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Old 10-15-2015, 09:10 AM
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On Disability & Sell on eBay.. Claim it?

I am currently receiving SSD. I have health issues that inhibit me from leaving my home. I wanted to know if I could sell things on eBay? Would that count as income and therefore make me lose my benefits? Do I file taxes for any earnings from eBay?



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Old 10-15-2015, 06:49 PM
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I am currently receiving SSD. I have health issues that inhibit me from leaving my home. I wanted to know if I could sell things on eBay?=====>Of course. The self-employed people who own their own businesses or do freelance work ALSO are usually eligible for Social Security disability benefits . thare is NO law to prevent you doing your self employment biz.UNLESS you set up your biz as S or C corp or LLC, partnership, you need to file SCh C of 1040 aslongas the amt reported on Sch C line 29 / 31 is $400 or exceeds $400 and also need to pay your self employment tax aslongas the amt reported on Sch SE line 2 / 3 is also $400 or exceeds $400.

Would that count as income and therefore make me lose my benefits?=======> In general, The amount of SSD you receive each month is based on your average lifetime earnings before your disability began.aslongas you have self emloyed biz, then, your disability amount is based on your reported earnings from either self-employment or from work as an employee, not on your work credits. Work credits simply allow you to qualify for benefits. They do not determine the amount of those benefits.
Your actual SSD benefits amounts are computed based on your “average indexed monthly earnings” Your AIME is calculated using a highly complex formula that takes into account factors ,i.e., the average wage earned by workers in your indexing year; the average wage of workers in your computation base years, and your actual dollar amount earned.



Do I file taxes for any earnings from eBay?======>>As said above. It depends on your MAGI so called provisional income to determine if you MUST pay tax on your SSD benefits; for example, If you are married and you file jointly, and you and your spouse have more than $32K per year in income including 50% SSDI benefits, I guess, a portion of your SSDI benefits, up to 50% of the bebnfits is added to your taxable income are subject to tax. If your MAGI is more than $34K then up to 85% of your SSD beenfits is added to your taxable icnoem.If you are single, and you have more than $25K in income per year, a portion of your SSDI benefits , 50%, if it exceeds $34K then up to 85%, will be subject to tax. MAGI is 50% of your soc sec di benefits plus AGI.
How big a portion of your SSDI benefits are subject to tax depends on how high your income, MAGI(provisional income) is.



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