What is a social security credit? how can a self emplayed person earn it?
2007-08-25 09:19:37 · 6 answers · asked by nmd 1 in Business & Finance ➔ Taxes ➔ United States
A social security credit is one quarter of a year where you had covered income and paid social security taxes. A self-employed person pays self-employment tax when filing an income tax return on the income, and gets social securiy credits then, since self-employment tax is for social security and medicare.
2007-08-25 09:29:42 · answer #1 · answered by Judy 7 · 0⤊ 3⤋
A credit replaces what used to be a calendar quarter of coveragel To get one credit, you have to earn $1,000 in 2007. Four credits constitute a year of coverage even if you earn all the money in one month. You need 40 credits to qualify for retirement benefits.
2007-08-25 09:50:38 · answer #2 · answered by Anonymous · 0⤊ 1⤋
A self employed person files Schedules C and SE. Schedule SE is where you "pay" SS and Medicare tax, and therefore "earn" SS "credit."
2007-08-25 10:53:56 · answer #3 · answered by r_kav 4 · 1⤊ 1⤋
Good question. You pay into the SS system when you have a positive income on your tax returns and pay SS taxes on that income.
2007-08-25 09:24:19 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Go to their website. Its www:socialsecurity.org or .gov. Self Employed people pay almost double since they are the employee and the employer.
2007-08-25 09:27:47 · answer #5 · answered by Irish 7 · 0⤊ 2⤋
complicated stuff. seek in yahoo or google. that will might help!
2014-12-10 15:18:40 · answer #6 · answered by Anonymous · 0⤊ 0⤋