Skip to comments.Setting Up a Casual Pay SS Account
Posted on 09/14/2020 3:22:51 AM PDT by knarf
My wife and I were were discussing SS in the Philippines vs. The USA ....
We live now on MY SS and her wages (less than 20K a year), but Our age difference is now a matter of conversation and concern.
I've been to the SS site, but I figured I'd bounce it off of the smartest people I know;
SHOULD she set up a quarterly, self-employment payment schedule with the IRS ?
HOW should she do it ?
As of now, we live comfortably, but there is a real possibility I die before she's eligible for widows' SS benefits leaving her on her wages alone, which would be either impossible or a hardship.
Any help is appreciated.
Thanx, in advance
Speak with a tax attorney before you do anything else.
If she’s never paid taxes on that income you have bigger issues to worry about.
Looks like the only way you score with SS is if you’re married. Read over the SS website and chat with an advisor.
Is her work being done now in the US or the Philippines?
There are about four million widows and widowers receiving monthly Social Security benefits based on their deceased spouse’s earnings record. For many of those survivors, particularly aged women, those benefits help to provide the necessities of life.
Widows and widowers can receive:
Reduced benefits as early as age 60 or full benefits at full retirement age or older.
If widows or widowers qualify for retirement benefits on their own record, they can switch to their own retirement benefit as early as age 62.
Benefits as early as age 50 if they’re disabled AND their disability started before or within seven years of your death.
If a widow or widower who is caring for your children receives Social Security benefits, they’re still eligible if their disability starts before those payments end or within seven years after they end.
Benefits at any age, if they have not remarried, and if they take care of your child who is under age 16 or disabled and receives benefits on your record.
If a widow or widower remarries after they reach age 60 (age 50 if disabled), the remarriage will not affect their eligibility for survivors benefits.
why are you moving?
While I am sure the IRS is willing to take your money, they do not want people paying anyone cash off the books. Also, there are a plethora of state and even local laws that prohibit paying cash. Your wife may be required to obtain a bond. Theoretically, this is to protect would be employers. In practical terms it was rent seeking on the part of companies that sell bonds.
On the other side of the coin, a friend took his company legit. When he declared he had several employees the clerk asked how long he had been in business. He said ten years. Poof! He owed ten years back taxes and penalties. Another time he made no money that week, and so didn’t turn in any state paperwork. He was fined over $10,000 for failure to turn in paperwork that would have said no he made no money that week.
It is dangerous to get any government entity involved in your life. This is a problem for a tax attorney.
Also, perhaps what you want is a life insurance policy rather than anything to do with the government. Caution here as the policy gets very expensive as it gets closer to the fact you might use it.
We’re in the US, and no ... it was the conversation starter, that’s all.
Your friend should have said, “I’m starting a new business.....”, which wouldn’t be untrue if never legit before.
Get life insurance would be the way to go vs. dealing with the government.
That’s true. He thought he was having a chatty conversation with a very helpful, pleasant clerk. He had no idea what he was getting into.
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