Is it gross self employment income that is considered for social security quarterly credit earning or it is net income?
This year there are some additional deduction like paid sick leave up to 2 weeks during 2020. So, after such deductions and other deductions like vehicle mileage etc - what ever the income is left (net income) - will be considered for social security earning credit?
Or gross self employment income?
Net income (profit). You pay Self-Employment tax (social security and Medicare) on your Schedule C, net income - which is on Line 31.
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Just confirming -
Even during this covid year - if we deduct - paid sick leave up to 2 weeks - it will reduce earning for social security correct?
I thought this is a special provision this year.