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? 

[fashunu4eeuh]

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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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@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.

[mam98031]

@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%20....

 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,whi....

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

[spendingcents26150]

I 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".

[az93]

No 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.

[gooseislandcollectibles]

The 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]

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@gooseislandcollectibles wrote:

The 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.

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So 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%20....

[mementomoria]

Are 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]

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@mementomoria wrote:

Are 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. 

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What??  Why??  Oh no!!  Not good to explain to someone how to cheat / defraud the government.  Those are federal crimes.

[liawri-75]

If 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.

[jerseyboymusic]

@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]

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@liawri-75 wrote:

If 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.

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@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.

[mam98031]

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@jerseyboymusic wrote:

@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

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I'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.

[Anonymous]

Update:

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]

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@Anonymous wrote:

Update:

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.

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@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

[Anonymous]

It’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.