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  • 1.  how much does SS go up for every dollar of self employment

    Posted 06-27-2023 07:24 PM
    Clients ask me by how much their social security  will go up by having a side business earning 5-10,000 in a year
    (we are dealing with people who have the required quarters in for social security but were larning say 30-40,000 a year while they worked)

    The question is if additional social security (S/E) taxes are a good investment 

    Does anyone have a figure or an approximation or is there a calculators  that can be used?
    Are there any good you tubes on this?
    (my next step is to try AI !)


    Thank you

    Marvin Gruza CPA


  • 2.  RE: how much does SS go up for every dollar of self employment

    Bronze Most Valuable Member
    Posted 06-28-2023 07:13 AM
    Marvin

    SS is based on highest 40 Quartets of earnings. Without knowing what the earnings history is, it's hard to answer. Although based on 10K per year it does not seem that it would increase, if they earned 40K a year. Your client can contact SS to get the history or possible open an online account with Medicare to get the info.
    --
    Gerald S. Cohen, CPA
    cell 516 455-0643



    Original Message


  • 3.  RE: how much does SS go up for every dollar of self employment

    Bronze Most Valuable Member
    Posted 06-28-2023 10:03 AM

    I believe they index all of your earnings for inflation and then take the 35 highest years of compensation and use the result in their formula.  

    As Jerry suggests, the best way to see how additional earnings affects SS benefits is by setting up an online account at SSA.GOV.  They have an online tool whereby you could tweak future earnings to see what benefits you could expect.



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    James Kalaitzis
    JAMES KALAITZIS, CPA, PC
    Commack NY
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    Original Message


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