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Can I contribute money into an IRA while on disability if I sell some things on Ebay?
3 Answers
- Anonymous5 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.
- Wayne ZLv 75 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.
- JudyLv 75 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.