A fiscal TY is a year that begins on other than January 1.

Some self-employment beneficiaries may also work for wages and report their total income on a fiscal TY basis. In such cases, calculate the amount of wages earned in the fiscal TY to determine total earnings for earnings test purposes.

When we know the amount of wages earned in each month of the fiscal year, add the sum of the monthly wages to the self-employment income to obtain total earnings for the TY. If we do not know the amount of wages earned in each month, prorate the amount shown on the W-2s for each of the two calendar years in which the fiscal year falls by the number of fiscal year months in each calendar year to obtain total earnings for the fiscal TY.

Sara Gibbons was self-employed for many years and filed fiscal year tax returns. Their fiscal year (FY) was from November 1 through October 31. Their current employment shows wages only, and they continue to report their wages to the Internal Revenue Service on a fiscal year basis. Sara's W-2 for 2010 shows $18,000 total wages. They expect to earn $24,000 in calendar year 2011 and $30,000 in calendar year 2012.

Their estimated earnings are determined as follows: