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Social Security Taxes

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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?

    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.


      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.


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