Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1956-01-26
New Social
Security Plan
Is Explained

There are about 1000 self
employed farmers in Montgomery
County who have completed their
first year under the social secur-
ity program, says John G. Kulick
of the local social security office.
The farmers have begun earn
ing the same protection that has
been available to people in indus
try and many other self-employed
people There are responsibilities
that must be met by every farm
operator who had net earnings of
$500 in the calendar year 1855,
Mr. Kulick says.
If you are self-employed in any
kind of agriculture, either alone
or in partnership, and had net
earning of at least $500 in 1855,
you are required to report your
earnings up to $4,000 and pay the
three percent social security tax
on those earnings for the year
You should report your earn.
ings and remit the social security
tax along with your Federal in
come tax return not later than
April IS.
1t may be that you will not owe
any Federal income tax for 1855,
because of family exemptions.
For example, if your total income
for the year is less than $2400,
you would not owe income tax if
you have four exemptions. How
ever, if your net earnings were
Jas much as $500 in 1855, you are
aobliged to fill out and file a re-
turn and pay the social security
tax.
A self-employed farmer should
file his return on Income Tax
Return Form 1040. In most cases
she will enter his net earnings
from farming on Schedule F,
"Schedule of Farm Income and
Expense" of this form.
In cases where the farm opera
tion is a partnership, he will
enter his distributive share of the
partnership farm income on
Schedule H, for income tax re-
porting, and on Schedule c, for
social security purposes.
His distributive share of the
income will be obtained from
Form 1865, ~. S. Partnership Re-
turn of Income" which was filed
by the partnership.
Farmers who operate alone
and on a cash basis will enter
their income from farming on
Schedule F. On Schedule F you
will itemize your farm income
and expenses for income tax pur-
poses. At the bottom of the last
page of this schedule is a smaller
form, Schedule Sc, ~. S. Report
of Self-Employment Income"
Schedule Sc is the report of
your self-employment net earn
ings which will be credited to
your social security 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 employer
has deducted your share of the
social security tan and the
amount of your self-employment
income on which you must pay
the social security tax.
There is one important fact to
keep in mind. While the small
form Schedule Sc is a part of
Schedule F which, in turn, must
be filed with Income Tax Return,
form 1040, the purpose of this
brief form is wholly independent
of your income tax form and
schedule.
The earning on which social
security tax is due should be
entered on Schedule Sc. For rea-
sons described above, this amount
may differ from the amount used
to figure income tax.
Further information regarding
social security may be secured
by writing or calling at the Social
Security District Office serving
Montgomery County located at
8605 Cameron Street, Room 400,
Silver Spring. Mr.. Kulick will be
at the County Office Building
Auditorium, Rockville, every
Wednesday from 10 am. to 2 pm.
DickpreOn HOrD