June 8, 2008 by admin

1206. Dividends on Stock and Interest on Bonds

1206.1 Are dividends on stock and interest on bonds included as earnings?

Dividends on stock and interest on bonds do not count for Social Security purposes, unless you receive them in the course of business as a dealer in stocks or securities.

Note: The term "bond" includes debentures, notes, certificates and other evidence of indebtedness issued with interest coupons or in registered form by a corporation. Bonds also include Government bonds.

1206.2 Is other interest included as earnings?

Other interest you receive in the course of business does count for Social Security purposes. For example, if you are a pawnbroker and receive interest on loans or a merchant and receive interest on accounts or notes receivable, you must include this interest in computing net earnings from self-employment.

Last Revised: March, 2001