Income from P2P lending is reported on forms 1099-INT, 1099-B, 1099-MISC and 1099-OID. Are any of these earnings subject to Social Security or Medicare taxes in any way? I have heard from people they are not, but I can't find anything online to confirm it.

  • Strictly speaking, no, but on a technicality. I think you are asking if it would be subject to self-employment tax. – chepner Oct 9 '19 at 17:18
  • @chepner Well isn't Self employment tax just Social security and medicare, and that is what I need to know, thx, I'll edit my question to reflect, please answer if you can. – rcasady616 Oct 9 '19 at 20:41
  • That's where the money goes; it's just collected differently (paid with your income tax, rather by being withheld/paid by your employer). – chepner Oct 9 '19 at 20:42
  • Self-employment tax is, in effect, twice the SS and Medicare tax since you have to pay both the employer's sure as well as the emoloyee's share. – Dilip Sarwate Oct 11 '19 at 19:55

I asked my account and he confirmed that it is investment income and not subject to Social security and medicare taxes.

I guess I should have just done that in the first place instead of waiting a week. Any way I'm sure someone will need this information and god knows it not easy to find. anyway thx to @chepner for helping clarify my question, wish just someone could have answered it so I didn't need to talk to my accountant. Cheers!

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