For purposes of this paragraph, disability annuity payments include payments to an individual who retired on partial or temporary disability.
For other rules relating to the determination of earned income from self-employment in a trade or business, see section 911(b) and the regulations thereunder.
Maximum retirement income level under section 37(e)(5) | $2,500 | |
Earned income offset under section 37(e)(5)(B)(ii): | ||
Earned income in excess of $1,700 | $950 | |
One-half of earned income in excess of $1,200, but not in excess of $1,700 | 250 | 1,200 |
Amount determined under section 37(e)(5) | 1,300 | |
Retirement income | 2,400 | |
Credit for the elderly (15 pct. of $1,300) | 195 |
Credit base of H: | ||
Amount allocated to H under section 37(e)(6) | $2,150 | |
Reductions required by section 37(e)(5): | ||
Social Security payments | $1,400 | |
One-half of excess of earnings over $1,200 | 50 | 1,450 |
Amount determined under section 37(e)(5) | 700 | |
Retirement income | 6,000 | |
Credit base of H | 700 | |
Credit base of W: | ||
Amount allocated to W under section 37(e)(6) | $1,600 | |
Reduction required by section 37(e)(5)(B): | ||
One-half of excess of earnings over $1,200 | $200 | |
Amount determined under section 37(e)(5) | 1,400 | |
Retirement income | 1,400 | |
Credit base of W | 1,400 | |
Computation of credit: | ||
Credit base of H | 700 | |
Credit base of W | 1,400 | |
Combined credit base | 2,100 | |
Credit for the elderly (15 pct. of $2,100) | 315 |
Maximum retirement income level under section 37(e)(7) | $1,875 | |
Reductions required by section 37(e)(5): | ||
Social security payments | $700 | |
One-half of excess of earnings over $1,200 (taking into account one-half of combined earnings of $2,900) | 125 | 825 |
Amount determined under section 37(e)(5) | 1,050 | |
Retirement income | 3,700 | |
Credit of H (15 pct. of $1,050) | 157.50 |
Maximum retirement income level under section 37(e)(7) | $1,875 | |
Reductions required by section 37(e)(5): | ||
Social security payments | $700 | |
One-half of excess of earnings over $1,200 | 125 | 825 |
Amount determined under section 37(e)(5) | 1,050 | |
Retirement income (limited to W's share of public pension) | 700 | |
Credit of W (15 pct. of $700) | 105 |
26 C.F.R. §1.37-3