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  1. #1
    Join Date
    Sep 2011
    Posts
    2

    Question Social Security Quarters for Contract Work

    Hi,

    I am a school teacher getting ready to retire. Because of the state I am in, I do not pay into the social security system. As a second job, I am an aerobics instructor. This work is considered contract labor....no money is taken out for social security purposes....but I do report it at the end of the year when filing my tax return. I have been doing this now for many years and the income ranges anywhere from $2000 - $4000 per year.

    My question is: Can I get soc. sec. quarters/credit for the aerobics job? And if so, how would I go about it?

    Any info will truly be appreciated, especially since I currently have only 26 quarters/credits and I would like to have 40.

    Again, thanks in advance for your help!

  2. #2
    Join Date
    Jan 2009
    Location
    California
    Posts
    1,040

    Default Re: Social Security Quarters for Contract Work

    If you are reporting it as self-employment income and you have a Schedule C and a Schedule SE, you will see that you are paying Social Security taxes and earning quarters like all other self-employed people. $2000 in 2011 is enough for one credit.

    When it comes time for retirement, if you do have 40 quarters, you can qualify for a Social Security benefit, but the computation of your retirement check will be computed under WEP because you have a non-covered pension, the Windfall Elimination Provision, and your monthly benefit will be less than another person with an identical earnings record who does not have a non-covered pension.

  3. #3
    Join Date
    Sep 2011
    Posts
    2

    Post Re: Social Security Quarters for Contract Work

    Thanks for your help. Yes, I do file a schedule C, but not sure on the SE form. Anyway, just trying to cover all my bases with social security.

  4. #4
    Join Date
    Sep 2011
    Posts
    14

    Default Re: Social Security Quarters for Contract Work

    Quote Quoting Janke
    View Post
    If you are reporting it as self-employment income and you have a Schedule C and a Schedule SE, you will see that you are paying Social Security taxes and earning quarters like all other self-employed people. $2000 in 2011 is enough for one credit.
    So it's not the $1,120 like working for someone else and IS higher?
    http://www.ssa.gov/retire2/credits1.htm

  5. #5
    Join Date
    Jan 2009
    Location
    California
    Posts
    1,040

    Default Re: Social Security Quarters for Contract Work

    I didn't look up the 2011 amount. Thanks for doing so.

    $2000 in earnings in 2011 would be enough for one credit since you need to earn at least $1120. A person would have to earn $2240 for 2 credits and $4480 for the maximum number of four.

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