Dear Soccertese,

I am always forgetting to write something and have to make additional post. Sorry.

How the SSA gets earning information........ If you are employed and receive a W-2, the employer files that information directly with the Social Security Administration each year. This does not go through the IRS but directly to the SSA. If you are self-employed, there is NO W-2 and the only place your earnings show up is on Schedule C of your 1040 form. This is when you have to rely upon the IRS to furnish the information to SSA.

If you have incorporated as a sub-chapter S corporation, you would be paying yourself a salary from the corporation and preparing a W-2 so I am assuming from your post that you are NOT and that your information is being reported on Schedule C of your 1040.

The IRS accepts your returns when filed late, they just will not provide any refunds beyond the 3 year limitation as I stated previously. I will do some research to see if there is any regulation in SSA rules that prohibit you from using any payments made for FICA and Medicare when reported late.

Did you pay any self employment taxes (social security and medicare) on the income you earned during the years that you were late filing your returns? If you forfeited refunds, I can only assume that you made estimated tax payments for unearned income that was mentioned regarding your Schedule D.

Keep in mind that SSA only cares about EARNED income, not UNEARNED income. It is only what is reported on Schedule C and Schedule SE that concern SSA. They do not care what your AGI was on your 1040 form. I should qualify that with "when looking at disability requirements". Your AGI may be considered for benefits that are means tested like supplemental income.