Social Security Earnings Test Can Treat Farmland Income as 'Working' if Owner Actively Manages Crop-Share Leases
For individuals filing for Social Security before full retirement age, income from actively managed crop-share farmland leases can be classified as self-employment earnings, triggering the retirement earnings test. This test withholds $1 in benefits for every $2 earned above $24,480 (in 2026). Conversely, fixed cash rent from farmland or distributions from farmland REITs are generally considered passive investment income and are exempt from this earnings test, allowing retirees to collect full benefits without penalty.
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