Most years the earnings covered expenses but I did not draw a salary and the business was profitable a few times but not by much. (I am a songwriter/producer and any income would/will come from residuals. My wife and I also opened a brick and mortar party supply store with the intent to develop it so the grandchildren have something. We did not take any salary just invested in the business).
What would constitute earnings subject to SS? We lived off SEPP from my IRA, made investments from it, paid taxes on it, etc.
I opted not to go on disability, but rather contribute to the best of my ability.
I would think there has to be something that can be done to rectify, lets say a poor judgement on my part and lack of knowledge on the inner workings of the system.
Only earnings from working would constitute SS earnings. Earnings from working would consist of earnings on a W-2 as an employee, a profit on Schedule C as a sole proprietor, or on a K-1 (Form 1065) as a partner.
IRA withdrawals and investment income are not included as this is unearned income and social security taxes are not paid on this type of income.
Enrolled Agent
EA, QPA, CHFC, CEBS, CLU - 29 years experience providing financial advice