Home Improvement Contractor - Licensed Contractors
If you are an independent contractor is there a benefit of increasing your income right before retirement?
If I am an independent contractor who is planning on retiring in 3 years, will significantly increasing my income for the next 3 years dramatically increase my Social Security Retirement benefits?
Public Comments
- So, you plan to bust your gut making more money? Remember, you must *still* deduct all legitimate expenses incurred in earning that money. When you retire, the SSA does a calculation using your 35 highest years. Then it divides by 420 to get your monthly income (there's an adjustment for inflation, but it's not worth going into). The first $711 is credited at 90%, the amount from 711 to 4288 is credited at 32% and anything above 4288 is credited at 15%. So, if you are already in the highest bracket, earning $10,000 more would make a difference of $3.57 a month.
- Dramatic, no. Incremental, yes.
