1201.Self-Employment Income
1201.1What is self-employment income?
Self-employment income means your net earnings from self-employment for a taxable year. The following qualifications must be met:
Your net earnings for the taxable year must be at least $400;
Your trade or business must be covered by Social Security; and
If you are a nonresident alien, your earnings are not considered self-employment income except as provided by an international agreement (see§ 107).
1201.2What are the limits on self-employed income?
Self-employment income cannot exceed the amounts listed in the table below. Any wages covered by Social Security that you earned during the taxable year must be subtracted from the limits shown below.
If the taxable year is... | Then your self-employment income limit is... |
---|---|
1951-1954 | $3,600 |
1955-1958 | $4,200 |
1959-1965 | $4,800 |
1966-1967 | $6,600 |
1968-1971 | $7,800 |
1972 | $9,000 |
1973 | $10,00 |
1974 | $13,200 |
1975 | $14,100 |
1976 | $15,300 |
1977 | $16,500 |
1978 | $17,700 |
1979 | $22,900 |
1980 | $25,900 |
1981 | $29,700 |
1982 | $32,400 |
1983 | $35,700 |
1984 | $37,800 |
1985 | $39,600 |
1986 | $42,000 |
1987 | $43,800 |
1988 | $45,000 |
1989 | $48,000 |
1990 | $51,300 |
1991 | $53,400 |
1992 | $55,500 |
1993 | $57,600 |
1994 | $60,600 |
1995 | $61,200 |
1996 | $62,700 |
1997 | $65,400 |
1998 | $68,400 |
1999 | $72,600 |
2000 | $76,200 |
2001 | $80,400 |
2002 | $84,900 |
2003 | $87,000 |
2004 | $87,900 |
2005 | $90,000 |
2006 | $94,200 |
2007 | $97,500 |
2008 | $102,000 |
2009 | $106,800 |
1201.3What are the limits beginning in 1998?
Amounts for taxable years beginning in 1998 are subject to automatic increases in multiples of $300, if average total wages rise enough to cause a cost-of-living increase in benefits.
1201.4Where is the amount for the current year published?
The amount for a taxable year is published in the Federal Register on or before November 1, of the year immediately preceding that taxable year.
1201.5Are net earnings from self-employment and self-employment income the same?
Net earnings from self-employment and self-employment income are not the same. Only that part of net earnings that is included in the term “self-employment income” is subject to Social Security self-employment taxes and counted for Social Security benefit purposes. (However, even if net earnings do not count for these purposes, they are included in figuring the amount of benefits that must be withheld under the earnings test. See Chapter 18.)
Last Revised: Aug. 25, 2009