The “Consultant” Trap: Self-Employment, Hours Worked, and the Earnings Test
Confused by Social Security?
Retiring to become a consultant? Social Security looks at Hours Worked, not just income.
The “Substantial Services” Rule
If you work more than 45 hours a month (or 15 hours in skilled trades), benefits may be withheld—even if you show no net profit.
Transitioning to consulting?
Let’s check if your filing date puts your benefits at risk.
Best Strategy
Wait until Full Retirement Age to file if you plan to consult.
About Author
Ray R. Harris
Ray R. Harris, RSSA®, partners with tax and legal professionals to provide specialized Social Security claiming analysis for high-net-worth clients aged 58–70. A former executive with an MBA and background in Finance, Ray mitigates liability for his partners by ensuring their clients optimize spousal benefits, tax efficiency, and lifetime income.
Related Articles
Q3 Strategy Review: Preparing for Year-End Distributions
It’s Q4. Time to land the plane for 2026. 1. RMD Check 2. QCD Strategy 3. Capital Gains Harvesting Finish 2026 strong. Let’s review your year-end checklist. Book Your Strategy Session → Conclusion A smooth December starts in September. Prepare for year-end. Schedule your review. Schedule Your Session →
The “Tax Bumps”: Why Your Marginal Rate Might Be 40% (Not 22%)
Because of how Social Security becomes taxable, earning $1 extra might cost you $0.40 or more in tax. This is the Tax Bump. The Multiplier Effect Extra income triggers tax on itself AND makes more Social Security taxable. Don’t pay 40% tax by accident. We map your Tax Bumps to optimize withdrawals. Book Your Session…
The “Survivor’s Checklist”: 5 Steps to Take Immediately After a Spouse Passes
When a spouse passes, take these steps to protect income. 1. Notify Social Security 2. Do NOT Cash the Deceased Check 3. Apply for the $255 Death Benefit 4. File for Survivor Benefits 5. Review Tax Withholding Recently widowed? We can handle the strategy analysis so you can focus on healing. Book a Strategy Session…
