I'm turning 65 in 3 months and wants to sign up for Medicare. I have been self-employed, owning a S-corp with my husband. After applying online, we were instructed to go down to the local office to show proof of birth certificate/citizenship and tax returns for work history. The agent at the local office looked through the tax returns that I brought and asked me where my schedule C was? That question caught me off guard as it was always my husband and our CPA who does our taxes. The agent gave my tax returns back to me and told me to go home and bring her specifically 2012, 2013, and 2014 tax returns with schedule C to "bona fide"( her exact words) my self-employment that I didn't just made it up.
I went home panicking and called our CPA....as it turned out, many of you reading this with a business/accounting background should already know. S-corps get a K-1 and report it on a schedule E!! No wonder I don't have a schedule C but every single year we report a schedule E in our tax return. What I don't get is, clearly my schedule E was part of my tax return and the agent seemed to look through every page of it. Does she not understand a schedule C is not required for my tax situation?
She thinks she knows...but she really doesn't. Now I just wonder what she's going to say when I go back to tell her the correct answer why I never had a schedule C. Or if she's going to insist on I need and missing a schedule C to prove my self-employment status??
I went home panicking and called our CPA....as it turned out, many of you reading this with a business/accounting background should already know. S-corps get a K-1 and report it on a schedule E!! No wonder I don't have a schedule C but every single year we report a schedule E in our tax return. What I don't get is, clearly my schedule E was part of my tax return and the agent seemed to look through every page of it. Does she not understand a schedule C is not required for my tax situation?
She thinks she knows...but she really doesn't. Now I just wonder what she's going to say when I go back to tell her the correct answer why I never had a schedule C. Or if she's going to insist on I need and missing a schedule C to prove my self-employment status??