Do mineral royalties count as income for the social security earnings test?

I am trying to understand the impact of mineral royalties reported on schedule E for a person who has social security income but has not reached the full retirement age. According to the social security handbook, royalties from books, music and art count as earned income but they dont mention mineral royalties. Does anyone know the answer to this question?

Whether this article is correct I can not say:

It counts, on schedule 1040 there is a line for income from rents and royalties. There is a worksheet for calculating the amount of social security income that is taxable.

It only counts against the Annual Earnings Test if you have a participating interest. Then it is considered self employment. Otherwise it does not count against the AET.

Brad, I can only tell you what we have been told. It is something we are also going to have to deal with soon. The information I have been given may not be correct and there are many people on the forum who know much more about this than I do. Also, our accountant does not specialize in oil and gas. If you are only a mineral owner as Mr. Salter said, you will not owe self employment tax on your mineral income for the year. For that reason, the SS department does not weigh this income against the $17,200 income ceiling. However, you will owe Federal Income tax on a portion of your SSI retirement income if your mineral royalties exceed certain income levels along with any other income you might have. Those brackets can be found online. I am not writing this to start an argument with anyone, because what we have been told might be incorrect. Good luck. Kathy

Kristopher, I'm 70 are you saying I don't have to report my royalty payments as income?

Not to Social Security. You are over your full retirement age and no longer restricted to an Annual Earnings Test even if you do have a participating interest. You may still have to report to the IRS.