[newslady]

I am 80 years old and have been working as an independent contractor for the last year. I do hand writing for a non profit organization and deliver news papers. I would like to know how to file taxes for a 1099 mic. I receive social security and pay medicare out of my social security check. Do I still have to pay socical security and medicare taxes when I file taxes this year or do I even have to file taxes since I am retired and an over the age of 75. I have never done any thing like this before. I have been told by several people that since I am over 75 I don't have to pay taxes any more regardless of how much money I make as an independent contractor. I have also been told that since I am 80 years old that I don't have to pay any medicare or social security taxes if I do have to file taxes. Can you help me with this? Thanks

[AtlantaTaxExpert]

NewsLady:

I admire your enterprise to work while being 80-yeras old.

Unfortunately, this falls in the category of NO GOOD DEED GOES UNPUNISHED!

You WILL have to file a Schedule C to account for the Form 1099 income. If, after you deduct the expenses you accrued while earning the 1099 income, you should show a net profit, you will have to also file a Schedule SE if that profit exceeded $400.

Schedule SE is used to calculate self-employment tax, which is the Social Security and Medicare taxes TIMES TWO. The SE tax rate is 15.3% and it is paid by the self-employer, which, by definition, you are.

There used to be an offset on your Social Security benefits if you earned income while being retired. That, fortunately, went away several years ago. There is no penalty on your Social Security benefits if you earn outside income once you pass your optimum retirement age. Since the highest optimum retirement age is 69, you are well past that point.

A coupel of questions:

- Exactly HOW MUCH is reported on your 1099?
- How do you deliver your newpapers?
- What do you pay in terms of office supplies for your hand-writing profession?
- Do you use a computer for managing either the newpaper delivery and/or the writing?
- Do you have a cell phone that you use in either work?

You can email me this info at [email protected] (do NOT use the email below) if you do not want to reveal this information to the world.