Social Security and the Gig Economy
Side hustles are becoming ever more popular, as in renting out a space or driving for Uber or Lyft. Even a consulting gig has the potential to boost one’s income. Maurie Backman writes about a Zapier report from June 2022 showing 40% of Americans were holding down a side hustle. Those eager to obtain a permanent higher monthly Social Security benefit may want to jump on that bandwagon. Benefits in retirement hinge on wage history. But it’s not just wages from a salaried job that go into calculating your future monthly benefit. Whether you get a side hustle that withholds taxes from your wages or not, that income counts toward your Social Security benefits down the line as long as the IRS knows about it. Backman is clear– you have to report your income to the IRS even if you’re paid on a freelance basis. Full article here.