If you are 65 year old and have a business, do you have to pay tax on your business earning?

Question

If you are low SS income 65 year or older and have SSi/suplemental and you want to open business, would you have to pay tax on your business earning, and how your SSi would be calculated?

Answer 1

 

Answer:  

Question1 YES.

Age is not a factor. Gross income (from business earnings) is subject to income tax. 

Question2 YES.

Contact the Social Security Administration for more information about how SSI is calculated.

 

 

Answer 2

Elsa,

 

You pay taxes on profit from a business or from asset sales that exceed your personal exemptions, credits, permitted deductions, no matter how young or old you are.

 

If you are over 65 and receiving SSI monthly payments, a sliding percentage of the SSI becomes taxable as ordinary income if you have other wage or business or investment income to report as well.  That percentage gets to a maximum of 85% under current law, is computed by an IRS form and the result is carried into line#16 on IRS Form 1040.