Show SOCIAL afo SECURITY rw liest instills leis ill Ais aimas wilis question I 1 live on a small farm arm and have net earni earnings nag of about a year fro from 7 working it I 1 also work part of the your year ut at a local sugar factory and earn wages of about 3 would it be to my advantage to report my farm earnings for social see sec brity purposes 7 answer you should report your earnings from farm self employment if you net or more in a taxable year your net earnings from your farm operations when reported will be added to the wages you earned during the year and you receive social security credit for your co corn bained wages and net earnings from self employment up to a total of in a year the amount of benefits payable to you and your dependents dependent ii when you retire or to your family in case of your death will be based upon your rec ord of earnings in employment and self employment covered by social security the higher your average mon athly earnings are the higher Y your OU r benefits will be Q question ebion I 1 have farmed for several years and bebau because se I 1 have seven dependent child ren I 1 have never had to pay any income tax do I 1 hive to report my earnings for social answer it Is true that your deductions for depend ants may exempt you from the payment of income taxis tams Ilo however wever if your net profit from self employment is or more you should alport your earnings for social cecur ity purposes by reporting your earni rigs from self em cm you are building a valuable insurance benefit for or your old age or in case you should become disabled and for your survivors in the event of your death question ilow how does filing a tax return on my farm profits give me social security credit answer on the schedule jr schedule of farm income and expenses you file with your income tax return Is a bertlon entitled US report of self employment income alter the internal revenue service has haa received and aud cited your tax return they tear off this and forward it to the accounting department of the social security adain admin here the amount of self employment income re ported is credited to your particular earnings record you cin can see sec that it is very im to complete nil all items on oil the forms and to make sure you include your correct social security number |