CASH BASIS STRATEGY TO MAXIMIZE FARMERS' SOCIAL SECURITY BENEFITS

摘要

U. S. Social Security benefits are based on the best 35 years of participation. Those who already have, or will soon have, 35 years of fairly level earnings may, especially if they own a business, possibly farming, be able to time their income recognition, possibly recognizing two years of income every other year, resulting in higher benefits. Frequently, but not always, there will be additional income tax. This paper explores the relationship between the additional income tax and the increased Social Security benefit in absolute and present value terms. For extremely low income individuals the benefits can be very positive.