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  #6  
Old 04-13-2004, 07:37 AM
TaxmanHog
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Default Re: SE Tax for gov't worker

"Phil Marti" wrote:

- quote -

> Oh, you whippersnappers!
> Don't worry, your joints will go too.


Thanks for the Viox, it's helping my carpel tunnel syndrome

- quote -

> IIRC the change was for employees hired on or after
> 1/1/1984. We geezers were given a chance to convert to the
> new system (FERS).


Assume you did not convert, as many of the ol timers in my
office did not, they are all retired now and are quite
happy.

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  #5  
Old 04-12-2004, 07:39 AM
Phil Marti
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Default Re: SE Tax for gov't worker

- quote -

> > Federal employees who are covered by CSRS are not covered by
> > Social Security and don't pay SS tax on their Federal
> > earnings. They do pay SS on self-employment earnings or
> > earnings from a second job.


> Though your statement applies the majority of {OLDER} civil
> servants, in time most will be covered by the FICA
> I was hired in 1986,


Oh, you whippersnappers! Don't worry, your joints will go
too.

IIRC the change was for employees hired on or after
1/1/1984. We geezers were given a chance to convert to the
new system (FERS).

Phil Marti
Topeka, KS

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  #4  
Old 04-08-2004, 08:03 PM
TaxmanHog
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Default Re: SE Tax for gov't worker

- quote -

> Federal employees who are covered by CSRS are not covered by
> Social Security and don't pay SS tax on their Federal
> earnings. They do pay SS on self-employment earnings or
> earnings from a second job.


Though your statement applies the majority of {OLDER} civil
servants, in time most will be covered by the FICA

I was hired in 1986, many of us youngins are covered by
FICA, I have regular SSTAX & MEDICARE tax W/H from my salary
just like civilians, in addition to a special pension
contribution and my TSP (federal version of a 401k plan).

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  #3  
Old 04-07-2004, 10:44 AM
Harlan Lunsford
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Default Re: SE Tax for gov't worker

TL wrote:

- quote -

> Client and wife work for the social security administration.
> Each earn approx $85,000. Their social security wages and
> tax are zero (they get a pension instead). They pay
> medicare. Client now has a Sch. C, of which there is income.
> He claims he does not have to pay the social security tax on
> it, for the above reasons. I've never heard of this. Anyone?


Ask him for chapter and verse to confirm.

Of course you and I know there is none. So prepare the
return the right way.

Cheer$,
Harlan Lunsford, EA n LA

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  #2  
Old 04-07-2004, 08:49 AM
Phil Marti
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Posts: n/a
Default Re: SE Tax for gov't worker

"TL" <cokeshades[at]hotmail.com> writes:

- quote -

> Client and wife work for the social security administration.
> Each earn approx $85,000. Their social security wages and
> tax are zero (they get a pension instead). They pay
> medicare. Client now has a Sch. C, of which there is income.
> He claims he does not have to pay the social security tax on
> it, for the above reasons. I've never heard of this.


To borrow from a recent President, it depends on what you
mean by "this."

Federal employees who are covered by CSRS are not covered by
Social Security and don't pay SS tax on their Federal
earnings. They do pay SS on self-employment earnings or
earnings from a second job.

Phil Marti
Topeka, KS

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  #1  
Old 04-07-2004, 08:11 AM
Dick Adams
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Posts: n/a
Default Re: SE Tax for gov't worker

"TL" <cokeshades[at]hotmail.com> wrote:

- quote -

> Client and wife work for the social security administration.
> Each earn approx $85,000. Their social security wages and
> tax are zero (they get a pension instead). They pay
> medicare. Client now has a Sch. C, of which there is income.
> He claims he does not have to pay the social security tax on
> it, for the above reasons. I've never heard of this. Anyone?


If we all got together and created a retirement scheme
similar to Social Security, within five years we'd all
be in prison for running a Ponzi scheme!!

SS is such a scam that it's own employees are exempt from
being fleeced by it. And then one of them thinks he's
exempt from self-employment tax. Wow maybe he thinks he's
also exempt from capital gains tax.

Let him file his own return and then sell tickets for his
audit <G
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Old 04-07-2004, 08:11 AM
TaxmanHog
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Posts: n/a
Default Re: SE Tax for gov't worker

"TL" <cokeshades[at]hotmail.com> wrote:

- quote -

> Client and wife work for the social security administration.
> Each earn approx $85,000. Their social security wages and
> tax are zero (they get a pension instead). They pay
> medicare. Client now has a Sch. C, of which there is income.
> He claims he does not have to pay the social security tax on
> it, for the above reasons. I've never heard of this. Anyone?


They are CSRS participants, this status DOES NOT exempt them
from self-employment INCOME TAXES or SE TAXES!

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  #-1  
Old 04-05-2004, 10:45 PM
TL
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Posts: n/a
Default SE Tax for gov't worker

Client and wife work for the social security administration.
Each earn approx $85,000. Their social security wages and
tax are zero (they get a pension instead). They pay
medicare. Client now has a Sch. C, of which there is income.
He claims he does not have to pay the social security tax on
it, for the above reasons. I've never heard of this. Anyone?

Thanks
Todd
TLPCPA[at]Hotmail.com

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