Let me set the reocord straight here about SS being the culprit. Johnny's well aware of what is meant when I say SS being the culprit.
Yes SS is a seperate tax, but Johnny is convoluting and purposely twisting what I have been saying for several years. What I've been saying is when you earn 3121(a) "wages", from participating in an ALL
voluntary welfare program sponsored by the US federal government, you are also earning 3401(a) "wages". These "wages" are evident on every W2. The purpose of chapter 24 (where the 3401(a) "wages" definition is located) is for "withholding" and "deduction". Its these 3401(a) "wages", and 3401(a) "wages" only, that are subject to the withholding and deductions
for the Section 1 federal income tax imposition. Anything outside the chapter 24 3401(a) "wage" definition (definitive scope) is exempt from withholding and deductions.
Heres the title to chapter 24:
26 USC Chapter 24 - COLLECTION OF INCOME TAX AT SOURCE ON WAGES
So naturally any element
found in the definition of 3401(a) "wages" (which happens to be the "object"
of chapter 24) is going to be subjected to "withholding and deduction" (which happens to be the "subject"
of chapter 24), basically the collection of tax as the title the suggests. Subject
is "withholding and deductions
" (collecting) on the object
of a defined nature.
So now that we know the purpose of chapter 24 is subjecting a defined "wage" to "withholding" and "deducting" what does this have to do with Social Security might you ask? Well it all comes down to the elements
of what makes up 3401(a) "wages". Until the 1939 revised tax code there never was a chapter 21 (Social Security) found in Title 26. Yes, Chapter 21 is strictly about the collection of Social Security payments, however, when it comes to the chapter 24, the same 3121(a) "wages" elements
used to determine SS taxes are also found in the 3401(a) "wages" definition. Not only are elements of 3121(a) "wages" found in 3401(a) so are ALL elements
that make up the definition of 3121(b) "employment".
What these elements
of 3121(a) and 3121(b) that are found in the definition of 3401(a) "wages" indicate is that Social Security is very much apart of chapter 24's 3401(a) "wages" that makes up the definitive "object" the IRS is authorized to collects from.
So the question of earning a living that is taxable or not taxable is.........to be 3121(b)"employed"
or not to be 3121(b) "employed"
I just want to thank our resident clown, Johnny, for allowing me to set the record straight about what I've been saying about Social Security. With that said, any astute individual can see that johnny doesnt have a damn clue what-so-ever when it comes to saying:
But SS is a separate tax and you can be held liable for one and not the other.
Its a no brainer to see if you are earning 3121(a) "wages", because you voluntarily particiate in Social Security, you are effectively earning 3401(a) "wages" which the government subjects to withholding and deducting because 3121(b) "employment"
is an excise
taxable activity (see 26usc 3111 and then 26usc 3101 that 3121(a) "wages" are only in respect to being 3121(b) "employmed"
which is participating in Social Security).
Outside of participating in Social Security payroll earnings are not in respect to 3121(b) "employment". Therefore none 3121(a) "wages" do not qualify as 3401(a) "wages" and therefore are not subject to government withholding and deducting.