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TaxRobin
TaxRobin, Tax Preparer
Category: Social Security
Satisfied Customers: 13328
Experience:  15+ years in tax preparation and instruction
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I AM 72 YEARS OLD AND I DO FREE WORK FOR A COMPANY AND I

Customer Question

I AM 72 YEARS OLD AND I DO FREE LANCE WORK FOR A COMPANY AND I RECEIVE A 1099 AT THE END OF THE YEAR. AND WHEN MY TAXES ARE DONE I FIND I MUST PAY INTO SS. WHY I DO NOT RECEIVE ANY OF THAT MONEY BACK THE AVERAGE AMOUNT THAT I GET PAID FOR MY WORK IS ABOUT 5K
JA: The retirement accountant will know how to help. Is there anything else the retirement accountant should be aware of?
Customer: NO
Submitted: 16 days ago.
Category: Social Security
Expert:  TaxRobin replied 16 days 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 16 days ago.

Each year SSA reviews the records for all working Social Security recipients. If your earnings for the prior year are higher than one of the years they used to compute your retirement benefit, they will recalculate your benefit amount. SSA pays the increase retroactive to January the year after you earned the money.

Unfortunately if your work does not increase your benefits that does not release you from the law requiring payments to SS and Medicare based on the self employment.

Because the law requires that covered earnings are subject to SS and Medicare tax, even if you do not have an increase you must continue to contribute.