.
The change concerns the definition of income which counts for the annual earnings test, the measure used to decide if a person is retired.
Under the old law, all of the income a self-employed person received in a year counted under the annual earnings test, even if part of it was actually earned before that year. Under the new law, income received in a year after the rear a self-employed person becomes entitled to social security retirement benefits if it is not earned after the nonth of entitlement will not
Hundley said that since this provision is effective for taxable years ending December 1977, some self
69.9%