Seller concerns

[shamo-7286]

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? 

[kensgiftshop]

You would need to contact SSI and ask them.

It could affect your checks and might not?

[slippinjimmy]

The 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).

[toysaver]

EBay 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]

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@toysaver wrote:

EBay 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.  

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I 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.

[nobody*s_perfect]

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@toysaver wrote:

EBay 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. ...  

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No, 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.

[caldreamer]

EBAY 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]

I'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.

[tobaccocardyahoo]

This 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]

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@tobaccocardyahoo wrote:

This issue is likely to be based on whether your income will be considered by the iRS to be income...

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But 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.  

[epowerbargains]

This 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. 

[stainlessenginecovers]

If 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....

[sin-n-dex]

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@toysaver wrote:

I'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.

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We 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.

[kds99]

I 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.

[Anonymous]

It 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.