A reader arrived at Small Biz Survival with this search query:
“I want to start a home business, but I’m on Social Security. Can I still be self employed?”
This sounds like a good addition to the Small Biz 100 and tax question for Maesz! Here’s the answer:
—–
Yes… but
If she is not “full retirement age,” too much net self-employment income may trigger some recapture of her Social Security benefits.
How much is too much? It is different each calendar year due to indexing. On the Social Security website (and page 2) there is a good discussion of this issue–complete with examples.
If she has reached “full retirement age,” she can earn as much as she wants without any adjustment of her Social Security benefits.
HOWEVER, she is in any instance, responsible for self-employment tax and income tax on her earnings from self-employment.
—–
Thank you, Maesz!
If you have a small business question, leave us a comment.
This article is part of the Small Biz 100, a series of 100 practical hands-on posts for small business people and solo entrepreneurs, whether in a small town, the big city, or in between. If you have questions you’d like us to address in this series, leave a comment or send us an email at becky@smallbizsurvival.com. This is a community project!
Get the whole series by subscribing to Small Biz Survival. New to SmallBizSurvival.com? Take the Guided Tour.
- Zoom Towns: attracting and supporting remote workers in rural small towns - December 10, 2020
- In an economic crisis, spend your brainpower before your dollars - November 25, 2020
- Video: How to fill empty car dealership buildings for the holidays - November 6, 2020
- How has 2020 changed the challenges rural small towns face? Tell us here - October 20, 2020
- The Idea Friendly Method to surviving a business crisis - October 6, 2020
- Join me for the Rural Renewal Symposium online Oct 13 - September 26, 2020
- Cheap placemaking idea: instant murals - September 11, 2020
- Refilling the rural business pipeline - July 7, 2020
- Huge vacant buildings: grants to renovate? - June 9, 2020
- Economic self defense for small towns - June 7, 2020
