7. Self-Employed Tax Evaders
If you’re a self-employed worker, you need to pay self-employment tax to cover both your own and the employer’s part of Social Security contributions so you can receive retirement benefits. By calculating the tax and paying it annually, the self-employed workers file their federal tax returns. Unless they do that, they will not receive Social Security benefits.
Unlike employees whose employers retain and remit Social Security taxes from each paycheck, those who don’t file income tax returns do not pay Social Security taxes. This means that you don’t have access to Social Security benefits if you haven’t declared your income and evaded taxes throughout your whole working life. Naturally, this special situation might also impact your credit card limits.
So glad to hear of this income increase. So many people are barely making it due to the inflation increase since Covid.