[Code of Federal Regulations] [Title 20, Volume 2] [Revised as of April 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 20CFR404.144] [Page 68-69] TITLE 20--EMPLOYEES' BENEFITS CHAPTER III--SOCIAL SECURITY ADMINISTRATION PART 404_FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE (1950 ) --Table of Contents Subpart B_Insured Status and Quarters of Coverage Sec. 404.144 How we credit self-employment income to calendar years for taxable years beginning after 1977. In crediting quarters of coverage under Sec. 404.143(a), we credit self-employment income you derived during a taxable year that begins after 1977 to calendar years as follows: (a) If your taxable year is a calendar year or begins and ends within the same calendar year, we credit your self-employment income to that calendar year. (b) If your taxable year begins in one calendar year and ends in the following [[Page 69]] calendar year, we allocate proportionately your self-employment income to the two calendar years on the basis of the number of months in each calendar year which are included completely within your taxable year. We consider the calendar month in which your taxable year ends as included completely within your taxable year. Example: For the taxable year beginning May 15, 1978, and ending May 14, 1979, your self-employment income is $1200. We credit 7/12 ($700) of your self-employment income to calendar year 1978 and 5/12 ($500) of your self-employment income to calendar year 1979.