Yes, but when TurboTax calculates my Schedule C net income, it doesn't tell me which expense deductions can affect the earnings test for recipients of social security benefits.
Let's try this again ... SS goes off the NET Sch C profits ... I have never heard of certain expenses on the Sch C that are not allowed ... maybe you can post a link where you saw this information. If you have a family member on payroll for your SE business then that is a valid business expense on the Sch C.
Seems like there is a way to have TurboTax do this. If a tax filer is reporting SSA benefits and there is net schedule C income that could be affected, a page could pop up explaining that certain allowable expenses in determining taxable income may not be allowable for the SSA earnings text (i.e., retirement contributions, wages paid to a family member, etc.).
The reduction of early SS benefits is not part of the income tax program and never will be ... this information needs to be gotten from the SSA and is provided to early benefit recipients when applying for them.
What Income Reduces Social Security Benefits?
If you plan to work in retirement and also collect Social Security benefits, then some of your benefits may be temporarily withheld based on your income. Until you reach full retirement age, your benefits will be reduced by $1 for every $2 you earn in excess of $18,240 for 2020 and $18,960 for 2021. In the year you reach full retirement age, your benefits will be reduced by $1 for every $3 that you earn above $48,600 for 2020 and $50,520 for 2021.
When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you're self-employed. We include bonuses, commissions, and vacation pay. We don't count pensions, annuities, investment income, interest, veterans, or other government or military retirement benefits.
If you are eligible for retirement benefits this year and are still working, you can use our earnings test calculator to see how your earnings could affect your benefit payments.
