You know that duck on television that advertises disability insurance? There is an even cheaper disability insurance you can get. If you are self-employed, you might think it is best if you have a crafty accountant deduct your income down to zero or close to it. You might be cheating yourself!
If you pay F.I.C.A. or self employment tax on only $6,400 in 2021, you got four quarters of Social Security Credits. If you have paid in twenty-out-of-forty quarters (five out of ten years) at this modest rate, you are insured for Social Security Disability. If you become disabled, not only will you get a check from the government each month, but after two years you’ll be eligible for Medicare just like people over age 65! That is great insurance and cheaper than anything on the market.
Do yourself a favor. Make sure you tell your accountant you want to pay taxes on enough income to get your four quarters credit each year. If you run it down to zero, you are cheating yourself!