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For those paying SE tax on 1099 Misc/NEC income while also collecting SS Retirement payments...

Will they ever collect on this self-employment income tax they are paying into since they are already retired? Does their compensation for SS get adjusted?  I have one who has next to no expenses to write-off - a few thousand dollars for software, but no home-office designated space, no mileage expense, really to offset the income. I am thinking she should ask those she has contracted with to see if they could employ her with no benefits. She is only working to support a family member with health issues. 

 

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2 Replies
DianeW777
Expert Alumni

For those paying SE tax on 1099 Misc/NEC income while also collecting SS Retirement payments...

This is actually a question for the Social Security Administration (SSA).  They can be contacted at the following number:

As far as the tax law goes, regardless of age or status, you will continue to pay personal income tax and, if self employed or an employee, social security and medicare taxes. It never stops.

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For those paying SE tax on 1099 Misc/NEC income while also collecting SS Retirement payments...

I found this SS blog.

Working after getting SS benefits. Your SS can increase. See 4th paragraph,
We check additional earnings each year you work while receiving Social Security. If an increase is due, we send a notice and pay a one-time check for the increase and your continuing payment will be higher.
https://blog.ssa.gov/three-common-ways-your-social-security-payment-can-grow-after-retirement

 

What do you mean employ her with no benefits?  She is not getting any employer benefits now as a 1099 independent contractor.  

 

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