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I received a Form SSA-L5114 and it says

"Based on information provided to us from Internal Revenue Service, we are reducing the amount of your self-employment income on your Social Security earnings record from $18,0927 to $14,538.0 for tax year 2019.

What does that mean?

My actual self employment income in 2019 was around $46,179. I am not retired and I have never claimed any benefits. Few years ago someone tried to claim unemployment benefits on my behalf and I called and reported it as fraud. Is this in regards to any of that?

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  • Did you have self employment income in 2019? Does either number match the information on your tax forms? May 13 at 23:20
  • Yes, I had self employment income in 2019 but I am sure it was more than $18K. What does it mean they are reducing the amount of self-employment income on my social security?
    – Mary Doe
    May 13 at 23:22
  • My self employment income in 2019 was around $46,179.
    – Mary Doe
    May 13 at 23:24
  • I think it might be related to me filing an am mended tax return to include some amount which I forgot to include. The amount I forgot to include was around 3082.89. I also sent a check with ammended return to pay additional tax etc. Maybe that information just reached the SSN office.
    – Mary Doe
    May 13 at 23:36
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    @jcaron Thanks! I went back to my returns (ammended return 2019) and was able to verify the amount they were talking about. Thank you everyone for your help!
    – Mary Doe
    yesterday

1 Answer 1

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The SSA is tracking your annual reported income (self-employed or employed), so when you retire, they are able to calculate your SS payments.

What this means is that they think your self-employed income for 2019 is the number they wrote, and that will be the calculation basis for your SS pension. If you think this is wrong / too low, you need to follow up with them; otherwise you will get less SS pension when you retire.

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  • I don't understand where they got this number. My self employment income for 2019 was around $46K. This does not make any sense.
    – Mary Doe
    May 13 at 23:44
  • 4
    Well I wouldn’t know where they got it from either - that’s why you need to contact them. There’s nothing to worry, as your tax returns (which you hopefully have) can easily proof your real income, and you have years to handle it. But don’t ignore it.
    – Aganju
    May 13 at 23:48

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