A farmer, let’s call him Old Mac, reached age 65 in July 1961 and filed for social security retirement benefits. He needed 13 quarters of coverage in order that qualify for benefits.

His earnings record showed eight quarters of net earnings from self-employment for the years 1957 and 1958.

He had net earnings of $200 in 1959 and a net loss of $300 in 1960. In each year his gross farm earnings were greater than $1,800.

A provision in the law allowed self-employed farmers who had gross earnings greater than $1,800 and net earnings of less than $1,200 in any year to elect to report deemed earnings of $1,200 for social security purposes, as long as he or she took appropriate action within 5 years 3 months and 15 days of the year in question.

Old Mac timely filed the appropriate paperwork to report deemed net earnings of $1,200 for the years 1959 and 1960. Having done so, he had sixteen quarters of covered employment, and thus qualified for old age social security insurance benefits.

See Social Security Ruling (SSR) 62-32.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.