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Should I pay Social Security and Medicare taxes from consultancy fees I am receiving while being full-age (69) retired and receiving Social Security benefits?
While using TurboTax, I do not see calculations on whether I should have been paying the Social Security and Medicare taxes while having other income in addition to my full-age retirement Social Security benefits.
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Should I pay Social Security and Medicare taxes from consultancy fees I am receiving while being full-age (69) retired and receiving Social Security benefits?
Yes. The self employed pay Social Security and Medicare taxes as Self employment tax (SET), rather than as "FICA".
SET is calculated on schedule SE and reported on line 57 of form 1040.
If you entered the income as self employment income, with or without a 1099-Misc, TurboTax will automatically handle that.
When you reach full retirement age, there will be no reductions in your benefit if your continue to work. This is frequently misunderstood to mean that your Social Security benefit won't be taxed or other income is not subject to FICA or SET. That's not correct.
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Should I pay Social Security and Medicare taxes from consultancy fees I am receiving while being full-age (69) retired and receiving Social Security benefits?
Yes. The self employed pay Social Security and Medicare taxes as Self employment tax (SET), rather than as "FICA".
SET is calculated on schedule SE and reported on line 57 of form 1040.
If you entered the income as self employment income, with or without a 1099-Misc, TurboTax will automatically handle that.
When you reach full retirement age, there will be no reductions in your benefit if your continue to work. This is frequently misunderstood to mean that your Social Security benefit won't be taxed or other income is not subject to FICA or SET. That's not correct.
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