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You do not pay FICA or SE taxes on passive income from rent reported on a Sch E.
thank you! I didn't understand the difference between passive income and other income. when you get paid directly, what is it called?
When you get paid for working, it is called earned income. Only income you earn from working counts toward Social Security and Medicare. Passive income from rental property, investments, etc. is not counted for withholding for Social Security or Medicare, and does not count toward the work credits you will need to receive Social Security and Medicare someday.
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