Tweet
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?
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?
Comment