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Level 1
posted Aug 30, 2023 12:11:35 PM

Social Security Qualifications

Hello.  DBH here again, with related question:  

To get (at least) the 4 remaining S.S. points (4), is the qualifying income/ tax contribution based upon NET income, or Gross Income.  Doing Rideshare has many deductions, as does 'handyman' work I occasionally do, ... point being I would rather trim my deductions to claim qualifying income/tax payment, so as to get my final 4 Social Security points.   So, Net or Gross for qualifying income for Social Security (lifetime tally) points.

Thanks.

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1 Best answer
Level 5
Aug 30, 2023 12:16:53 PM

Great question!

The amount of earnings it takes to earn a credit may change each year. In 2023, you earn 1 Social Security and Medicare credit for every $1,640 in covered earnings each year. You must earn $6,560 to get the maximum 4 credits for the year.

I hope this answers your question.  I am going to make an educated guess that this is based on NET INCOME.  So Income - expenses.  

Please remember that it is important to claim all expenses that occured.  Don't leave them out just to get tax benefits or Points.

https://www.ssa.gov/benefits/retirement/planner/credits.html#:~:text=The%20amount%20of%20earnings%20it,4%20credits%20for%20the%20year.

Katie S.

3 Replies
Level 5
Aug 30, 2023 12:16:53 PM

Great question!

The amount of earnings it takes to earn a credit may change each year. In 2023, you earn 1 Social Security and Medicare credit for every $1,640 in covered earnings each year. You must earn $6,560 to get the maximum 4 credits for the year.

I hope this answers your question.  I am going to make an educated guess that this is based on NET INCOME.  So Income - expenses.  

Please remember that it is important to claim all expenses that occured.  Don't leave them out just to get tax benefits or Points.

https://www.ssa.gov/benefits/retirement/planner/credits.html#:~:text=The%20amount%20of%20earnings%20it,4%20credits%20for%20the%20year.

Katie S.

Level 1
Aug 30, 2023 12:23:19 PM

Thank you, Katherine.

DBH

Level 5
Aug 30, 2023 12:25:53 PM

You are very welcome!!!