Slashing prices in my book store and getting out

[fishzlot]

I've slashed prices in my book store to ridiculously low prices.  Because I can't be selling on Ebay much longer.  Because if I do, I will be penalized by the government.  I've had some serious spinal problems in the past and the state pays my Part B and Part C under disability.  Unfortunately, they are holding against me any income I generate on Ebay and a low threshhold is set upon this to suspend my coverage.  Meaning I would not only need to assume monthly charges.  But would also be liable for a list of other medical bills if I required further surgery or in-hospital treatment.  Typically one-third of surgery and other types of treatment.  I'm not even sure what-all they would hit me with.  Some of it is a mystery until it would actually happen.  It is ultra-complicated and if you talk to 10 different people at the Social Security Administration?  You'll get 10 different stories and 10 different sets of "facts."  At the SSA their own employees always have a different explanation.  I can't get a straight story from any of them.  Always different, always inconsistent.  I don't trust the information I've gotten from any of them.  And they keep changing the rules at both the state and federal levels.  They can't leave well enough alone.  Some say it is "gainful employment."  Others say not.  They can't make up their minds.  A different story from every employee I talk to on the phone.

The government further complicated this, as many Ebayers will know, by making sure that it is now impossible to hide this extra income from the prying eyes of the government.  By kicking out a tax form if I make over $600 in a year on Ebay.  Congress quietly lowered the threshhold for reporting last year from the original $20K.  How did they get away with this without anyone noticing?  Where were the advocacy groups?

But at least the Emergency Health Act is protecting me for the time being from having medical benefits suspended for any reason.  This has been renewed every 90 days and is up for renewal again January 15.  Will they renew it again with Republicans in charge of the House of the Representatives and Democrats in charge of the Senate?  Who knows.  Republicans generally want to cut everything for everybody and stick it to people of lower income.  We don't know what will happen.  But I cannot risk being liable for hospital bills.  If I lose my Part B and Part C I could be asked to pick up one-third of cost for surgery and hospitalization.  It is a great danger.  And this danger is going to drive me right off Ebay.  I don't get regular Social Security for another two years and I don't know yet how that will affect this.  But the writing is on the wall.  The government is going to force me to close my Ebay store.  The risks are too great.  And I will now lose the meager extra income that I have received on Ebay for quite a few years.  This is awful but I have no other options.  The government has sealed off any options with their rules.  They don't want me making extra income on Ebay.  They will penalize me for doing it.

So I am trying to clear off as much inventory as possible at cheap prices.    I need to generate as much  money as I can.  And move out as many books as I can.  I have a lot of inventory and I'm selling it as cheaply as possible.  As I deal with this catastrophe the government has laid at my feet.  They took my EBay income away from me.  What a disaster.   I need to sell, sell, sell.  And then hide the money from the government under my mattress.  This spinal disease has already withered one of my hands.  And now the other hand is starting to atrophy as well.  I'm losing my grip on my one remaining good hand.  But the government is going to hammer me for making a little money on Ebay.   There is just no winning with this issue.

[stainlessenginecovers]

Sounds like you are in SSDI so you also get a 'check' from them? You are allowed to 'earn' up to $1350 a month without penalty (per AARP website) but it is easy for you to call Social Security to verify.

With what you 'sell', you can deduct shipping, Fees and Original Cost of Goods to show a 'net'. That 'net' is what will be counted towards that $1350 a month. 

Know that that amount is 'taxable' for Fed and State (most) as well as 15.3% of 'net profit' is to be paid with Fed Tax as Self Employment Tax (Social Security/Medicare).

[pburn]

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@fishzlot wrote:

The government further complicated this, as many Ebayers will know, by making sure that it is now impossible to hide this extra income from the prying eyes of the government.  

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Oh, my.

Sorry about your medical challenges, but  your post would lead one to believe you've been cheating on the program and on your taxes for awhile now. That's certainly not the case, is it?

Good luck with your health issues and whatever direction you choose to go with your eBay business.

[maxine*j]

I am sorry for your physical ailments. They sound pretty rough.  Every persn who regularly posts here faces similar, or worse, so there's abundant empathy to go with the sympathy. 

But I can't sympathize with your 20 years of tax evasion as a seller here, which gave you an unfair advantage over those of us sellers who always played it straight.

Nor can I sympathize with someone who depends upon tax revenues for medical and other subsidies, who is willing to falsify income in order to obtain those benfits, and who then rails at the government for trying to monitor incomes and collect the very taxes that help him and others.  I assume you have dodged your PA Income Tax obligation for 20 years, as well.

I will do you a favor and not buy from you, since it will be reported on the 1099K you're about to receive and on which you may owe taxes.   And, anyhow, if I helped you with your stated plan to hide your money from the government someone might file a 3949A on me, as well.

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[onefootflipper]

No sympathy here.

They cut my leg off 3 years ago and I could no longer do anything I had job experience with and I opted to sell on ebay instead of applying for disability. I am doing fine even though I do almost everything from a wheelchair or hopping on one leg.

Also, with you level of sales you are honestly in no danger of going over the income levels allowed. 

[nobody*s_perfect]

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@fishzlot wrote: ... is now impossible to hide this extra income from the prying eyes of the government.  By kicking out a tax form if I make over $600 in a year on Ebay.  Congress quietly lowered the threshhold for reporting last year from the original $20K.  How did they get away with this without anyone noticing?  Where were the advocacy groups? ... 

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Are you joking? There have been at least a thousand discussion threads about this over the past 2 years, and eBay has their own private hired lobbyists.

Scrolling through your Sold items, it looks like you have sold over $600 of items just in the past 90 days, so you (and the IRS) are going to get a 1099-K for 2022.

[onefootflipper]

Also, since I am not a complete monster.

Most casual sellers with a couple thousand in sales can likely get their profit down to zero or close to it on schedule C. Since you already admitted to being quite willing to cheat the system I am sure you can get that number down to zero.

[krazzykats]

By the time you figure out your "net" income after deductions, the 15.3% self-employment tax isn't such a big deal.  If you make $15k gross and net $6000, you will be under the SSI threshold and only owe x 15.3% of the net.

If that's too much, then that's too much.

[onefootflipper]

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@krazzykats wrote:

By the time you figure out your "net" income after deductions, the 15.3% self-employment tax isn't such a big deal.  If you make $15k gross and net $6000, you will be under the SSI threshold and only owe x 15.3% of the net.

If that's too much, then that's too much.

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The original poster is looking at a total that is probably more like $3000. Which will quickly approach zero once all the expenses start getting accounted for. There are so many things a seller can claim beyond purchase price, shipping and ebay expenses, there is partial cell phone and internet service, lots of driving miles, the absolute loss on every old personal item sold, etc. 

[coolections]

You have to do what you have to do. Since you already said you slashed your prices, I recommend giving it 30 days then lower them 50% more if you truly want out.

[kensgiftshop]

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@fishzlot wrote:

 I need to sell, sell, sell. 

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Then you need to report, report, report your income like the rest of us.

I'm on disability and report my online income, like we are supposed to do.

It's better to report it now, then to have them find out later and have to repay all of that back.

[gemarakop_trading]

It is not cheating if it is legal. Only  a fool pays more taxes than they are required to by law.

[uswapl]

Fishzlot Books and Collectibles 

15K Items sold

"But the government is going to hammer me for making a little money on Ebay. "

They are going to hammer you because you hid it from them and took benefits without disclosing that you were making money.

I'm sorry about your health.  Everyone deserves good health care regardless of wealth or full time employment.  

Seek out help to get the taxes straightened out.  Start at your local community level and look for free legal aid or tax advisors.  Many community organizations offer this.

[krazzykats]

$3000 net = approx. $456 in self-employment taxes for example.  Not really a big deal, if you put that 15.3% from each sale in a savings account for a year you will have enough to pay for it come tax time with a bit left over.

[onefootflipper]

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@gemarakop_trading wrote:

It is not cheating if it is legal. Only  a fool pays more taxes than they are required to by law.

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Some of them can feel that way though.  I remember hearing one seller on Youtube that had some sort of 50 MPG hybrid car explaining that she basically made money just driving around looking for sales, deducting the standard IRS mileage rate when her real world driving cost was less than 10 cents a mile. I am looking to replace my minivan with a Maverick Hybrid for that exact reason.