# Christmas Trees and Social Security Rules

> A 63-year-old tree grower’s extra season can shift Social Security earnings counts.
- Title: Christmas Trees and Social Security Rules · 24/7 Wall St.
- Summary: A 63-year-old tree grower’s extra season can shift Social Security earnings counts. A 63-year-old Christmas tree grower’s seventh growing season may exclude…
- Keywords: christmas tree, social security, federal tax, section 631, earnings test, timber gain, self-employment, farm income, tax basis, medicare premiums, Christmas, Trees
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/social-security/2026/09/21/america-has-lost-35-of-its-christmas-tree-acreage-at-63-a-trees-7th-year-can-change-what-social-security-counts
- Author: Gerelyn Terzo
- Published: 2026-09-21T18:05:54+00:00
- Read time: 1 min
- Topics: christmas tree, social security, federal tax, section 631, earnings test, timber gain, self-employment, farm income, tax basis, medicare premiums
## Christmas Tree Acreage Decline
U.S. Christmas tree acreage fell 35% from 2002 to 2022, dropping from 450,000 to 293,000 acres.
## Social Security Earnings Test
Social Security withholds $1 in benefits for every $2 above $24,480 earned before retirement age.
## Tree Age and Tax Rules
Trees cut after six years qualify as timber under federal tax rules, changing Social Security earnings counts.
## Section 631(a) Election
Growers can elect Section 631(a) treatment to separate timber gain from ordinary farm income.
## Tax Basis Matters
The gain on cutting is based on the difference between timber's adjusted basis and fair market value.
## Medicare Premiums
Medicare may look back two tax years when determining income-related premiums for older growers.
## Critical Timing
The election must be made before harvest and cannot be reversed after trees are cut.
## What Changes Next
A 63-year-old grower’s seventh growing season may exclude timber gains from Social Security’s earnings test.
## Key takeaway

A 63-year-old Christmas tree grower’s seventh growing season may exclude timber gains from Social Security’s earnings test.