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    Social Security Taxes

    I got paid a day early, so the paycheck I thought I would get on Thursday (1/1) came today (12/31). I made $97,750 at my real job gross this year. Of course, with 401k, medical, etc...I took home significantly less. But $97,750 is the amount that Social Security and Medicare are taken out of.

    This year, 2008, we sold calves in January. These were my calves I had before we were married, and sold them before we were married. I know for income tax purposes, it doesn't matter, because we are MFJ for 2008. But, for social security / medicare reasons, I think this money should "count" as my income. If that is the case, I'll only pay social security taxes on $4250 and the rest I only have to pay medicare on. Is that right?

    I also think, even though DH is a full time farmer and I only farm 3 days a week with him, I should "count" the money we got from swathing, because I swathed on the weekends and he baled. He should "count" the baling money and I should "count" the swathing money. Again, the thinking is, I won't have to pay SS taxes on that money that way.

    First of all, am I thinking correctly? And second of all, what will lowering his SS income do to him later on? I don't know much about how SS works if both work, or if one makes a lot more than the other. Will it hurt us 30 years from now to do it this way?

    #2
    SS wage base for 2008 is 102k not 97,750.

    Year Wage Base Increase
    2009 $106,800 4.7%
    2008 $102,000 4.6%
    2007 $97,500 3.5%

    Social Security Wage Base - Wikipedia, the free encyclopedia
    Last edited by jIM_Ohio; 12-31-2008, 12:01 PM.

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      #3
      I know it is 102k. That is why I am saying I would pay SS on $4250 from the calves and then not pay SS on the rest of it. $97750 was from my "town job". Calf check was about $15,000 this year, so I wouldn't pay SS on $10750.

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        #4
        My bad- I thought you were implying the cap was 97750 and that looked like the 2007 number in the table.

        OOPS.

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