If I am self-employed, how do I calculate and report my income for SSI?
- Estimate the first year Net Profits from the business (Schedule C)
- Calculate Net Earnings from Self Employment (NESE)
- Net Profit minus ½ self-employment taxes (7.65%)
- Social Security will divide NESE by the number of months worked and monthly income
- SSI will be adjusted accordingly
- At end of the tax year, report actual Net Profits to Social Security
- If different than the original estimate, SSI will be adjusted accordingly
- Social Security will use actual NESE to project the effect on next year’s SSI
Additional Resources
