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65+ Warriors -- Social Security Vs. Internet Income

by bjgran
9 replies
Hi, Warriors:
I have a question about making income by Internet Marketing and the income I receive from Social Security.
Now, that I'm beginning to make a little money from Internet Marketing, I thought, "Oh NO," now, what do I do if I go over the amount that I can make on my own and they take the Social Security income away from me (or drastically cut it)?
Nothing, illegal, of course, but is there a way to "shelter" income -- maybe by incorporating? Or -- I'm thinking that Internet Marketing, itself, might provide a way.
I know many of you may have faced similar predicaments and I just want to get your opinion(s) or ideas about it.
Thanks again -- very much!
Beverly
#income #internet #security #social #warriors
  • Profile picture of the author Istvan Horvath
    Internet Marketing in itself doesn't provide a way. The income you make online is like any other income. There is no difference.

    And as the owner of this fine forum posted once: don't ask legal questions in a public forum
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    • Profile picture of the author alcymart
      Originally Posted by Istvan Horvath View Post

      Internet Marketing in itself doesn't provide a way. The income you make online is like any other income. There is no difference.

      And as the owner of this fine forum posted once: don't ask legal questions in a public forum

      I agree with Istvan, this is not the place to ask legal questions.

      Take care,
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  • Profile picture of the author webdesk
    The SS site should have a booklet you can request.

    I have "What you need to know when you get retirement or survivors benefits" from them. Until you reach normal retirement age (and drawing benefits), there is a trade-off of $1 against $2 earned, once you are at full normal retirement age, I believe that is lifted... with an odd $1 against $3 dollar clause for being in the year, but not having reached your birth month... or something to that effect -- but, it is all in the booklet!

    What gets me though is this:
    "If you are self-employed, the monthly limit is based on whether you perform substantial services in your business. In general, if you work more than 45 hours a month in self-employment, you will not be able to get benefits for that month". That is from pg 16 under the subject "A special monthly rule" and it goes on to reference publication 05-10038 'When you retire from your own business: What you need to know".

    Get both, read up on it, and seek some good, professional advice. I know I'm looking into it because there are also things about when it is earned vs when it is received and how it affects benefits... it has me confused!

    But, as we all know, IMers only work 1-hour per day from home, so that's only 22-30 hours per month depending on M-F or 7 days per week!
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    Aden
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  • Profile picture of the author WD Mino
    Well I won't run you into the ground for asking Bev. I will say this. You could easily start making more than your SS check provides so it is possible IM could replace your SS.

    Having said that I don't advise trying to skirt the system it will bite you in the but in a bad way.

    Glad you are making some money but use some wisdom don't try and duck the law you could lose more than your check
    -Will
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    "As a man thinks in his heart so is he-Proverbs 23:7"

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  • Profile picture of the author Steve Peters Benn
    I don't think it is worth trying to fiddle the system for a small amount. I mean, really, incorporating to avoid it?

    What you can do is replace your Social Security income...
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  • Profile picture of the author TiffanyLambert
    I'm glad you asked this here, Mom. I think you should do what webdesk advised and then talk to a CPA too.

    This is one question I didn't have the answer to. There's this "maximum amount" you're allowed to earn in addition to what SS pays.

    What I didn't know how to answer was the question about let's say you're making $13,000 a year now - it cuts off SS but it's not yet enough to survive on. So I was wondering too if she could maybe incorporate and leave the earnings in the business account until they accumulated enough to sustain her without SS?

    I know this isn't a legal advice forum though Just a great place for people in the same boat to generate ideas so she can then take them to a CPA and inquire about.

    Thanks, Warriors! I'm glad she has more advice than just mine. LOL
    tiff
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  • Profile picture of the author iw433
    If you have a business. Run it like a business. Register your business with the state you are in. Get a business bank account. And do all the things you do to get your business write offs and tax breaks. Get good advice from a good CPA
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    • Profile picture of the author TedMarlett
      Hi Beverly,

      Great Question. I will give you an answer that works for me--don't know if it will work for you.

      I am not a lawyer, don't work for the SS or IRS. Just a person who tries to make money on the Internet.

      I do work part time at a regular job along with trying to build an income on the internet. I also receive monthly social security.

      What I do know it that any income that is reportable, such as on the internet if you make over a certain amount, will affect your social security because it is reportable and taxable to the IRS. You might lose some social security payments but the money, if you make enough, will override whatever you will get from the social security. The only real problem that I see is if I make a certain amount of money and use it as immediate income and then stop working on that system, I will still have to pay taxes on it and if I make enough, social security is going to reduce the amount I am able to collect the next year.

      It's not a real good situation unless you are able to make enough to actually lose the social security and live much, much better with the new income and not miss social security.

      I do work with some folks who draw social security and continue to work full time. They just take the loss of their SS payments, yet actually come out ahead at the end of the year.

      I agree that the Social Security website should tell you what you want to know.

      I wish it was like it was quite a few years ago when a person could draw his/her social security and continue working without any penalties. I mean, we did pay into it all these years, didn't we?

      Anyway, these are my thoughts. Hope they help. If someone finds out different I'm interested in other alternatives also.

      Thanks
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      • Profile picture of the author AprilCT
        Bev, I do have a suggestion for you. I think the rules are that you can't work more than 45 hours in self employment for the month. If you can work within that time frame for earnings for yourself and for future use, could you put up well seo'd sites and let someone else in your family use them for Adsense or advertising? After you reached age 66, you could put up your own advertising and you would have more mature sites better likely to earn regularly.

        I think the limit for earnings of SS recipients for 2011 is $14,160. However, for self-employment, your earnings would be net. How that is figured, or what is allowed, I have no idea.

        Please do check with SS and a CPA and do not just take my word for it. I am not an expert and can't guarantee my thoughts here as accurate or acceptable.
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