20 C.F.R. § 404.1096

Current through September 30, 2024
Section 404.1096 - Self-employment income
(a)General. Self-employment income is the amount of your net earnings from self-employment that is subject to social security tax and counted for social security benefit purposes. The term self-employment income means the net earnings from self-employment you derive in a taxable year, except as described in paragraphs (b), (c) and (d) of this section.
(b)Maximum self-employment income.
(1) The term self-employment income does not include that part of your net earnings from self-employment that exceeds (or that part of your net earnings from self-employment which, when added to the wages you received in that taxable year, exceeds)-

Taxable year Amount
Ending before 1955$3,600
Ending in 1955 through 19584,200
Ending in 1959 through 19654,800
Ending in 1966 and 19676,600
Ending after 1967 and beginning before 19727,800
Beginning in 19729,000
Beginning in 197310,800
Beginning in 197413,200
Beginning in 197514,100
Beginning in 197615,300
Beginning in 197716,500
Beginning in 197817,700
Beginning in 197922,900
Beginning in 198025,900
Beginning in 198129,700
Beginning in 198232,400
Beginning in 198335,700
Beginning in 198437,800
Beginning in 198539,600
Beginning in 198642,000
Beginning in 198743,800
Beginning in 198845,000
Beginning in 198948,000
Beginning in 199051,300
Beginning in 199153,400
Beginning in 199255,500

(2) For the purpose of this paragraph the term wages includes remuneration paid to an employee for services covered by an agreement entered into under section 218 of the Act, or an agreement entered into under section 3121(l) of the Code, which would be wages under section 209 of Act if the services were considered employment under section 210(a) of the Act.
(c)Minimum net earnings from self employment.
(1) Self-employment income does not include your net earnings from self-employment when the amount of those earnings for the taxable year is less than $400. If you have only $300 of net earnings from self-employment for the taxable year you would not have any self-employment income. (Special rules apply if you are paid $100 or more and work for a church or church-controlled organization that has exempted its employees (see § 404.1068(f) ).)
(2) If you have net earnings from self-employment of $400 or more for the taxable year you may have less than $400 of creditable self-employment income. This occurs where your net earnings from self-employment is $400 or more for a taxable year and the amount of your net earnings from self-employment plus the amount of the wages paid to you during that taxable year exceed the maximum creditable earnings for a year. For example, if you had net earnings from self-employment of $1,000 for 1978, and were also paid wages of $17,500 during 1978, your creditable self-employment income for 1978 would be $200.
(d)Nonresident aliens. A nonresident alien has self-employment income only if coverage is provided under a totalization agreement [see § 404.1913 ] . We do not consider an individual who is a resident of the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa to be a nonresident alien.

20 C.F.R. §404.1096

45 FR 20075, Mar. 27, 1980, as amended at 50 FR 36575, Sept. 9, 1985; 52 FR 8250, Mar. 17, 1987; 57 FR 44098, Sept. 24, 1992; 69 FR 51556, Aug. 20, 2004