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Why am I not getting my SSI retirement Credit of Work qualification credits?

I am writing here to ask for help in having someone explain why am I not getting the ?Credit of Work? towards my SSI retirement qualification.

I am married, and we file jointly. My wife has a regular W2 job. I am self-employed (a free-lance musician), and file a Schedule C for myself. Almost all of my income is via the 1099 and I don?t get any W2?s. My only other income (or loss) is via the stock market.

As an example, in 2015 my Form 1040 Line 12 (Business Income/Loss) had a total of +4,069 and my Line 13 (Capital Gains/Loss) had +27,909. My self-Employment Tax (Line 57) is $575. For the 2015 year, SSI Statement shows me achieving $3,757 in both Taxed SSI and Medicare Earnings.

But in 2016, where my Form 1040 Line 12 (Business Income/Loss) had a total of +109 and my Line 13 (Capital Gains/Loss) had +34,712. My self-Employment Tax (Line 57) is 0. For the 2016 year, SSI Statement shows me achieving $0 in both Taxed SSI and Medicare Earnings.

If you put together my capital gains + business income, I made more money in 2016 than in 2015. So why not get any credit at all for SSI/Medicare?

I am 47 and as of right now, I only have only retirement 17 credits. I?ve read all I can find on this, and realize that one can only earn a maximum of 4 credits per calendar year. But I am still puzzled as to why for 2016 I have earning nothing.

All input is much appreciated as I am very puzzled by all this...

Reply to
quilt192
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$109 of Self-Employment income isn't enough income to earn any credits toward your Social Security coverage, and capital gains are not subject to Self-Employment tax in the first place. I'm sure you can find an SSA website online that explains this, and in clear, simple terms.

Reply to
lotax

See Paragraph 1211 at this website:

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Does that answer your question?

Reply to
lotax

"Your Taxed Social Security Earnings" as shown on your SS statement only include income where Social Security or Self Employment tax was paid. The SS/SE tax is paid on W-2 income (up to the maximum income that pays SS tax) and on 92.35% of Self Employment income. You do not pay SS or SE tax on your investment income (Capital Gains, dividends, interest,...) so that income does not count as "Taxed Social Security Earnings" and is not used when calculating Social Security benefits. For years where SE income is less than $400, you don't pay SE Tax and the SE income isn't credited to your "Your Taxed Social Security Earnings".

Based on the information you supplied, the "Taxed Social Security Earnings" for 2015 and 2016 shown on your SS statement appear correct.

Reply to
BignTall

Thanks for that info. So in order to get anything towards my retirement credit, they can only be counted from the Schedule C gain/profit?

Based on this (from the SSA link)

"The amount of earnings it takes to earn a credit has changed since 1978. In the year 2017, you must earn $1,300 in covered earnings to get one Social Security or Medicare work credit and $5,200 to get the maximum four credits for the year."

Meaning: If in 2018 I have a gain of at least $1,300, I will then get at least 1 credit. Correct?

Reply to
quilt192

snipped-for-privacy@gmail.com wrote in news: snipped-for-privacy@googlegroups.com:

This is kind of OT so mod delete if needed, but "SSI" is a welfare program:

Supplemental Security Income (SSI) is a Federal income supplement program funded by general tax revenues (not Social Security taxes):

-- It is designed to help aged, blind, and disabled people, who have little or no income; and

-- It provides cash to meet basic needs for food, clothing, and shelter.

It is administered by the SSA, but is NOT Old Age nor Disability Insurance (OADI).

I post because I see "SSI" referenced often as a synomym for "Social Security".

scott s. ..

Reply to
scott s.

So, I went here:

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but I couldn't find OADI... Live by the acronym, die by the acronym - There's only a few left...

OMGWTFYDGSCFMBOAS

Reply to
lotax

So, I went here:

formatting link
but I couldn't find OADI... Live by the acronym, die by the acronym - There's only a few left...

OMGWTFYDGSCFMBOAS

Reply to
lotax

It's OASDI.

Reply to
Alan

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