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SSA.Help4u.168
SSA.Help4u.168, Accountant
Category: Social Security
Satisfied Customers: 3475
Experience:  Tax Accountant
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Income was from self-employment. Where on the income tax

Customer Question

Income was from self-employment. Where on the income tax form does SS gets the earnings to base SS benefits on?
Submitted: 1 year ago.
Category: Social Security
Expert:  SSA.Help4u.168 replied 1 year ago.

If you are trying to determine if part of your social security will be taxable, even though the income rec'd was self employment income, that is the income that you add to the social security. Your self employment income is reported on the Schedule C, and you report your social security income on the Form 1040, Line 20a. Using tax software, once you enter the social security benefits and self-employment income, the numbers will be plugged in where they should be.

Let me know if I can be of further assistance to you regarding this matter.

Customer: replied 1 year ago.
Where on the income tax form (sched, line, etc) does SS get the income amt to base the SS benefit? Thank you.
Expert:  SSA.Help4u.168 replied 1 year ago.

Hello again, I understand what you are asking now. Initial Social security benefits are determined based on a person's lifelong earnings, not what is reported on their tax return form. SEE BELOW:

We base Social Security benefits on your lifetime earnings. We adjust or “index” your actual

earnings to account for changes in average wages since the year the earnings were received.

Then Social Security calculates your average indexed monthly earnings during the 35 years

in which you earned the most. We apply a formula to these earnings and arrive at your

basic benefit, or “primary insurance amount.” This is how much you would receive at your

full retirement age — 65 or older, depending on your date of birth.

REFERENCE SOURCE:

https://www.socialsecurity.gov/pubs/EN-05-10070.pdf

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For a clearer understanding, you can refer to the reference source document.