smstonypoint
Super Member
- Joined
- Oct 13, 2009
- Messages
- 5,351
- Location
- SC (Upstate) & NC (Piedmont)
- Tractor
- NH TN 55, Kubota B2320 & RTV 900, Bad Boy Outlaw ZTR
I can't imagine a scenario in which paying more income and SE tax to get more SS benefits makes sense unless maybe only a year of credits was needed to qualify.
I can. I have a friend ( a sharp cookie) who draws a Federal pension. He declared his timber sales income as ordinary income although the income qualified as capital gains. By doing so, he paid FICA taxes and earned credits to qualify for SS. He had done the math and concluded that it worked for him.
The situation is further complicated by the fact that farmers can still use income averaging for tax purposes.
IMO, the accountant was either
(a) a genius for taking into account the effects of the farmer's income and FICA taxes on his SS income, or
(b) a complete idiot.
Steve
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