Reporting inconsistent freelance income while receiving SS

[RobertM271307]

I'm 64.5 and a freelance photographer. I just started receiving SS benefits. My income is very inconsistent. I might work four weeks in a row and then go 2-3 months with no work. For the year I might not exceed the $18,960 thresh hold but for 4 months I will probably be way above the monthly $1580. My understanding is that I have to report that income when I get paid not when I do the work. Do I just call SS when I get booked for the work or is there a form online that I can fill out? Thanks

[ReTiReD51]

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After reading   Do I need to notify Social security if I am receiving benefits and earn more than the annual limit?

I think @RobertM271307 idea to notify SSA as soon as possible is the safest thing to do. And then let them tell you the rules.

Sorry I misunderstood your original question.

[GailL1]

Since you are probably classified as a self-employed individual - as opposed to somebody getting a paycheck periodically from an employer - your bottom line isn't gonna be actually known until the end of the year 'cause there are probably expenses connected to any revenues coming in which creates your accurate income.  

[ReTiReD51]

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I might work four weeks…..
I might not exceed ……..
I will probably …….

There are more uncertainties than sure things in your earnings plans. Why gamble.

You can pay your Estimated Taxes weekly, bi-weekly, monthly ect just as long as you’ve paid enough in by the end of the quarter. It’s an easy thing to do using EFTPS.  That way if you do underpay one quarter you can make it up the next week. And if you overpaid you’ve got a refund coming.

Penalty For Underpayment of Estimated Taxes ?

Most taxpayers can avoid penalties if they owe less than $1000 in tax after subtracting their withholdings and credits. And you shouldn’t have a problem doing that considering the modest amount you plan on earning.

Have you thought about the Self-Employment Tax you’ll owe?

How about your state and local taxes?

[RobertM271307]

As a sole proprietor I pay quarterly taxes and plan to pay taxes on my SS income as weel as my photo income.

[GailL1]

That's not what he is talking about -  He is talking about the annual income limit for those on Social Security who are less than FRA.  You know the ole we will takeback $1.00 in benefits for every $2.00 one earns over the annual earnings limit.  In 2022, the limit is $19,560.

The Balance 10/18/2021 - Learn About Social Security Income Limits

[RobertM271307]

Yes Rosanna, I want to know if I need to report the months I make more as a photographer than the monthly limit....or just pay estimated taxes on it all works out at the end. And I know that if I exceed the yearly limited it's $1 for every $2 I own. The bottom line is, do I have to report monthly if I exceed the monthly limit?

[GailL1]

NOLO.com - Reduction in Social Security Early Retirement for the Self-Employed

[GailL1]

@RobertM271307 

Since you are probably classified as a self-employed individual - as opposed to somebody getting a paycheck periodically from an employer - your bottom line isn't gonna be actually known until the end of the year 'cause there are probably expenses connected to any revenues coming in which creates your accurate income.  

Just do it annually - unless you see that you are really gonna go way over the 2022 limit in the earlier part of the year.