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TaxRobin, Tax Preparer
Category: Social Security
Satisfied Customers: 15054
Experience:  15+ years in tax preparation and instruction
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I retired at age 62, I have not yet collected social

Customer Question

I retired at age 62, I have not yet collected social security benefits. At age 63 I did an
independent consulting job for $50K, must I pay the social security tax plus the matching?
Could I consider not paying the tax and not including it in my calculation for the social
security benefit?
Submitted: 8 months ago.
Category: Social Security
Expert:  TaxRobin replied 8 months ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  TaxRobin replied 8 months ago.

Your work as an independent contractor is self employment. That means that income after expenses over $400 is subject to Self Employment tax.

Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners.

You figure self-employment tax (SE tax) yourself using Schedule SE (Form 1040). Social Security and Medicare taxes of most wage earners are figured by their employers. Also you can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income.

You do not, unfortunately, have the option to not include this income.

Expert:  TaxRobin replied 8 months ago.

Just to clarify, you pay both portions of the tax as a self employed individual.

Please let me know if you need further clarification. If you do not then a positive rating is appreciated so I get credit for the response. (look for the STARS or SMILEY FACES)