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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
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Experience:  15years with H & R Block. Divisional leader, Instructor
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If you receive income from a self-employment position 5 years

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If you receive income from a self-employment position 5 years after you have retired and plan to include it on your gross income for this year do you have to pay self-employment taxes on it? If so what IRS Code can that information be found under?

Robin D :

Hello and thank you for using Just Answer,
Unfortunately yes. Self Employment tax is paid on income from self employment that is over $400. You will find under IRC Section 1402 the rules for Self Employment tax.




  • Internal Revenue Code Sections 1402(b) and 1402 (c)(2)(C) and the Regulations thereunder.



  • Internal Revenue Code Section 3121 (b)(11), (b)(12), and (b)(15) and the Regulations thereunder.



Self-employment income is income that arises from the performance of personal services, but which cannot be classified as wages because an employer-employee relationship does not exist between the payer and the payee. The Internal Revenue Code imposes the self-employment tax on the self-employment income of any U.S. citizen or resident alien who has such self-employment income. No where in the code will you find that retirement is an exemption from the tax.

Robin D :

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Customer Last Viewed Today at 10:09

The system advised you viewed but you may not have been able to see the answer in the CHAT mode. Here is a copy of the answer I sent you at 10:02 am:
Robin D :

Hello and thank you for using Just Answer,
Unfortunately yes. Self Employment tax is paid on income from self employment that is over $400. You will find under IRC Section 1402 the rules for Self Employment tax.

 



  • Internal Revenue Code Sections 1402(b) and 1402 (c)(2)(C) and the Regulations thereunder.


  • Internal Revenue Code Section 3121 (b)(11), (b)(12), and (b)(15) and the Regulations thereunder.

 

Self-employment income is income that arises from the performance of personal services, but which cannot be classified as wages because an employer-employee relationship does not exist between the payer and the payee. The Internal Revenue Code imposes the self-employment tax on the self-employment income of any U.S. citizen or resident alien who has such self-employment income. No where in the code will you find that retirement is an exemption from the tax.

Robin D :

Thank you in advance for a positive rating, which lets Just Answer know you were assisted.

 


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