Can I just file a 1099 if I start working part-time as an independent contractor while on SSDI disability? I do not currently pay taxes.

[gmdftl]

If I do start working, I'm sure I would not be earning more than $1000 per month in addition to my benefits. Although I'm not required to file a return, I file anyway.

[VolvoGirl]

Yes.  In fact you HAVE to file if you are an independent contractor and have self employment income even if don’t get the 1099NEC.  You will have to report all your income including the SSDI.  You will get a SSA-1099 for Social Security disability.   

[dmertz]

If during the year you earn more than $433 in income from self-employment, you must file a tax return because you will be subject to self-employment tax.  You must then report all of your self-employment income on Schedule C whether or not your receive a Form 1099-NEC reporting non-employee compensation.

[xmasbaby0]

You are required to file a tax return if you had self-employment income, and you will be paying self-employment tax for Social Security and Medicare.

TAX ON SOCIAL SECURITY

Up to 85% of your Social Security benefits can be taxable on your federal tax return.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable. 

 What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2019 it was $17,640— for 2020 it was $18,240; for 2021 it was  $18,960.  For 2022 it was  $19,560  —  for 2023 $21,240)  For 2024, $22,320.

After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.  If you work as an independent contractor then you will pay self-employment tax for Social Security and Medicare.

To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2023 Form 1040

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

Some additional information:  There are 11 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont  These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.

The tax laws for 2024 will change——for  tax year 2024 Missouri and Nebraska will no longer tax SS

[xmasbaby0]

@gmdftl Do want to make sure you understand clearly that when you prepare your tax return ALL of your income including the Social Security disability and your self-employment income must be entered.  You seem to have the notion that SS will not be taxed and may not be aware that you have to enter it.   ALL income goes on your return----whether your SS is taxable will depend on how much other income you have.  You will enter your SSA1099 and any self-employment income.

[gmdftl]

Hello. Thanks for your reply!

I hope that others will read my response.

My question was apparently not clear enough.

*I do know I would have to report All income.

*At this time I don't work, and I receive SSDI. Although there is no requirement for me to file, I do so anyway.

*Upon calling SS, I sw a dept where they discussed the "Trial Work Program" and the need to advise and report my income monthly,betc. I'm not interested in anything of the sort.

>The Updated Questions are:

* Can I just file future employer 1099 at year end along with SS Disability 1099 without so much monthly reporting, etc?

* If I do get this job, I would not receive income over the threshold. I assume I wb considered an Independent Contractor. * Does this mean I wb Self-Employed and need to file additional forms & pay taxes on this small income?

Thanks for your assistance!

[xmasbaby0]

@gmdftl 

If you are an independent contractor, the IRS considers you to be self-employed.   If you earn even $433 in the year that is self-employment income, you are required to file a tax return and pay SE tax for SS and Medicare.    You might not make enough to affect the taxability of your SS, especially in the first year.   As for making quarterly payments----again---that will depend on how much you are earning from the self-employment.

If you have self-employment income for which you will pay self-employment tax for Social Security and Medicare,  you will need to use online Premium software or any version of the CD/download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_U...

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

calculator-2021-2022-50907/

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

If you live in a state with a state income tax, you might need to make estimated payments to your state.

https://turbotax.intuit.com/tax-tools/calculators/self-employed/