Seller concerns
Hello. I’m concerned about this. If a disabled person receives SSI or SSDI (disability) a month and they have things they don’t want anymore and they wanna sell on eBay, I know eBay needs the seller’s SSN to verify their identity and they need the seller’s bank account for payouts but is there anyone out there who is on disability and sells stuff on eBay for personal reasons not business. Would it affect your disability benefits?
30 comments
jerseyboymusic
·1 year ago@shamo-7286 has a valid question...
I know my wife and I lost our Medicare a few months ago, the main reason we were given was our (Ebay only) income was too high. The issue was that Ebay lumps EVERYTHING (shipping and taxes) into the income report. The county Medicare rep for us didn't want to know that shipping and taxes were dispersed and not income.
They only went by the 1099 my wife got. My income was too low to kick out a 1099, but we report my income on our taxes.
So I get why the OP is asking this. They can lose some benefits
mam98031
·1 year agoI'm not sure how you battle that. Maybe get a statement from an IRS employee that is willing to explain to them that NO 1099K reports Gross sales or Gross income. It reports Gross Receipts which is NOT the same thing.
Gross Receipts is BEFORE any deductions are taken for selling fees, shipping, packaging materials, refunds to buyers for any reason, etc.
To lose your entire benefit, your amount on your 1099K had to be pretty high. I noted the income numbers that SS allows in Post # 21.
Had you in previous years always reported your income from the internet with or without a 1099K form being issued to you?
IDK if you really want to talk about this here as it is pretty personal, but if you do, there has to be more details to the story if you want to share them. I comply respect if you don't.
liawri-75
·1 year agoIf the person is concerned about getting a 1099 and reporting income, its better to have a yard sale or sell at a flea market. Because if the person sells more than $600 on EB, they will get a 1099.
mam98031
·1 year ago@liawri-75
It is just a darn form. If someone sells $599.99 on any internet site, they may not get a 1099K, but they are still responsible to report that income on their Federal Tax report.
mementomoria
·1 year agoAre you married? Just have your partner open an ebay account and you can do the work for the account. Everything is reported to your spouse so if there are taxes to be paid or anything else it is under their SS# and you have no worry about your benefits. I think in many cases their are husband and wife teams who work together and it is under one of the two person's name.
mam98031
·1 year agoWhat?? Why?? Oh no!! Not good to explain to someone how to cheat / defraud the government. Those are federal crimes.
gooseislandcollectibles
·1 year agoThe information posted below is pulled directly from the Social Security web site. Use it as you wish but if you need additional assistance, you can always call them. This is for Social Security not SSI so there may be a difference.
If you are younger than full retirement age and earn more than the yearly earnings limit, we may reduce your benefit amount.
If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2024, that limit is $22,320.
In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2024, this limit on your earnings is $59,520. We only count your earnings up to the month before you reach your full retirement age, not your earnings for the entire year.
I am 67 still work fulltime, collect full benefits and also sell on eBay.
mam98031
·1 year agoSo no one gets scared my the info you provided. In 2024 those that are not full retirement age can earn up to $22,320 in income before any reduction in benefits would kick in.
Once you are of full retirement, there is NOT a Cap on your earning.
What you read, but left out some important words was:
If you will reach full retirement age in 2024, the limit on your earnings for the months before full retirement age is $59,520. Starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits.
https://www.ssa.gov/benefits/retirement/planner/whileworking.html#:~:text=If%20you%20will%20reach%20full,and%20still%20receive%20your%20benefits.
az93
·1 year agoNo one on this community board can help you much. This is something your disabled friend will have to investigate and decide. As for your current listings, i kindly suggest you end the 99 cent items with free shipping.
mam98031
·1 year ago@shamo-7286
your SSI payments will be reduced by the SSA and potentially terminated. In 2024, the income limit for an individual is $1,971. The limit for a couple is $2,915. The 2024 asset limits for individuals and couples are $2,000 and $3,000, respectively.
https://www.investopedia.com/how-much-money-can-you-make-ssi-eligibility-5217422#:~:text=If%20you%20meet%20or%20exceed,are%20%242%2C000%20and%20%243%2C000%2C%20respectively.
As of 2024, you may stop receiving SSDI benefits if you earn over $1,550 a month. But your eligibility to receive SSI while working will depend on which state you live in.
https://www.usa.gov/disability-benefits-while-working#:~:text=But%20the%20benefit%20amount%20you,which%20state%20you%20live%20in.
Just do your homework and find what is an acceptable amount. Stay below those amounts and you should be just fine. Keep your books current so you know where you are at at all times.
To me it looks like you are well below those limits. Just keep good records, the details are important.
Don't depend on Ebay records. Keep your own records and look at Ebay records to support the numbers you have come up with.
https://www.ebay.com/sh/fin/reportslanding
an-57470
·1 year agoIt all depends. I’m on SSDI and SSI Disability after being removed from work back when I was 25. I get paid lowkey to take care of my sister’s basic medical needs, they deducted how much she gives me from my SSI Disability as it’s earned income. But I’ve sold over $2,000 worth of items between 2 eBay accounts this year alone just freeing up space as well. Then I unfortunately fell for a selling scam so I lost a $450 sale. Almost happened again and that’s why I have this account now. Old one is gone. Overall, though, eBay is not an official employer unless you’re working directly for the company. That’s why you don’t get an employers W-2 during tax season if you sell over their $600 threshold. They send a different tax return form, but it’s not an employers tax form that you’d have to report to the SSA. If you’re on SSI by itself, then yes, I’d talk to your case manager since SSI has big restrictions.
an-57470
·1 year agoUpdate:
Just found out I’ll be getting a Schedule C come tax season. So I guess it’s considered self employment. Cool, at least I know I’ll be able to report it when I have to. Learn sum’n new every day.
mam98031
·1 year ago@Anonymous
I'm not sure what that means. Usually you have to get your own tax forms to fill out. But you will find it is a user friendly form.
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf
https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
an-57470
·1 year agoIt’s about the Schedule C-SE form from the IRS regarding SSDI/SSI recipients selling $600+ on eBay. I spoke to my local SSA office. I’ll be receiving a 1099-K during tax season for selling over $600, but I only have to report my earnings to them if I make $1,550 or more per month and I haven’t done that at any point in time.
mam98031
·1 year agoYes, I gave those requirements in an earlier post stating what you can make without it affecting your benefits.
However that does NOT mean you don't have to tell IRS you had that income. There are likely some exceptions for those that receive SS that I'm not aware of. I'm on SS retirement and my income is reported every year along with my husband's income as he still has an employer.
kds99
·2 years agoI can only address your question from the SSI standpoint, though I suspect my answer MAY apply to SSDI as well. If I understand your question, you simply want to know if selling on eBay could put you over the maximum cash you can have on hand at any time. And the answer is YES. As you likely know, your worldly resources (mostly cash in banks or on hand) are limited to $2000.00 at any given moment. This I thought was standard from state to state but you know what your limit is already. If you have $1500 in the bank and sell a 200 dollar item, then you would be OK UNTIL you receive your next SSI check. Upon receiving that new check you would be in violation by exceeding 2000.00 of resources. So your goal is to manage your expenses and income within the confines of the SSI rules to stay legal. It can be done. SSI remedies the excess cash position by reducing a future month's SSI check amount. At some point SSI recipients can and do lose their benefits, including Medicaid for breaking the rules.
You have agreed to follow these rules and are likely aware of this. If your check comes from an SSI-approved payee that entity is legally responsible to inform SSI of the over limit situation. If your check comes directly to you, you have agreed to notify the SSI of the overage.
What surveillance does SSI engage in to assure compliance? They have free access to your bank account for example to allow observation and withdrawal as needed!
SSI does allow recipients to work, and similar rules basically apply but I don't want to complicate this discussion further.
stainlessenginecovers
·2 years agoIf these items were 'lying around the house' and you were selling them, you would NOT BE in any 'trouble' with SSI, as the following will happen.
1.) you will get a 1099 for 'gross sales' of items on ebay (if over $600)
2.) you will then 'write off' this 'gross', in your 1040 to the IRS, with 'original cost' being the number that will make this 'gross' BELOW zero.
Then, your 'TAXABLE' will be ZERO and that is ALL THAT SSI cares about!
Talk to your 'tax guy' (even HR Block works for this) when the time comes....
tobaccocardyahoo
·2 years agoThis issue is likely to be based on whether your income will be considered by the iRS to be income.
If you are selling your personal items for less than you paid for them. you must have records and qualify for the treatment by the IRS which does not consider them income.
Consult your tax advisor to see if your Ebay sales will be considered as income or not.
This is a totally complex situation, and whatever your tax advisor tells you could be incorrect if the IRS decides differently.
There is no right answer, an IRS auditor makes a decision, and you could have to challenge that opinion.
nobody*s_perfect
·2 years agoBut SSI/SSDI might have a completely different definition of "income" than the IRS. You don't want to risk them saying that the eBay gross income counts because it puts cash in the seller's pocket, regardless of whether the items were sold at a loss.
caldreamer
·2 years agoEBAY will report all your "gross sales" to the IRS. You need to check with your government office to see if they allow you to "earn money" while collecting disability payments.
According to my CPA selling on EBAY is a business even if "personal items" your income will still be reported to IRS. Good news is, if you file income taxes "as a business" you can deduct expenses (EBAY fees, refunds, cost of goods, shipping expense, packing material, office supplies, mileage) etc. You only pay "income tax" on net amount "after all deductions.
toysaver
·2 years agoEBay doesn't need your SS# to verify your identity, they use it to report earnings to the IRS. Seems the amount you earn would eventually be deducted from your check.
Most jobs are computer centered and anyone able to sell on eBay has the needed skills to work in the real world and not rely on Government benefits.
sin-n-dex
·2 years agoI have the skills to work "in the real world", but will eventually be relying on dialysis which will inhibit my ability to hold a full time regular job. I'm not in favour of judgment being passed on people with disabilities without having the facts. Fortunately my employer has disability benefits so I will not ever rely on help from the Canadian Government.
C.
toysaver
·2 years agoI'm sorry to hear of your health issues. SSI fraud is so rampant in the US they have a toll-free number to report it.
sin-n-dex
·2 years agoWe have a problem with it in Canada too, I wasn't meaning to attack you, I just take offence easily when judgment is being passed. My insurer has rules about earning income or having "other income sources" while receiving payments, and I'm not sure how my eBay selling will affect my payments (or if payments can be postponed until I can no longer earn any income).
But I do hear you on the fraud. Someone at my work is currently on "long term leave" for mental health issues, but these mental health issues don't stop this person from having an Only Fans account and selling content to the tune of triple the disability cheque while off work. So I'm mad about it too, but I feel one has to have facts, and we don't know the OP's disability that keeps them from working but able to sell on eBay "some things from around the house".
C.
nobody*s_perfect
·2 years agoNo, that's not how it works. SSI and SSDI allow participants to earn up to a certain threshold before their monthly allotment or eligibility are affected. Rules are complex and can vary from state to state.
The sources at SSI/SSDI are much more reliable than the eBay discussion boards, unless somebody with specific experience happens to come by.
One strength of selling on eBay is that the seller can work at their own pace, putting in fewer or more hours each week as their condition allows with no advance notice, and even taking a few weeks or even months off when medically necessary. Very few employers would put up with that.
fashunu4eeuh
·1 year ago@toysaver my oh my.
The above highlighted statement is incorrect, over-simplified, and overtly judgmental.
I am speaking about SSDI (not SSI).
Social Security Disability Income is not a government handout program. To qualify for it, one must have had sustained employment, usually over many years. Employed citizens pay into the SS system by way of their taxes. It is financial protection for those who may one day find that their Activities of Daily Living have become functionally compromised.
So SSDI is an insurance policy against disease or disability, that workers may earn only after providing support for Social Security by way of taxation.
But what can be most troubling is that, instead of compassion, some show contempt to those already suffering from a grievous loss of health, and the subsequent trauma that gets inflicted upon the realization one can no longer work. In a society where what you do is who you are, that is particularly painful.
spendingcents26150
·1 year agoI could reply to this statement eloquently or tell the raw truth about disability (I am not on benefits) I am going to choose to ask politely that, as a matter of understanding, you research what it means to receive benefits.
My other answer would likely get removed. Too raw. Too much "real world".
slippinjimmy
·2 years agoThe question is somewhat complex so I won't try to answer but if you Google "working while on SSI SSDI" you will get lots of links to the Social Security Administration, the IRS etc. where you can find the details.
In most cases you can earn some income without it affecting your SSI/SSDI, there appears to be a variance from State to State as well. You need to study the specifics for your particular situation, general comments could be misleading.
Note that if you are selling personal items is many/most cases it's at a loss compared to the original prices paid so it would not generate any additional taxable income. If you are selling collectibles where the value has risen from your original cost then you would although after all expenses deducted it might be minimal.
The IRS has information about how to account for selling personal possessions.
Just don't be one of those that say they are just selling "personal stuff" and then looking at their listings and seeing they sold 15 iphones it's obvious they are not being truthful about their claim of "just personal stuff" (not suggesting that is your situation but some have tried to claim that).
kensgiftshop
·2 years agoYou would need to contact SSI and ask them.
It could affect your checks and might not?
epowerbargains
·2 years agoThis is the best answer so far. As you suggested to the OP, you should contact SSI and get the information about your specific situation from them. Under the SSI regulations, you are allowed to work and at some income level your benefits will be reduced based on income. If you earn over a certain amount your benefits could be terminated. In order to protect your benefits, I would strongly suggest that you understand completely how income is treated and how it will impact your benefits - then and only then proceed with selling on eBay if advisable.