social security credits for my wife

[chicago6065612]

We file our tax returns jointly. We both own several rental properties and we show profit on our tax returns. It turns out that my wife does not receive any credits for that income at Social Security. Is there anything I need to change in turbotax so that she received credits as well ? she does not receive any other income, but helps with rentals.  when I set up rental property in turbotax one of the questions is : “this property is owned by”. The options are the following :

“Husband”, “wife”, “both of us”. Shall I put “both of us” so that we both get credits towards our retirement at Social Security? I guess I need to understand what on tax return drives credits allocation at Social Security ?

[xmasbaby0]

Your wife cannot receive Social Security credits for passive income---rental income is passive income.   If she works and has Social Security withheld or if she is self-employed and pays self-employment tax then she will get SS credits toward receiving SS someday.

[californianewllc]

another question.  i am self employed, i filed 2020 taxes today..  i see my self employment tax amount higher than 2019 my a lot of credits for 2020 covid19 i guess, i see a reduce amount SE tax amount, cool! . question is..   how to add more money to my social security funds.. or how many credits i get each year for my retirement?.  I am trying to get as much possible when i retire.. help.. 7 years self employed now. 

[SteamTrain]

@californianewllc 

You get more SS credits by earning more SE money...net amount after expenses are subtracted.

You can only get a max of 4 credits per year....and for 2021  "You must earn $5,880 to get the maximum four credits for the year"  . .... but that is "net" after your self-employment expenses.  (not sure of the exact number for 2020 or prior years)... If you earn a lot more , you don't get any more credits for that year.

You can also get your SS credits by having a W-2 job and earning similar amounts at that job.....so any W-2 job you had before you started working for yourself, that may have earned you some credits already

but read all of:

https://www.ssa.gov/benefits/retirement/planner/credits.html

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You can also get an Earnings History of what the SS admin believes your credited years of earnings are already, by registering and creating a "My Social Security" account online:

https://blog.ssa.gov/your-social-security-statement-is-now-at-your-fingertips/

[californianewllc]

thanks..  yes for 2020,  $5,640 = 4 credits i read it.    so, in my schedule c, line 31 net shows more for sure.. i am okay..  i also have 1040 form.. this one matters too any line or net here?   and yes i alway pay self employment tax..  but in 2020 taxes, i filed today, because of covid19, i see lot of credits, breaks.. cool for us..   

[SteamTrain]

 Your line 31 on the Schedule C eventually feeds into the 1040 (thru the Schedule 1 first).

The only other major thing that could set your eventual SS that you can get after you retire when eligible for SS, is the income from line 1 of the 1040 

(Farm income-profit could also, but I'm nor familiar with how that part works out.)

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