Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Can I contribute money into an IRA while on disability if I sell some things on Ebay?

3 Answers

Relevance
  • Anonymous
    5 years ago

    If you aren't declaring any earned income from a job or self-employment, then NO.

    If you are selling "some things" on eBAy for the purpose of business and not reporting the income, then you're committing tax evasion which is a crime.

    If you have self-employment income that you pay tax on then you can contribute to an IRA.

    There are a few ways you can contribute to an IRA without earned income, but they are more obscure such as exercising stock options or receiving alimony or a scholarship.

  • 5 years ago

    To contribute to any IRA, you must have earned income which is income from wages or self-employment. Your IRA contribution is limited to the lower of your net earned income or $5500.

    Selling on Ebay could be considered self-employment if you are selling items on a regular basis with the intent of making a profit. However, you will also have to pay self-employment tax on your net profits.

    For example: If you have a net profit of $2000 by selling on Ebay, you could contribute up to $2000 to an IRA. You wouldn't owe any income taxes but you would owe about $283 in self-employment taxes. If you are over 24 and not a dependent of someone else, you may qualify for small earned income tax credit.

  • Judy
    Lv 7
    5 years ago

    If you're doing it as a business and making a profit, yes. Not if you're just selling some of your old stuff.

Still have questions? Get your answers by asking now.