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Extension Number

C2-41

Description

Self-employment tax is imposed on net earnings derived from self-employment. That phrase is defined as gross income derived by an individual from a trade or business that the taxpayer conducts. However, rents from real estate and from personal property leased with real estate are excluded from the definition of net earnings from self-employment. Likewise, income from crop-share and/or livestock-share rental arrangements for landlords who are not materially participating in the farming operation are not classified as self-employment income subject to Social Security tax (and, thus, do not count toward eligibility for Social Security benefits in retirement).

Publication Date:

8-2014

Publisher:

Iowa State University Extension and Outreach

City:

Ames, IA

Language

en

Disciplines:

Agricultural and Resource Economics | Agricultural Economics | Agriculture Law | Public Economics

File Format

application/pdf

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