§412 Self-employment income credited to calendar years

Summary

Tells how to assign self-employment income to calendar years and quarters when figuring average monthly wage and quarters of coverage. For taxable years that begin before 1978: if the taxable year is a calendar year, split the year’s self-employment income equally into the four calendar quarters. If the taxable year is not a calendar year, split the income equally among the calendar quarter that contains the taxable year’s end and the up to three earlier quarters that overlap the taxable year. For taxable years that begin after 1977: if the taxable year fits inside one calendar year, put all that income in that calendar year. If the taxable year spans two calendar years, divide the income between those two years by the number of whole months of the taxable year that fall in each calendar year. If an individual makes the special election described near section 411(a)(16) for a taxable year that spans two calendar years, allocate the deemed self-employment income between the two years using the same proportion based on amounts under section 413(d) and the lower limit in section 411(k)(1).