General Information Social security benefits.Social security coverage provides you with retirement benefits,disability benefits, survivor benefits, and hospital insurance(Medicare) benefits. Your payments of self-employment tax (SE tax)contribute to your coverage under the social security system. Socialsecurity benefits are available to self-employed persons just as theyare to wage earners. Credits.You must be insured under the social security system before youbegin receiving social security benefits. You are insured if you havethe required number of credits (quarters of coverage). For 1999, you received one credit for each $740 of income subjectto social security tax. It does not matter whether the income isearned in one quarter or is spread over two or more quarters. Themaximum number of credits you can receive for the year is four.Therefore, for 1999, if you had income (self-employment and wages) of$2,960 that was subject to social security taxes, you received fourcredits ($2,960 740). For an explanation of the number of credits you must have to beinsured and the benefits available to you and your family under thesocial security program, consult your nearest Social SecurityAdministration (SSA) office. Caution: You may be subject to penalties for making false statements to getor increase social security benefits. Social security number.You must have a social security number to pay SE tax. If you do nothave a number, apply for one on Form SS-5, Application fora Social Security Card. You can get this form at any SocialSecurity office or by calling 1-800-772-1213. If you have a social security number from the time you were anemployee, do not apply again. Marbella Resenas de hotelIf you have a number but lost your card, file Form SS-5. Youwill get a new card showing your original number, not a new number. If your name has changed since you received your social securitycard, complete Form SS-5 to report a name change. Social Security Administration (SSA) time limit for postingself-employment income.Generally, the SSA will give you credit only for self-employmentincome reported on a tax return filed within 3 years, 3 months, and 15days after the year you earned the income. If you file your tax returnor report a change in your self-employment income after this timelimit, the SSA may change its records, but only to remove or reducethe amount. The SSA will not change its records to increase the amountof your self-employment income. Estimated tax.You may have to pay estimated tax. This depends on how much incometax and SE tax you expect to owe for the year and how much tax will bewithheld from your income. discount hotels in HamburgYou may have to pay a penalty if you do not pay enough estimatedtax by its due date. You must include the estimated SE tax in your estimated taxpayments. However, if at least two-thirds of your gross income in 1998or 1999 is from farming and you file your Form 1040 and pay all of thetax that is due by March 1, 2000, you do not have to pay any estimatedtax. See chapter 2for more information about estimated tax. Self-employment tax deduction.You can deduct half of your SE tax in figuring your adjusted grossincome. This adjustment only affects your income. It does not affecteither your net earnings from self-employment or your SE tax. To deduct the tax, enter on Form 1040, line 27, the amount shown onthe "One-half of self-employment tax" line of Schedule SE.