How to Pay Social Security if I'm Not Working

Track your tax payments carefully.

The Social Security Administration uses the taxes you pay during your working years to calculate the amount of money you receive when you retire. When you are temporarily unemployed, you are no longer required to pay any Social Security taxes. But that lack of taxation can also put you behind and make it that much harder to earn the credits you need to claim your future payments. Finding a way to pay into the system even without a traditional job allows you to keep earning money and keep building toward your future.

Instructions

1. Look for things you can do that would be considered self-employment. This can include working as a consultant, independent contractor or freelancer. When you work in this capacity, you are required to pay the self-employment tax, which includes both the employer and the employee portion of the Social Security levy. The amount you pay is used to calculate your future Social Security benefits.

2. Start your own business, using the knowledge and skills you already possess. If you are an experienced administrative assistant or secretary, you can work as a virtual assistant. If you are good at finding bargains, you can create a small business by buying goods and reselling them at online auction sites like eBay.

3. File your taxes to pay your self-employment tax and get credit for your Social Security payments. Report your freelance or business income on Schedule C and use your favorite tax preparation software to compute how much tax you owe.

References

• IRS: Self-Employment Tax