My friend works part time and made about $7000 in 2019. Some people have been telling them that she should file separately so she had record of taxes reported for herself and she would be able to collect social security. It sounded a bit off to me so I just wanted to get some confirmation. (FYI. Her husband works full-time and earns about 85K.)
- Would she have any taxes due?
- At that income level, does it matter for her if she files separately or not?
- Would she be paying social security tax? And, if not, from what I've searched online, you can't voluntarily pay into social security if you do not have any taxes due.
They are located in NYC.
She is what you would categorize as contract/freelance worker. She had no income tax or SS tax or Medicare tax withheld. She received 1099 for her earning. No W2. Since she has no taxes due, I am guessing that she won't be able to pay into SS, which means she won't be eligible for SS until she earns enough to pay taxes and matches other eligibility requirements.
BTW, what is the income amount that she'll need to start paying taxes? Is it when she earns above standard deduction?