DW has 39 credits of SS. Easiest way to get 40?

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fortfun
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DW has 39 credits of SS. Easiest way to get 40?

Post by fortfun » Thu Dec 06, 2018 6:35 pm

Can I just start a home business and pay her an hourly wage and social security? In her current position she doesn't pay into SS. How much does she need to earn and for how long (3 months?).

terran
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by terran » Thu Dec 06, 2018 6:43 pm

$1320 in social security earnings will get you one credit in 2018: https://www.ssa.gov/planners/credits.html

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David Jay
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by David Jay » Thu Dec 06, 2018 6:48 pm

The easiest way is to work a part-time retail job. A lot easier than setting up all the paperwork to pay an employee.

How about a seasonal job (cashier at a greenhouse one spring...), the job only needs to be for long enough to earn $1320 (the 2018 amount, probably 30 or 40 bucks more in 2019). At $9 an hour (min. wage in my state) that is only 150 hours. 30 hours a week for 5 weeks.
Last edited by David Jay on Thu Dec 06, 2018 6:54 pm, edited 1 time in total.
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mhalley
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by mhalley » Thu Dec 06, 2018 6:49 pm

I believe she needs to earn $1360 for 2019, doesn’t matter the period of time.
.Calculating the Minimum Earnings to Receive a Credit:
As of 2017, the minimum has increased to $1300 for one credit. So, if in the first day, week, or month of 2017 you earn at least $5200 ($1300×4) you have met the minimum requirement to receive your four credits for the year. Anything else you earn during the year won’t count extra toward eligibility but will count toward how much your Primary Insurance Amount will be!

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David Jay
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by David Jay » Thu Dec 06, 2018 6:54 pm

My wife has 41 credits at relatively low pay jobs, but because SS pays 90% of inflation adjusted 35 year average on those initial dollars, her PIA is over $600.

Probably well worth working for 150 hours.
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Watty
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by Watty » Thu Dec 06, 2018 6:59 pm

Unless you already have some sort of business it would be easier for her to just work and pay the self employment taxes.

You would have to look into the details but she might be able to sell stuff on eBay and then declare that income.

At least around here a lot of places still have signs up that they are still hiring seasonal workers.

That might also make her eligible to make a retirement account contribution.

The detail with the amounts are here.

https://www.ssa.gov/oact/cola/QC.html

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segfault
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by segfault » Thu Dec 06, 2018 10:01 pm

Can she legitimately work as a "consultant" doing something for someone and just pay both the employee/employer side of the SS/Medicare taxes?

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fortfun
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by fortfun » Thu Dec 06, 2018 10:51 pm

Thanks everyone!

ResearchMed
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by ResearchMed » Fri Dec 07, 2018 4:52 am

fortfun wrote:
Thu Dec 06, 2018 6:35 pm
Can I just start a home business and pay her an hourly wage and social security? In her current position she doesn't pay into SS. How much does she need to earn and for how long (3 months?).
What would she be getting as Spousal benefits from your SS benefits?
And don't forget that the survivor will get the higher of each of your benefits.

Is there much for her to gain by your trying to get that last credit?
Just a thought...

RM
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HanSolo
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by HanSolo » Fri Dec 07, 2018 5:33 am

ResearchMed wrote:
Fri Dec 07, 2018 4:52 am
Is there much for her to gain by your trying to get that last credit?
How about Medicare eligibility?

Han Solo

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FiveK
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by FiveK » Fri Dec 07, 2018 5:37 am

ResearchMed wrote:
Fri Dec 07, 2018 4:52 am
Is there much for her to gain by your trying to get that last credit?
Medicare Part A is free with 40+ quarters of coverage. With 39 it costs $240/mo in 2019.

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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by ResearchMed » Fri Dec 07, 2018 5:56 am

Got it!

Wasn't thinking past the "SS income" part of this.

Thanks.

RM
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annielouise
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by annielouise » Fri Dec 07, 2018 7:22 am

FiveK wrote:
Fri Dec 07, 2018 5:37 am
ResearchMed wrote:
Fri Dec 07, 2018 4:52 am
Is there much for her to gain by your trying to get that last credit?
Medicare Part A is free with 40+ quarters of coverage. With 39 it costs $240/mo in 2019.
If you’re married and haven’t worked in a paying job:

If your spouse is at least 62 years old, and has worked at least 10 years paying Medicare taxes, you can enroll in Medicare when you turn 65, including premium-free Part A.
Also works for divorced or widowed (with time married stipulations).

Still, definitely worth her earning that extra credit for SS. She could also do her own business by selling crafts or babysitting or something like that.

GlacierRunner
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by GlacierRunner » Fri Dec 07, 2018 12:00 pm

Re: Medicare - while she isn't contributing to SS in her current position, she may be contributing to Medicare. Be sure to check that out too.

Ideas: Seasonal jobs for Christmas
Tax jobs for tax season
Summer jobs while children are out of school

Of course if you have your own business and can hire her either as an employee or 1099 that works too. I had a friend who cleaned and organized her husband's dental office daily/weekly so that she would be able to contribute to a 401k.

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fortfun
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by fortfun » Fri Dec 07, 2018 3:39 pm

ResearchMed wrote:
Fri Dec 07, 2018 4:52 am
fortfun wrote:
Thu Dec 06, 2018 6:35 pm
Can I just start a home business and pay her an hourly wage and social security? In her current position she doesn't pay into SS. How much does she need to earn and for how long (3 months?).
What would she be getting as Spousal benefits from your SS benefits?
And don't forget that the survivor will get the higher of each of your benefits.

Is there much for her to gain by your trying to get that last credit?
Just a thought...

RM
Thanks RM. I haven't paid into SS, just a pension.

pshonore
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Re: DW has 39 credits of SS. Easiest way to get 40?

Post by pshonore » Fri Dec 07, 2018 9:01 pm

It think OP said spouse works in a non SS job. That may cause a WEP problem for her benefit and a GPO problem for any survivor benefit (if there is one).

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