Still on my way to get 40 credits for social security requirement. However, for 2024, I only have $5k earned income from work, so I won’t have $6,920 earned income from work for 4 credits.
My question is, how can I keep get the full credits when I don’t have a income from a job? Can I take out money from my IRA to make up the $6,920 requirement and pay taxes on my own to satisfied the requirement?
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No. You cannot "buy" Social Security credits. Those work credits come from actually working. You will get credits for the quarters that you worked---but if you did not work for a full year/earn enough from working, then it will not be the maximum amount of four credits.
https://www.ssa.gov/pubs/EN-05-10072.pdf
Thank you for the information@xmasbaby0 . I live with my son and do cooking, house cleaning, etc as I have prior homemaking experience from a job and He gave me money in return. Would this count as earened income from work that could be eligible for social security work credit? We don’t have an employment agreement or anything like a 1099
@Taxhelpneeded2023 You are asking if you can enter income earned as a household employee of your son? Maybe---but does your son claim you as a dependent? Are you providing childcare for him--or are you just cleaning, cooking, etc.? And were you paid at least $2600? Your son might need to issue a W-2 to you.
Social Security credits are earned by having income from a W-2 job as an employee, or by earning income from working as an independent contractor---in other words---by being "self-employed." If you work as an independent contractor then you pay self-employment tax for Social Security and Medicare. You can enter self-employment income even if you were paid in cash without receiving a 1099NEC.
If you are a household employee, your son needs to provide you with a W-2, per the information below:
But--I asked about whether you provided childcare. If you are claimed as a dependent by your son, he cannot get the childcare credit---that credit is disallowed if the childcare is provided by a dependent.
We may need some thoughts from another "Champ" --- @Hal_Al ?
@Hal_Al
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