The Trump Tax Cut by Eva Rosenberg EA

Author:Eva Rosenberg, EA
Language: eng
Format: epub
Tags: PERSONAL FINANCE/TAXES
Publisher: Humanix Books
Published: 2018-11-11T16:00:00+00:00

Tip #146: Not Enough?

We talked about getting too much Social Security income, but what if you don’t have enough? There are lots of people who worked for themselves, cleverly showing the lowest possible taxable profits to keep their taxes low. Or they came to the United States later in life. Perhaps they worked for employers who did not participate in the Social Security system. Suddenly, they look up and realize they haven’t worked in the Social Security system for the full 40 quarters (10 years). What do they need to do to catch up? It’s time to get a job with an employer who pays into the system, or start a business where you have self-employment profits. For 2017 (2018), the wages or profits must be at least $5,200 ($5,280) per year or $1,300 ($1,320) per quarter. You can look up the annual minimum earnings requirement on the Social Security website (https://www.ssa.gov/oact/cola/QC.html).

Tip #147: Taxable Profits

Suppose you are, and have been, legitimately self-employed, but your taxable profits just don’t reach that level. Is there something you can do? You bet there is. Take a look at Part II of Schedule SE’s Schedule B (https://www.irs.gov/pub/irs-pdf/f1040sse.pdf). It’s on the bottom of the second page of this form. There are two “Optional Methods”—one for farmers and one for other businesses (nonfarm). When your profits are too low, you have the option of paying the higher amount of self-employment taxes to ensure that you meet the Social Security Administration’s 40-quarter earnings requirement. Most people either overlook it or simply don’t understand it and never ask. Take a look and see what I mean: https://www.irs.gov/pub/irs-pdf/f1040sse.pdf.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.