During the 60-month $1 for $2 offset participation period, after you complete your grace period, SSA will determine how much to reduce your benefit payments for each month in the year or in the offset period, based on an estimate of your BOND countable earnings. To get this estimate, we use your estimate of total earnings for the year and subtract your estimate of the amount of allowable deductions for the year. The resulting amount is the estimate of your BOND countable earnings for the year. Some allowable deductions include the following:
Once we establish your estimate of BOND countable earnings, we subtract the BOND yearly amount and divide the remaining amount by two. We then divide that amount by twelve to determine the monthly offset amount. The monthly offset amount is the amount by which your benefits for each month in the year are reduced under the benefit offset.
SSA will perform an end-of-year earnings comparison of your BOND earnings estimate and your actual earnings.