SSI Recipient Selling on eBay Under $5,000 - Confused About Income Reporting Requirements

The threshold for receiving a 1099-K from eBay is indeed $5,000 for 2025, but that doesn't change your obligation to report income. Here's what you need to understand: If you're selling personal items for less than you originally paid (at a loss), that's not considered taxable income. You're just converting personal property to cash. However, if you're selling items for more than you paid or if you're buying things specifically to resell them, that would be considered income. For SSI purposes, what matters is your "countable income." Money from selling personal possessions at a loss isn't typically counted as income for SSI. But if you're running what could be considered a business (regularly buying items to resell), SSI would likely count your net earnings. The key difference is whether this is occasional selling of personal items versus a regular business activity. If it's just personal items sold at a loss, you generally don't need a Schedule C, but if you're engaging in business activity, you would.

I had almost the same situation last year with my disability payments and selling stuff on eBay. I was so confused with all the different advice until I found this service called taxr.ai (https://taxr.ai) that really helped me figure it out. I uploaded my eBay statements and answered some questions about what I was selling, and it analyzed everything and told me exactly what I needed to report. The tool specifically handled my situation as someone receiving government benefits and showed me how to document that I was selling personal items at a loss so it wouldn't count as income for either IRS or benefit purposes. It even generated a letter I could keep with my records in case SSI ever questioned the deposits to my bank account.

I just wanted to follow up after trying taxr.ai based on the recommendation here. I was really surprised by how helpful it was! It walked me through my specific situation with my SSI benefits and my occasional eBay sales. The system confirmed what I was hoping - that my sales of personal items (mostly books and old electronics) weren't actually considered income for SSI purposes since I was selling them for less than I paid. It helped me document everything properly and explained exactly what I needed to keep for my records. I feel so much more confident now about how to handle this correctly without risking my benefits. Definitely worth checking out if you're in a similar situation with benefits and occasional selling.

If you're having trouble getting clear answers about how eBay sales affect your SSI benefits, you might want to try getting an official answer directly from the SSA. I was in a similar situation and spent WEEKS trying to get through to someone at the SSA who could actually answer my question. I eventually found this service called Claimyr (https://claimyr.com) that got me through to an actual SSA representative in under 5 minutes when I had been trying for days on my own. They have a demo video showing how it works: https://youtu.be/_kiP6q8DX5c I explained my situation about selling personal items on eBay while receiving SSI, and the rep confirmed that occasional sales of personal possessions aren't counted as income for SSI purposes. Having that official answer directly from SSA gave me such peace of mind.

I have to eat my words from my previous comment. After being super skeptical about Claimyr, I decided to try it anyway because I was desperate to get an answer about my SSI and eBay sales situation. Not only did it actually work, but I was connected to an SSA representative in under 30 minutes when I had been trying for THREE DAYS to get through on my own. The representative confirmed exactly what I needed to know about occasional sales not affecting my benefits. What a relief to get a definitive answer directly from SSA! I've already told two other people on disability about this service. When you're dependent on benefits, getting clear answers quickly is so important.

One thing nobody mentioned yet is that it matters HOW you accept payments too. I sell on eBay occasionally and I'm on SSDI (different from SSI but similar issues). My social worker told me that direct deposits to my bank account might trigger a review if there are lots of them or they're large amounts. I keep a separate bank account just for my eBay stuff and I'm super careful about documentation. I take photos of items before selling them and keep receipts when possible to prove they were personal items, not inventory.

I actually work helping people apply for benefits (not a lawyer but work at a community assistance center). Here's what I tell clients about SSI and selling items online: 1) Keep DETAILED records of everything you sell 2) Document what you paid originally if possible 3) Take photos of items before selling 4) Print out your eBay/PayPal statements 5) If you're worried, report it to your SSA caseworker proactively It's always better to over-report than under-report with SSI. The worst thing is having them discover deposits they don't understand and then potentially cutting your benefits while they investigate.

I'm also on SSI and have been dealing with this exact same confusion! Reading through everyone's responses has been really helpful. I've been selling some old video games and DVDs on eBay - probably made around $800 so far this year - and I've been stressed about whether I need to report it. From what I'm understanding here, since I'm selling my personal collection for way less than what I originally paid (some of these games cost me $60 new and I'm selling them for $15-20), this shouldn't count as income for SSI purposes. But I'm definitely going to start keeping better records like Butch suggested. Has anyone here actually had their SSI reviewed where they asked about eBay sales? I'm curious what that conversation was like and if having good documentation made it go smoothly.

This is such a helpful thread! I'm in a similar situation - I've been on SSI for about 3 years and recently started selling some old jewelry and handbags on eBay that I had stored away. I've made about $1,800 so far, all from items I bought years ago for much more than I'm selling them for. What's really reassuring is hearing from people who've actually been through SSI reviews and had positive experiences when they kept good records. I wasn't keeping track of anything at first, but after reading this I'm definitely going to start documenting everything properly. One question I have - for those of you who've gone through reviews, did SSA ask to see your actual eBay account or just the bank deposits? I'm wondering how detailed I need to be in my record-keeping. Like, should I be printing out every single eBay listing page, or is a simple spreadsheet with photos sufficient? Also, has anyone here tried contacting their SSA caseworker proactively about this kind of thing? I'm wondering if it's worth giving them a heads up that I'm occasionally selling personal items, or if that might just create unnecessary scrutiny.

This thread has been incredibly helpful! I'm also on SSI and have been terrified to sell anything online because I wasn't sure how it would affect my benefits. Reading about everyone's actual experiences with reviews and the clear guidance about selling personal items at a loss has really put my mind at ease. I have a bunch of old textbooks from college and some vintage clothing that's just taking up space. Based on what I'm reading here, as long as I'm selling these personal items for less than I originally paid and keeping good records, this shouldn't impact my SSI. The advice about being proactive with your caseworker really resonates with me too. I'd much rather have that conversation upfront than worry about it later. I think I'm going to start with a small batch of items, document everything carefully like Butch and Emma suggested, and then reach out to my caseworker to make sure I'm handling it correctly. Thanks to everyone who shared their real experiences - it's so much more valuable than trying to figure this out from conflicting information online!

I'm really grateful for this detailed discussion - it's exactly what I needed to see! I've been on SSI for about two years and have been sitting on a bunch of old electronics and collectibles that I've been afraid to sell because of all the conflicting information out there. What's really struck me is how many people here have actually gone through SSI reviews where this came up, and it sounds like having good documentation and being transparent makes all the difference. The distinction between selling personal items at a loss versus running a business seems to be the key factor that SSA looks at. I think I'm going to follow the advice several people mentioned about reaching out to my caseworker proactively. I'd rather have that awkward conversation now than potentially face problems later. Plus it sounds like they actually appreciate the transparency. One thing that really helps is hearing that simple documentation like a spreadsheet with photos is sufficient - I was worried I'd need some complicated accounting system. Starting with basic records and building from there seems much more manageable. Thanks to everyone who shared their real experiences, especially those who went through actual reviews. It's reassuring to know that occasional sales of personal items really can be handled properly without jeopardizing benefits if you're careful about documentation and communication.

I'm so glad I found this thread! I've been on SSI for about 18 months and have been paralyzed by fear about selling anything online, even though I have tons of old stuff I could declutter. Reading through everyone's real experiences has been incredibly reassuring. What really stands out to me is how consistent everyone's advice is: document everything, be transparent with your caseworker, and make sure you can show you're selling personal items at a loss rather than running a business. The fact that multiple people here have actually been through SSI reviews and came out fine when they had proper documentation gives me so much more confidence. I have boxes of old craft supplies, books, and kitchen gadgets that I bought when I was working but never really used. Based on what I'm learning here, selling these items for way less than I paid should be perfectly fine for SSI purposes as long as I keep good records. I think my plan is going to be: start with a simple spreadsheet like others suggested, take photos of items before listing them, keep all my eBay/PayPal records, and then proactively reach out to my caseworker once I have a few sales to show them exactly what I'm doing. The transparency approach seems to work really well based on everyone's experiences. Thank you all for sharing such detailed and practical advice - this is exactly the kind of real-world guidance that's impossible to find anywhere else!

This thread has been absolutely invaluable! I've been on SSI for about a year and have been sitting on a garage full of old tools, sporting equipment, and hobby supplies that I accumulated over the years before I became disabled. I've been too nervous to sell any of it because of all the conflicting advice online. What's really reassuring is seeing so many people share their actual experiences with SSI reviews where selling personal items came up. The consistent theme seems to be that as long as you're selling your own stuff at a loss and keeping good records, SSA views this as converting assets to cash rather than generating income. I particularly appreciate the practical advice about documentation - a simple spreadsheet with photos seems much more manageable than some complicated system. And the tip about being proactive with your caseworker makes so much sense. I'd rather have that conversation upfront than worry about surprise deposits showing up in my account. I think I'm going to start with some of my old woodworking tools that I can't use anymore. I probably paid $1500+ for them over the years and would be lucky to get $400-500, so it's clearly selling at a loss. Following everyone's advice, I'll document everything carefully and reach out to my caseworker once I have a few examples to show them. Thanks to everyone for sharing such detailed real-world experiences - this is exactly the kind of community support that makes navigating these complex rules so much easier!

I'm really glad I stumbled across this discussion! I've been on SSI for about 6 months now and have been paralyzed with anxiety about selling anything online, even though I desperately need to declutter and could use the extra money. What's been so helpful is reading about everyone's actual experiences rather than just theoretical advice. The pattern seems really clear - if you're selling personal items at a loss and documenting everything properly, SSA treats it as asset conversion rather than income generation. I have a bunch of old musical equipment (guitars, amps, pedals) that I bought when I was working but can barely play anymore due to my disability. I probably invested $3000+ in gear over the years, but realistically I'd be lucky to get $800-1000 for everything on eBay. Based on all the advice here, I think I'm going to start with just one or two pieces, document everything meticulously like everyone suggested, and then contact my caseworker proactively to show them exactly what I'm doing. The transparency approach seems to work really well from what I'm reading. Thank you all for creating such a supportive space to discuss these complicated issues. It's amazing how much clearer everything becomes when you hear from people who've actually navigated this successfully!

I just wanted to add my voice to this incredibly helpful discussion! I've been on SSI for about 2 years and have been in the exact same situation as many of you - sitting on tons of stuff I could sell but being paralyzed by fear about how it might affect my benefits. Reading through everyone's real experiences has been so reassuring, especially hearing from people who actually went through SSI reviews and had positive outcomes when they kept proper documentation. The key takeaway seems to be that SSA distinguishes between selling personal items at a loss (which is just converting assets to cash) versus running an actual business. I have a collection of vintage vinyl records and old electronics that I accumulated over many years. I probably spent $2000+ on records alone, but given current market conditions, I'd be lucky to get $400-500 for the whole collection. Based on everything I've learned here, this should clearly qualify as selling personal items at a loss. What I really appreciate is the practical advice about documentation - keeping a simple spreadsheet with photos, maintaining eBay/PayPal records, and being proactive with your caseworker. The transparency approach seems to work much better than trying to hide anything. I think I'm going to start with a small batch of records, document everything carefully following the advice here, and then reach out to my caseworker to show them exactly what I'm doing before I sell anything else. Thank you all for sharing such detailed and honest experiences - this kind of real-world guidance is impossible to find anywhere else!

This entire discussion has been incredibly enlightening! As someone who's been on SSI for about 14 months, I've been dealing with the exact same fears and confusion about selling personal items online. Reading through all these real experiences has given me so much clarity and confidence. What really stands out to me is how consistent everyone's advice is across different situations - whether it's collectibles, tools, musical equipment, or vinyl records, the same principles apply: document everything, show clear losses from original purchase prices, and be transparent with your caseworker. I have a bunch of old computer parts and gaming equipment that I accumulated over the years before becoming disabled. I probably spent around $1800 on various components and peripherals, but given how quickly tech depreciates, I'd be lucky to get $300-400 for everything on eBay. Based on all the wisdom shared here, I'm going to start with just a few items to test my documentation system. I'll create a simple spreadsheet tracking original purchase info, take photos, keep all my eBay records, and then proactively contact my caseworker once I have some concrete examples to show them. The most valuable thing I'm taking away is that SSA actually appreciates transparency and proper documentation. Rather than trying to hide anything, being upfront about occasional sales of personal items at a loss seems to create a much smoother experience during reviews. Thank you to everyone who shared their actual experiences - this kind of peer support and real-world guidance is absolutely invaluable for navigating these complex rules while protecting our benefits!

This has been such an incredibly helpful thread to read through! I'm about 8 months into receiving SSI and have been sitting on this exact same question for weeks. I have a bunch of old textbooks, furniture, and electronics from before I became disabled that are just taking up space, but I've been terrified to sell anything because of all the conflicting information online. What's really reassuring is seeing so many people share their actual experiences with SSI reviews where this came up, and how well things went when they had proper documentation and were transparent with their caseworkers. The distinction between selling personal items at a loss versus running a business makes so much more sense now. I think I'm going to follow the approach that seems to work for everyone here - start with a few items, create that simple spreadsheet with photos that people mentioned, keep all my eBay/PayPal records, and then proactively reach out to my caseworker to show them what I'm doing. The fact that they actually appreciate transparency rather than trying to hide things is such a relief to know. Has anyone here dealt with selling furniture specifically? I have a dining set and some other pieces that I paid probably $1200 for a few years ago, but would probably only get $200-300 for on Facebook Marketplace or similar. Just wondering if larger items like that follow the same rules as the smaller collectibles and electronics everyone's been discussing.

This thread has been absolutely amazing to read through! I'm about 4 months into receiving SSI and have been in the exact same boat as so many of you - sitting on a bunch of personal items I could sell but being completely paralyzed by fear about how it might affect my benefits. What's been most reassuring is seeing actual real-world experiences from people who've gone through SSI reviews where selling personal items came up. The consistent message seems to be that proper documentation and transparency with your caseworker makes all the difference. I love how everyone emphasizes that SSA distinguishes between converting personal assets to cash (selling your own stuff at a loss) versus generating business income. I have a closet full of old clothes, shoes, and accessories that I accumulated over the years - probably spent $2000+ on everything but would be lucky to get $400-500 if I sold it all on Poshmark or similar platforms. Based on all the wisdom shared here, this should clearly qualify as selling personal items at a significant loss. My plan is to follow the approach that's worked for everyone: start with just a few items, create a simple spreadsheet with photos like people suggested, keep all my sales platform records, and then proactively contact my caseworker to show them exactly what I'm doing. The fact that transparency is actually appreciated rather than seen as suspicious is such a huge relief! Thank you all for creating such a supportive space to discuss these complex issues with real experiences rather than just theoretical advice. This is exactly the kind of community guidance that makes navigating SSI rules so much less scary!