Expert: Allen - 11/27/2006

Question
Hi Allen. I am 75 years old and I retired some years ago and have been receiving SS payments for a number of years. I earned some $ in real estate for a few years and although I filed a 1099 I did not make any SS payments. Now I am working part-time in a large retail store and they are deducting SS $. Should this be happening? Thanks.

PS - I am also an Allexperts expert - Bluebird Bob.

Answer
Social Security must be deducted from salary even if the individual is receiving benefits. I therefore believe the store is correct.

As far as the real estate earnings, you may be liable for Self Employment Tax (the name given to Social Security payments made by the owner of an unincorporated business) if the income is transferred to Schedule C (Form 1040).