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Retirement tax questions
@TomD8 wrote:
As @xmasbaby0 implies, your situation strongly suggests that you did not report your self-employment income on Schedule C of your tax returns as you should have. If you had done so, TurboTax would have automatically generated Schedule SE, which calculates your Medicare and Social Security tax.
That's an interesting suggestion, I'm not 100% sure it will work.
First, the taxpayer would have to pay about 15% of the work income in back taxes, plus interest and penalties for late payment. The SE tax would go to their credit at the social security administration and result in a recalculation of the benefit, but would the increased benefit pay off in the long run against the taxes, interest and late fees?
Then, I'm not clear that the IRS or social security administration would process an amended return more than 3 years old. The IRS won't pay a refund more than 3 years old, and I assume they would cash a check if you send payment, but I don't know if it would be applied to the social security benefit.
I would suggest a review with a tax pro first.