I was wanting to know if anyone on here knows if those of us who are disabled and on disability are allowed to sell any crafts we make or sewing that we may do when we are able to in order to get through a day? I like to sew, and it takes me much longer and at my own rate, but wish I could sell some of the things I sew online if it is allowed without any penalty? Our income is so low that it could help some too.
You should check with your state law but I believe if you make less then $100 a month doing so.. you do not have to report it. But honestly, if sold online via a username, the state isn't going to know (especially if you are able to use a pre-paid card that doesn't record to you).
I think, for most states, If you've reached full retirement age (65), there is no limit to how much you can earn. In the year you reach full retirement age, you can earn about $37,680 annually, but for every $3.00 over the limit, $1.00 is withheld from your benefits until the month your reach full retirement age. If you are under full retirement age, you can earn $14,160 per year without incurring a penalty. For every $2.00 over the limit, $1.00 is withheld from benefits.
I hope that this was helpful.
Peace and Blessings
Look at opening a store on Etsy.com. Price your items to compensate for any tax liability.
I just happened across this browsing the forum & I was actually just asked this question on my blog (craft blog). There are a bunch of stipulations wether you're on disability or not-disability just means you have to do that much more research & "paperwork" . I'm still waiting on my disability hearing (it's going on 2years) but my lawyers knowing I blog, warned me that even blogging can effect my assessed "abilities". It really wasn't any skin off my nose because although I'd been an adamant crafter, seller & blogger-I just can't do it like I use to. ---I'm mentioning this for others who may find refuge in crafting or blogging but are looking into disability or are on disability.
As far as selling as mentioned above-all locations are different. Some have bigger loop holes than others. Same goes for taxes. Etsy, craftster, and the likes make selling a bit more challenging-or rather intimidating lol before building a shop, I recommend doing your homework-it could save you a lot of headache in the long run. I myself sell on my professional fb page-crafting is great because you can do it when you're up for it, but realistically you're not going to make a fortune off of it unless you put years of dedication in building a unique empire of personalized branded products. I know lots of folks who also do craft fairs, festivals, classifieds & even garage sales. All of these have potential to produce sales (great potential) but again they all have their own sets of rules. For instance: at certain fairs or shows you're not required to collect sales tax-other places you are. And it all gets really fussy when you begin selling at places like these that are out of your state. And then there's income tax. Taxable income from your profits. Some places have a 3k per year allowance (so long as you make under this amount-separately-you aren't required to claim it). Again this all varies by where you are & how you go about it. Some places require you to include profits made from things like garage sales (most places that require you to obtain a permit) and some don't. It's a really large horizon of potential, all depending on what you're wanting to do & how you want to go about doing it. Sorry if this doesn't really give you a straight answer-but hopefully it helps in directing your focus towards appropriate direction, that's right for you!