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If one does a lot of buying and selling of stock on short term and the person is considered a trader under the tax law and it is taxed as ordinary income does this count toward income earned for social security purposes?
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<< If one does a lot of buying and selling of stock on short term and the person is considered a trader under the tax law and it is taxed as ordinary income does this count toward income earned for social security purposes? >>

"Trader" status is a term of art in tax law. Traders report on Schedule C, the bottom line of which feeds Schedule SE, which is where self-employment tax is calculated. Yes, this income is net earnings from Social Security and credited to your earnings record.

You can read a lot more about trader status at http://www.fairmark.com and on the Tax Strategies message board here at TMF.

TMF ExRO
Phil Marti
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