How do your earnings affect your SSI income?

[de3ik]

What is the name of your state (only U.S. law)? Michigan

Hi I posted a thread here also about my situation if it helps related to my living situation:

https://forum.freeadvice.com/landlord-tenant-issues-42/i-live-section-8-how-should-i-deal-starting-small-business-585993.html#post3117242

I want to do some affiliate marketing online. I haven't made any money yet and I know as a SSI recipient that you have to report your earnings after $85 per month. My question is since online income isn't very static how would SSI deal with this? I want to know this before I do anything. How would I have to report my earnings each month? I mean since I am online one month I might make $200 and the next $150. So how would I best approach this as dealing with reporting to SSI and if you have any advice as to how it would affect my living arrangement as I asked the question in my thread above that would really help.

Thank you,

de3ik

 

[OHRoadwarrior]

You need to consult SSI and section 8 as to how they want you to approach this.

 

[de3ik]

You need to consult SSI and section 8 as to how they want you to approach this.

Thank you for replying. My mother doesn't want me to just consult SSI and section 8 about this. She wanted me to get legal advice about this. She was concerned about how it would look to our SSI office to approach them about this matter and I hadn't even made any income yet. She really wants me to be careful because of how my situation has been with our current Section 8 housing management and my SSI situation.

Can you or anyone else offer me some information or legal advice on how this works? If I do indeed have to contact them I at least want to be well informed as how things work and know what questions to ask.

Thanks,

de3ik

 

[Onderzoek]

At the end of one month, make a report and provide evidence and make your best guess about what you will make the next month.

Is this employer going to be withholding payroll taxes? If not, then you will have to pay them yourself as a self-employed person so SSI will want an annual estimate from you.

Under $85 is supposed to be reported and it is then excluded.

 

[de3ik]

At the end of one month, make a report and provide evidence and make your best guess about what you will make the next month.

Is this employer going to be withholding payroll taxes? If not, then you will have to pay them yourself as a self-employed person so SSI will want an annual estimate from you.

Under $85 is supposed to be reported and it is then excluded.

Thanks for replying. I appreciate that information. I have never this before so how would I make a report of my earnings and provide evidence? The money I would make would be direct deposited into my bank account. Also would I have to provide a report of my earnings each and every month? Would this be done online or in person at my SSI branch?

My employer wouldn't be withholding payroll taxes because actually I would be with the Amazon affiliate program. I believe they will send out the necessary forms if your earnings exceed a certain amount.

You said SSI will want an annual estimate from me. Do you mean they will want an annual estimate of all the taxes I paid for the year? I am not clear on all the details so would I have to enter that information on an annual form provided by SSI? Please do explain more. I appreciate your help on this and if you have any links to the forms or exact information those are welcome as well.

Thanks again,

de3ik

 

[Onderzoek]

How to estimate net earnings from self-employment in the current year

https://secure.ssa.gov/apps10/poms.nsf/lnx/0500820230

You are going to work because you want to make money. According to your plan, how much do you expect to receive in gross sales/receipts in the last two months of 2012 and how much do you have to spend to make that money?

You are going to continue this endeavor in 2013. If all goes according to your plan, how much will you profit for the year 2013? I understand you don't KNOW the answer, but you are doing this because you EXPECT to make a profit. Otherwise you wouldn't do it. How much profit would you expect in 2013 if all goes according to plan? That is what you need to report.

And whatever documents you get to show what you get paid is what you need to show. There will be some kind of paper trail and/or you can keep a written ledger of your cash income and cash expenses, like any other kind of cash business. There are ways.

It will not be as easy to report as wages.

 

[de3ik]

How to estimate net earnings from self-employment in the current year

https://secure.ssa.gov/apps10/poms.nsf/lnx/0500820230

You are going to work because you want to make money. According to your plan, how much do you expect to receive in gross sales/receipts in the last two months of 2012 and how much do you have to spend to make that money?

You are going to continue this endeavor in 2013. If all goes according to your plan, how much will you profit for the year 2013? I understand you don't KNOW the answer, but you are doing this because you EXPECT to make a profit. Otherwise you wouldn't do it. How much profit would you expect in 2013 if all goes according to plan? That is what you need to report.

And whatever documents you get to show what you get paid is what you need to show. There will be some kind of paper trail and/or you can keep a written ledger of your cash income and cash expenses, like any other kind of cash business. There are ways.

It will not be as easy to report as wages.

Thank you for your reply. I haven't started yet as there is more information to be gathered and other things to attend to, but I am hoping to make $100 per month by the end of the year. Since these kinds of websites take time I wouldn't expect to make anything for the first few months and then maybe, by the 4th month on make income. I would have hoped to have made at least the $400 you need to report for your taxes on self employment income by the end of the year and hopefully $600. By the end of year two I'm hoping the site will be doing $300 a month and hope to be doing at least 5-10 sites, by the end of the year. In general I'm hoping to build up to a per site profit of $300 within 1-2 years per site.

Yes I'm doing it to profit, but because these sites take time to get traction I'm not sure how long it will take to get profitable. I'm hoping it won't take long, but I honestly don't know because this will be my first time doing it and I need to see how it goes.

As for a paper trail all I would have is my amazon information and bank information. Do you think that would be enough? Also do you think my web hosting and internet bill would be considered a business expense that I could deduct?

Thank you,

de3ik

 

[LdiJ]

Thank you for your reply. I haven't started yet as there is more information to be gathered and other things to attend to, but I am hoping to make $100 per month by the end of the year. Since these kinds of websites take time I wouldn't expect to make anything for the first few months and then maybe, by the 4th month on make income. I would have hoped to have made at least the $400 you need to report for your taxes on self employment income by the end of the year and hopefully $600. By the end of year two I'm hoping the site will be doing $300 a month and hope to be doing at least 5-10 sites, by the end of the year. In general I'm hoping to build up to a per site profit of $300 within 1-2 years per site.

Yes I'm doing it to profit, but because these sites take time to get traction I'm not sure how long it will take to get profitable. I'm hoping it won't take long, but I honestly don't know because this will be my first time doing it and I need to see how it goes.

As for a paper trail all I would have is my amazon information and bank information. Do you think that would be enough? Also do you think my web hosting and internet bill would be considered a business expense that I could deduct?

Thank you,

de3ik

Yes, web hosting and internet costs would be valid business expenses. The internet costs might have to be prorated between personal and business use.

 

[de3ik]

Yes, web hosting and internet costs would be valid business expenses. The internet costs might have to be prorated between personal and business use.

Just to be sure would my Amazon information concerning income and bank statements be enough in reporting to SSI? Or would I need further documentation?

 

[Onderzoek]

Just to be sure would my Amazon information concerning income and bank statements be enough in reporting to SSI? Or would I need further documentation?

Perhaps.

Maybe not