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Old Aug 02, 2014, 01:27 AM
JoeS21 JoeS21 is offline
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Member Since: Jul 2014
Location: Boston
Posts: 450
Quote:
Originally Posted by Fresia View Post
In my conversation with the rep the other day, they are concerned with reportable taxable income as they check this at the end of every year with the IRS after tax season as to an earnings we have all reported in each tax year. The amounts you describe seem to fall into the category as being UNDER the amount that is needed for even being reported as taxable income, so there would be no record of it with the IRS for social security; the reportable minimum income amount is designated each tax year, and you can find out online at the IRS website or contact a local accountant or tax office, like an H&R Block to ask what amount of earnings are considered the minimum reportable income. It used to be under $400 net profit for the self-employed but it may very well have changed.

If it is not taxable reportable income, it sounds as though it would not be of any consequence to social security, which is what that rep seems to have been telling you when she said you didn't need to report that amount, as you would not have to file taxes for it; but if in turn if you go over the minimum reportable amount or if you go over ESPECIALLY $770, (it is not $700 this year), then it would definitely matter to social security affecting your benefits and count towards your trial work period, as you know.

I was told and read in their brochures to submit ONCE A MONTH, to my local office by mail or in person, COPIES of my paycheck stubs or receipts for services rendered if self-employed for proof of income no matter the amount; however, if concerned about income below $770, this is what I would do for these concerns to make sure all was kosher:

1. Find out what the non-reportable income amount is for the self-employed for this tax year with a tax office or IRS website or accountant;
2. Contact social security and ask whether there is a SPECIFIC minimum amount that needs to reported; and
3. Ask them where it says their answers in writing to confirm it unless you can find it on their website to calm any fears.

It sounds like you don't have anything to worry about but there seems to be a gray area that I understand your concern in wanting to get it clarified and allay any fears.
Yes, I believe that making $50 a WEEK is going to require me to file taxes and report that income to the IRS.