Small Biz Survival

The small town and rural business resource

A row of small town shops

Can you be self employed AND on Social Security?

By

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.

About Becky McCray

Becky started Small Biz Survival in 2006 to share rural business and community building stories and ideas with other small town business people. She and her husband own a retail liquor store in Alva, Oklahoma, and a small cattle ranch nearby. Becky is an international speaker on small business.

Wondering what is and is not allowed in the comments?
Or how to get a nifty photo beside your name?
Check our commenting policy.
Use your real name, not a business name.


Don't see the comment form?
Comments are automatically closed on older posts, but you can send me your comment via this contact form and I'll add it manually for you. Thanks!

Howdy!

Glad you dropped in to the rural and small town business blog, established in 2006.

We want you to feel at home, so please take our guided tour.

Meet our authors on the About page.

Have something to say? You can give us a holler on the contact form.

If you would like permission to re-use an article you've read here, please make a Reprint Request.

Want to search our past articles? Catch up with the latest stories? Browse through the categories? All the good stuff is on the Front Page.

Shop Local

Buy local buttonReady to set up a shop local campaign in your small town? You'll need a guide who understands how we're different and what really works: Shop Local Campaigns for Small Towns.

Best of Small Biz Survival

More of the best of Small Biz Survival