Author Topic: Social Security for Self Employed  (Read 1139 times)

mac91red

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Social Security for Self Employed
« on: June 30, 2016, 08:54:04 AM »
I was hoping someone could point me to some info or help on how social security works for the self-employed.  My wife has been a freelance photographer for a few years now.  She probably has about 8 years of working as a waitress before she transitioned to photography full time.  We have been reporting and paying into SS now that she is self-employed.  When it comes to planning how much she will be eligible for SS I assume it will work the same?  I can just project what we anticipate from her business?  Just want to be sure I am not missing something here.  Thanks

dandarc

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Re: Social Security for Self Employed
« Reply #1 on: June 30, 2016, 09:12:39 AM »
SSA has an earnings record for everyone.  Is she taxed as a proprietor or an S-Corp for freelance work?

If a proprietor, your "earnings" for social security is, I believe, your schedule C net income * 92.35%.

If a corporation, your "earnings" are what you report on your W-2.

dandarc

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Re: Social Security for Self Employed
« Reply #2 on: June 30, 2016, 09:13:38 AM »
https://www.ssa.gov/myaccount/

to see your earnings history, benefits estimate, etc.

mac91red

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Re: Social Security for Self Employed
« Reply #3 on: June 30, 2016, 09:24:34 AM »
SSA has an earnings record for everyone.  Is she taxed as a proprietor or an S-Corp for freelance work?

If a proprietor, your "earnings" for social security is, I believe, your schedule C net income * 92.35%.

If a corporation, your "earnings" are what you report on your W-2.

yup shes a sole proprietor.  So it sounds like we are good then and we can do a basic projection to estimate where she'll land.  Thank you.

dandarc

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Re: Social Security for Self Employed
« Reply #4 on: June 30, 2016, 09:26:33 AM »
Yeah - just be sure your schedule C's and schedule SE clearly identify it as her income, and you should be good.

I'd still log on to SSA just to double-check.  Better / usually easier to find and fix errors earlier than later.