If your Social Security payments are high enough, you might be able to qualify for a mortgage even if this is the only income you get. Home buyers can use any income from the Social Security Administration when applying for a mortgage.

What is Social Security Equivalent Benefit?

Tier 1 benefits include social security equivalent benefits (SSEBs). These are benefits a railroad employee or beneficiary would have received under the Social Security system. The SSEB portion of Tier 1 benefits are treated the same way as social security benefits for tax purposes.

Do you have to pay Social Security on capital gains?

The Social Security tax only applies to your earned income, such as wages, bonuses and self-employment income. All of your unearned income, like capital gains, interest and dividends, are exempt from the Social Security tax, regardless of how much income you have.

Who is a qualified substitute for a seller?

A Seller is wise to sign the Affidavit (required) and the Qualified Substitute form. A Qualified Substitute in general practice is an escrow holder. The escrow holder will, in the course of interviewing a Seller, obtain and retain the appropriate Social Security number.

Where is the statement by a qualified substitute?

The statement by the qualified substitute does NOT provide the personal information directly to the buyer, so this is by far the choice most sellers and agents prefer. Near the bottom of the page, in huge type font, is an admonishment to the buyer, if the affidavit is given to him or her, to not misuse the TIN or SSN.

Why are sellers reluctant to give buyer Social Security number?

Since it contains the seller’s social security number (or employer identification number), sellers are understandably reticent to permit their buyer to have this information, for fear of it getting into the wrong hands and resulting in identity fraud.

Do you have to sign the affidavit and the Qualified Substitute form?

A Seller is wise to sign the Affidavit (required) and the Qualified Substitute form. A Qualified Substitute in general practice is an escrow holder.