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

Global Genes Badge

FD/MAS Alliance is a recipient of the Financial Advocacy in RARE Impact Grant sponsored by Global Genes.  Thanks to this award, FD/MAS Financial Literacy 101 is made possible.  We thank Michael Beloff, CFP®, ChSNC® Belvedere Wealth Partners, for donating his time and financial expertise and Caroline Fuchs, CAE, for contributing her time, communications, and digital strategy expertise to the FD/MAS community for this resource.