Milford chronicle., 1956-01-20
Farmers Want To Know
BY MyrOn 1IilbOuer
District Manager Of the Wilmington
Social Security Office

In my previous article I told
how protection under the old-agt
and survivors insurance program
viii become a reality to so many
self-emplOyed farmers by mid-1956
Today, I want to tell about the re-
sponsibilites that go along with this
protection and which must be met
by every farm operator who had
net earnings Of at least S4O0 in the
calendar year 1855.
If you are self-employed in any
kind OF agriculture, either alone
or in a partnership or joint ven
ture, and had net earnings Of at
least S400 in 1855, you are re-
quired to report your earnings for
the year. You should report your
earnings and remit the social Sc
curity tax along with your Federal
income tax return not later than
April IS, 1856.
It may be that you will not owe
any Fedenal income tax for 1855,
because Of family exemptions. For
example, if your total income for
the year is less than $2.400 you
would not owe income tax If you
have four exemptions $500 each
for yourself, your wife, and two
children.) However, If your net
earnings were as much as $4O0
in 1855, you are obliged to fill out
end file return and pay the social
security tax.
oaIf ars,,,Tovyod For,,,o,. et,o,,l5
file his return on Income Tax Re
turn, Form 104O. In most cases, he
will enter his net earnings from
farming on Schedule F, Schedule
Of Farm Income and Expenses, -
Of this form. In cases where the
farm operation is a partnership
Of joint venture, he will enter his
distributive share of the partner
ship farm income on Schedule II
(for income tax repOrting) and on
Schedule G (fOr social security
puTposesJ. His distributive share of
the income will be obtained from
Form 1865, u. S. Partnership
Return of Income" which was
filed by the partnership.
Farmers who operate alone and
cash basis will enter their in
come from farming on Schedule F. |
On Schedule f you will itemize
your farm income and expenses
for income tax purposes. At the
bottom Of the last page Of this /
schedule is a smaller form, Sched- |
ule Sc, ~. S. Report Of Self-Fm-
plOyment Income" Cor Federal i
Old-Age and Survivors insurance.. /
Schedule Sc is the report of your
self-employment net earnings which
will be credited to your social Sc
curity account On this brief form
you will enter, in addition to your
name and social security account
number, the amount Of your total
net earnings from self-emplOyment.
wages (if any from which your
has deducted your share
Of the social security tax, and the
amount Of your self-emplOyment
income on which you must pay the
social security tax.
There is one importants fact to
Keep in mind While the small
,Orm Schedule Sc is a part of
Schedule Il which, in turn, must be
iled with Income Tax Return, Form
lO4O, the purpose of this brief form ]
is wholly independent Of your
income tax form and schedule. The
earnings on which social security
tax is due should be entered on !
Schedule Sc. For reasons described
above, this amount may differ from
The amount used to figure income
tax.
In my next article, / shall ex-
plain how you figure your net earn
Isgs which will be credited to your
social security account.
Self-employed farmers should
report their 1855 net income for
social security credit and pay the
5elf-employment tax not later than
April Is 1856 Watch for a full ex-
DlaRation of these reporting re-
luirements in later installment Of
his series.