The rule is that if you are self-employed, you can receive full benefits for any month in which you Social Security considers you retired. To be considered retired, you must not have earned over the income limit and you must not have performed what Social Security considers substantial services.

Can I contribute to Social Security on my own?

No. You can’t buy Social Security credits, the income-based building blocks of benefit eligibility. You can’t borrow them or transfer them from someone else’s record.

How are your Social Security benefits based on your earnings?

Your earned benefits are based on your age, your earnings and when you claim your benefits. The Social Security Administration adds your earnings for the 35-highest-earning years of your career, after adjusting for inflation. If you worked less than 35 years, all your working years will be used.

What makes up unearned income on social security?

Unearned Income is all income that is not earned such as Social Security benefits, pensions, State disability payments, unemployment benefits, interest income, dividends and cash from friends and relatives. Generally, the more countable income you have, the less your SSI benefit will be.

How does small business income affect your social security?

Your small business income can affect your benefit if you are not of full retirement age. As of October 2012, if you have not yet reached your full retirement age, the Social Security Administration limits your income to $14,640 gross wages or net self-employment before your benefit gets reduced.

Do you pay taxes on social security if you are a business owner?

For the majority of Americans, you can expect to pay Social Security taxes on all of your income. As a business owner, you may not get a regular paycheck with tax withholdings and deductions. That doesn’t mean you don’t owe the tax.