Correcting Earnings Records

A reader from Arizona asks how to correct an earnings record that never credited them for work performed in 2017 (for which they have a W-2), and if they would receive retroactive back pay.

"I retired in December 2016 and began receiving my Social Security benefit in January 2017. In December 2021, the Social Security Administration told me they had overpaid me and that I had to repay about $15,000. After they underpaid me for five years, they reduced the amount to $10,000, and I paid it back. I then realized that my SSA work record shows I earned $0 in 2017, even though I have a W-2 showing otherwise. Can I dispute that figure by submitting a W-2 showing that I earned income in 2017 and request retroactive back pay?"

First of all, the essence of this question is “How do I correct my earnings record?” There is a formal way to request a correction to your earnings record: the Social Security form SSA-7008, titled “Request for Correction of Earnings Record.”

In short, you fill out some information and provide your proof, and they will correct your earnings record. Just know that you have the best proof: a W-2.

Whether that will change your benefit depends on many factors. Your 2017 earnings would need to be higher than those in one of the 35 other years used to calculate your benefit. Even if it replaces a lower-earning year, it’s still just one of 35 years, so the impact could be minimal. And since you retired, you might be working part-time and not earning much, so it might not budge the needle at all.

There could also be earnings-test issues if you’re under your Full Retirement Age (FRA) and continue working after filing for Social Security. If your earnings are high enough, your benefit could be reduced under the Social Security formula.

I’m not sure there’ll be a big impact here, but it’s worth getting the record corrected so everything is accurate. If you or someone else who understands the calculation method looks at it and says, “Well, this isn’t going to make any difference,” you may decide it’s not worth filling out and submitting the form. On the other hand, if you think it’s worth doing, fill it out.

There is one technicality when correcting your earnings record: a three-year, three-month, and 15-day time limit – like a statute of limitations. However, there are many exceptions in which Social Security will correct it, no matter how much time has passed. One case is when the person has rock-solid proof, like a W-2. And you say you do. So, even though you’re past the time limit to correct a 2017 earnings record, the W-2 is your “get out of jail free” card. (There are other reasons as well.)

In short, it’s important to check your earnings record periodically so you don’t fall outside the prescribed time limit, because it would be a shame to miss out on money due to a missed deadline. I always recommend that people check their earnings records every couple of years and make sure everything looks correct. That allows them to start the corrections process if they need to.

If you decide to proceed, once you’ve filled out that form, you can mail it or take it to your Social Security office. I’ve had some bad luck with the U.S. Postal Service recently, so for really important documents, I’m always looking for an alternative way to deliver them. With Social Security, I wouldn’t go so far as to make an appointment, because that would be a time investment for you and the Social Security staff.

But there’s another option: most Social Security offices have a drop-off slot in their lobbies. Fill out the paperwork as if you’re going to mail it, then put it in an envelope addressed to that Social Security office. Instead of going to the post office, go to the Social Security office in person and drop it in the slot. It’s a safer option.

You should hear back relatively soon, usually within weeks. They almost never call unless you have met with a representative who collected your phone number and said they would call. Otherwise, expect a letter from them with a correction. If it affects your benefit, they’ll increase it and generally do so retroactively when correcting an error.

Hopefully, that helps you in your quest to correct that oversight.