If you are self-employed, it is very important to report your income and pay your taxes. If you do not, you could land in big trouble with the Internal Revenue Service. Additionally, when you reach retirement age or should you become disabled you won't be eligible to receive Social Security income.
Many are unaware of this requirement and are very surprised when learning at retirement age that they are ineligible to acquire benefits. You must earn a minimum of 40 Social Security credits to qualify for benefits.
You can earn a maximum of four credits per year by working traditionally when your employer deducts Social Security taxes from your pay. You could earn this number of credits in less or more time, since it hinges on your total wages (You can request a copy of your Social Security statement which exemplifies the number of credits you have accumulated by creating and logging into your Social Security account).
The Social Security Administration could and should better educate the public about this via televised commercials, radio ads, and other synonymous correspondence. Unfortunately, the need to acquire predetermined Social Security credit has not been taught in financial literacy programs like high school and post secondary economics courses, et cetera, when it most certainly should be...
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