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posted Mar 2, 2022 9:12:14 PM

Why pay self-employment tax when I'm already retired and drawing Social Security?

I am 78 years old and have been drawing Social Security income for a number of years. I have a small business selling antiques and TurboTax says I have to pay self-employment  taxes on that income. Do those taxes get added to my Social Security account to increase my benefit? It doesn't make sense to me.

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1 Replies
Level 15
Mar 2, 2022 9:27:40 PM

From social security:

 

As long as you continue to work, even if you are receiving benefits, you will continue to pay Social Security taxes on your earnings. However, we will check your record every year to see whether the additional earnings you had will increase your monthly benefit.