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Show New Social Security Laws Protect Farmers, Ranchers A recent change in the social soc-ial security law makes it possible pos-sible for farmers and ranchers to get social security credit for up to $1600.00 even though they may have had a loss. This new law affects tax years beginning after 1965. Farmers and ranchers may report on their actual net earnings or use the optional method. Farmers having net earnings of $400 or more are required to report regardless of which method they choose. Farmers having $2400 or less gross earnings may report on either method. For example, a farmer having $2400 gross earnings and $800 net. earnings earn-ings may choose to report $800 or $1600 (23 of $2400). If his gross earnings were $2600 and his net earnings were over $1600 he would be required to report the actual net. Farmers with gross earnings of $600 or more may use the option even if . they have a loss. For . example, ex-ample, a farmer having a gross earnings of $1500 and a loss of $600 could choose the option and get credit for $1,000. He would have to pay the self-employment tax on the $1,000 but wouldn't have to pay income tax on the $1,000 claimed on the optional method. As social security benefits are based on average earnings, earn-ings, the optional method will help to increase some farmer's social security payments. If farmers or other persons have questions regarding social soc-ial security or Medicare a representative rep-resentative of the Provo Social Security District Office will be in the Resident Station at Cedar Ce-dar City every Monday and Thursday from 9:00 a. m. to 3:00 p. m. to assist them. |