eBay income and SSD reporting
SunshineLady
It is not a constant or dependable income source as you can go
days and even weeks with minimal to no profit. Would you wait until the
end of the year and then do a total accounting and then report that??
Any and all help with this question is really appreciated. Thanks in
advance.
Sun
Kiyoshi Anrui
wrote:
Self-employment is typically averaged over the taxable year. Both
income and expenses can vary drastically from month to month in some
small business. Therefore, averaging is the only equitable choice
available when determining SGA. Number of hours worked can also enter
into whether SSA consider your work to be at SGA.
--
Kiyoshi - The reverse side also has a reverse side
The purpose of life is a life of purpose.
Robert Byrne
Bro Jack
wrote:
>How do you report eBay income to Soc Security??
You raise an interesting question.
For SSA purposes, you are self-employed if you engage in a trade or
business. Are you engaging in a trade or business? Does IRS require
you to file a self-employment tax return based on your eBay
activities? If so, you are responsible for notifying SSA when your
activity commences, not at the end of your calendar/fiscal year.
You can be engaging in SGA without making any profit if your efforts
are comparable to those of unimpaired persons in your community who
are doing the same or similar business activities, or if your efforts
are reasonably worth over $810 a month even though actual earnings are
less or none.
So, the first issue is: Are you engaging in a trade or business?
Jack
______
PS -- Now that this phenomenon known as the Internet allows people to
make money, I suspect that SSA's policy people and general counsel
will eventually revise their policies on what constitutes work
activity. They may even change their medical policies, e.g., the way
they view agoraphobia.
___
D.F. Manno
"SunshineLady" <s...@shineonus.org> wrote:
Are you even realizing income? If you're just selling items you have
around the house, and selling them at less than your cost, you have no
income.
If you're buying items to resell them on eBay, that's a different story.
--
D.F. Manno
domm...@netscape.net
"They that can give up essential liberty to obtain a little temporary
safety deserve neither liberty nor safety." (Benjamin Franklin)
Kiyoshi Anrui
wrote:
>For SSA purposes, you are self-employed if you engage in a trade or
>business. Are you engaging in a trade or business? Does IRS require
>you to file a self-employment tax return based on your eBay
>activities? If so, you are responsible for notifying SSA when your
>activity commences, not at the end of your calendar/fiscal year.
Hi Jack. When does this notification kick in? When you start working
or when you start earning over the TWP base amount? Any good links
that will give more details? Thanks.
Bro Jack
<kiy...@uma.no.hone> wrote:
>On Fri, 09 Apr 2004 12:18:41 GMT, bro...@windswept.org (Bro Jack)
>wrote:
>
>>For SSA purposes, you are self-employed if you engage in a trade or
>>business. Are you engaging in a trade or business? Does IRS require
>>you to file a self-employment tax return based on your eBay
>>activities? If so, you are responsible for notifying SSA when your
>>activity commences, not at the end of your calendar/fiscal year.
>
>Hi Jack. When does this notification kick in? When you start working
>or when you start earning over the TWP base amount? Any good links
>that will give more details? Thanks.
The best link (except for the SSAct:
http://www.ssa.gov/OP_Home/ssact/title02/0200.htm
where your reporting responsibilites are not specifically addressed)
is the regulation itself, which is legally-binding on everyone,
including the courts (unless ruled unconstitutional, of course).
_____
http://www.ssa.gov/OP_Home/cfr20/404/404-1588.htm
§404.1588 Your responsibility to tell us of events that may change
your disability status.
If you are entitled to cash benefits or to a period of disability
because you are disabled, you should promptly tell us if—
(a) Your condition improves;
(b) You return to work;
(c) You increase the amount of your work; or
(d) Your earnings increase.
_____________
The requirement is also probably mentioned in non-legal, non-binding
issuances such as the redbook, SS Handbook, and cute little pamphlets
the clerks prepare.
Jack
Kiyoshi Anrui
wrote:
>The best link (except for the SSAct:
>
> http://www.ssa.gov/OP_Home/ssact/title02/0200.htm
>
>where your reporting responsibilites are not specifically addressed)
>is the regulation itself, which is legally-binding on everyone,
>including the courts (unless ruled unconstitutional, of course).
>_____
>http://www.ssa.gov/OP_Home/cfr20/404/404-1588.htm
>
>§404.1588 Your responsibility to tell us of events that may change
>your disability status.
>If you are entitled to cash benefits or to a period of disability
>because you are disabled, you should promptly tell us if—
>
>(a) Your condition improves;
>
>(b) You return to work;
>
>(c) You increase the amount of your work; or
>
>(d) Your earnings increase.
>_____________
>
>The requirement is also probably mentioned in non-legal, non-binding
>issuances such as the redbook, SS Handbook, and cute little pamphlets
>the clerks prepare.
>
>Jack
Thanks for providing the links, Jack. I've never bothered to report my
income to SSA. I've also never reached SGA or TWP (self-employment is
great and I love my new Tablet PC). However, SSA did increase my SSDI
benefit amount based on paying employment taxes on earned income when
filing federal income taxes. So, apparently they are aware of my
earnings. I figured that if I never came close to the TWP base that
they wouldn't care. Now, after nine years, do I want to break
tradition and tell them? <g> Thanks again for all of your great
information over the years.
Bro Jack
>How does all this work for SSI?
SSI requires you to report also. Their reg. says the same thing as
the one below except that it's numbered 416.988.
You cannot be terminated for SGA while on SSI but your earnings may
exceed the income limitation tolerances. Also, it could trigger a
medical review.
Keep in mnd, however, the various work incentive exceptions for both
SSI and SSDI.
Jack
>
>On Fri, 09 Apr 2004 15:44:50 GMT, bro...@windswept.org (Bro Jack)
Bro Jack
<kiy...@uma.no.hone> wrote:
> I've never bothered to report my
>income to SSA. I've also never reached SGA or TWP (self-employment is
>great and I love my new Tablet PC). However, SSA did increase my SSDI
>benefit amount based on paying employment taxes on earned income when
>filing federal income taxes. So, apparently they are aware of my
>earnings. I figured that if I never came close to the TWP base that
>they wouldn't care. Now, after nine years, do I want to break
>tradition and tell them? <g>
Unless a person had zero or very low earnings in one or more of his
divisor years, a benefit recalculation for a disabled beneficiary is
atypical. Most people have higher earnings before onset of
disability.
However, to have one's benefits recalculated upward without ongoing
SGA investigations especially where SE is involved is probably
something I've never encountered or even heard of.
Jack
Kiyoshi Anrui
wrote:
>Unless a person had zero or very low earnings in one or more of his
>divisor years, a benefit recalculation for a disabled beneficiary is
>atypical. Most people have higher earnings before onset of
>disability.
>
>However, to have one's benefits recalculated upward without ongoing
>SGA investigations especially where SE is involved is probably
>something I've never encountered or even heard of.
>
>Jack
I wish I had saved the letter SSA sent me about the increase. I even
got several months of back pay on the increase. Although, the increase
was only $7 per month. But they did do it right before the end of the
year so my annual COLA was based on the new higher amount.
I did have very low earnings and barely enough quarters to qualify
when I first applied in 1993. I had only five years of employment out
of the last ten and even that was sporadic and barely above minimum
wage type of jobs. My starting SSDI benefits were in the $560 range. I
believe I'm still on the low side of average at $704 per month after
ten years on SSDI.
My company now charges $50 per hour for my time (sole proprietor with
no employees). However, expenses averaged over the year have always
kept me within dollars below the TWP monthly base. I keep very close
track of my income and expenses to make sure I'm not running out on
December 31st to buy office supplies. <g>
I don't know if it makes a difference, but I am on the Ticket to Work
program. SSA canceled my last three-year review citing the Ticket to
Work program as the reason. Someone from SSA actually contacted me by
telephone to tell me it was canceled and why.
I'm set for an operation next month that should help me achieve my
goal of returning to work within the next year. While many people are
fighting to get on SSA disability, I'm fighting to get off it. And if
the surgery doesn't work and I can't make it back to work, marrying a
rich old lady about to kick off is my plan B. <g>