Milford chronicle., 1956-04-06
Social Security Explains
Set-up For Farmers
Benefit
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1
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ed by social security on the crop
from the land which you retained
for your own. 1t makes no differ
ence whether you live on the farm
You may live in town and turn the
day-to-day operation of the farm
over to one or more employees and
still be self-employed.
Share Cropper
If you farm someone else's land
on shares under the conditions list
ed above, you are considered self
employed for social security pur-
poses. Remember that all four con-
ditions must be met for this rule
to apply. If any one of the condi-
tions are not met, you would not
necessarily be self-employed. ID
you are farming under a partner
ship arrangement, both of you are
self-employed. On the other hand,
you may be an employee of the per-
son for whom you are doing the
farm work.
Renter
Some farming is done on rented
land A landowner may decide to
rent his entire farm, say for $40
per acre. The landowner takes no
part in the daily farming opera
tions. The renter decides what to
plant, how to cultivate and when to
harvest. In rental cases like these,
the landowner receives rentals
from real estate and is not covered
by social security. The renter is
self-employed for social security
purposes.
Reporting
If you meet the definition of a
self-employed farmer as described
and had at least s40O net earnings
In 1866, you are covered by social
security. You must file a tax return
and pay the social security tax of
percent of your net earnings. The
maximum you pay on is $4 200. The
forms needed to file returns will be
provided by the District Director
Of Internal Revenue. Be sure to en-
ter your social security number on
your return. If you do not have a
number get one from your nearest
social security office
Self-employed farmers must file
tax return and pay the self-em-
ployment tax even if they owe no
income tax. They can't get social
security credit fer their self-em-
ployment earnings unless they COM
ply with this prOviSiON of the law.
A seh-employed farmer must file
his return and pay the tax by
April Is at the latest.
The amount you report is your
net earning gs-or prOfit-after you
subtract your farm expenses from
your gross income. But if your
gross income is $500 or less, and
you report on the cash basis, you
have the choice between reporting
your actual net earnings or report
ing half of the gross income. You
can report either way.
If your gross income is over
$500, you must figure your actual
net earnings. If these net earnings
are less than $500 you have q
choice. You may either report the
actual amount or 5000.
How Long VIII 1t Take To
Become Insureds
Farmers newly covered by the
law will be interested in knowing
how long it will take them to be.
come insured and have old-age anl
survivors insurance protection fol
themselves and their families. A
newly-covered farmer will be in.
sured beginning April /. 1856, il
his net farm earnings are at leas
$400 in 1855 and $400 in 1856
| Earnings for 1856 can be based OF
1855 crops sold in 1850. This viii
enable him to get retirement in
surance benefits if he is now age
So and will give his family protec.
ton in case of his death, ever
though he is under age IS. No re
tiremeEt payments may be made
however, before the farmer reache:
age 65. A young farmer, like othel
younger workers, must continue tx
get social security credits as later
years pass in order to maintain his
insured status. After ten years o,
4 NQA n OOfCA CA ~ t1AC Jaw AC WI
remain insured for life, whether OF
not he engages in any more EN-
ployment or self-employment GOV
cred by the law. This means tha
some benefits will be payable IL
his old age, or in case of his death
The amount of the payments, how
ever, will depend ON his average
earnings.
What This Means For The
Farm Family
Farm earnings will count toward
social security benefits for mos
farmers and their families-towarC
monthly payments in old age lever
if the farmer is already IS or over
and monthly payments to surviv-
ors in case of the breadwinner:
death.
If you would like more inforna-
ton, contact your social security
| district Office in Wilmington