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Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Social Security
Satisfied Customers: 16576
Experience:  Licensed CPA, CMA, CFE, CGMA M.Accy Also Teach Accounting courses at Master's Level
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I am self-employed. I read that SS deducts from my NET earnings

This answer was rated:

I am self-employed. I read that SS deducts from my NET earnings rather than my GROSS. How do I figure net?
Also, what is the allowed amount I can earn for 2014 before SS starts holding back some of my earnings? For instance, it is $15,120.00 this year?

Customer:

I realize you have a question about social security. My goal is to help you better understand your options.

Customer:

How are you today? I hope you are well!

Customer:

You figure your net earnings by taking your gross earnings and subtracting your expenses.

Customer:

You can earn $15,120 during 2013 and the 2014 numbers have not been published yet

Customer:

After you earn $15,120 your benefit is reduced $1 for every $2 above that amount. However, this is only when you are below full retirement age

Customer:

If you are full retirement age (66) or older, then you can earn an unlimited amount

Customer:

Is there anything else that I can assist you with today? If not, please rate my response as "excellent" so that I may receive credit for assisting you today...

JACUSTOMER-5pl682qb- :

So, I deduct my monthly expenses. Is that like, gas, use of my home as office, and what else can I use??

JACUSTOMER-5pl682qb- :

Do you know when they will post the allowed earnings for 2014?

Customer:

Yes, your expenses are anything that you spend to generate that income. Your home office can be deducted, you can deduct automotive expenses, - anything you spend to generate that income

Customer:

I don't know when they will post the allowed earnings for 2014, but I don't imagine it will be much greater than the current $15,120

JACUSTOMER-5pl682qb- :

OK.....thank you.

Customer:

You're welcome.

JACUSTOMER-5pl682qb- :

I appreciate your help.

Customer:

Is there anything else I can help you with?

Customer:

If not, please rate my response as "excellent" so that I may receive credit for assisting you today

JACUSTOMER-5pl682qb- :

Since I know now that I will be under the $15120.00 this year after redoing with taking out expenses, do you think I am OK not going in to see Soc. Sec. I was going to before because in Oct. I would be over the limit 1/2 way through the month, but, that was w/o taking any expenses out at all for the year.?

Customer:

If you are under that amount after expenses, you are fine. You don't need to go to social security

JACUSTOMER-5pl682qb- :

OK....thanks again and I will give you a rating to be paid.
God bless!

Megan C and other Social Security Specialists are ready to help you
Nancy,

Thanks so much for your positive rating. Please come back and see me any time you have a tax, finance, or social security question. You may get a survey in the next couple of days. Your positive feedback will assist me with my status on the site. Please share your positive feelings with the site. Thanks, XXXXX XXXXX a great day. It was a pleasure working with you today!