Disability and taxes...

[damyank913]

I have been on SSD for about 7 years now and I do pay taxes on what I get. I know that I can earn up to $600.00 undeclared per month.

Recently, I realized that I had an old Roth IRA that I had forgotten about-not much in it and it's performance has been dreadful.

These are my questions:

If I begin to direct the investment and can actually make money does the $600 thresh-hold for reporting still apply?

Since it is a Roth IRA; will there be a tax bill for making money on investing if no money is drawn out?

[GreenPartyVoter]

1. You need to speak to a tax lawyer or accountant to be sure you get the right info on that. Also,

could having an undeclared Roth IRA get you in trouble for being on SSI? If I was in your situation, that would be the first thing I would look into.

[damyank913]

3. I did declare it at the time...

but it was almost 2 years prior to my actually getting SSD. It was monetarily insignificant.
Thanks a lot for your input.

[GreenPartyVoter]

4. Glad you declared it way back when. When you said it was forgotten, I thought maybe that

meant the gov't didn't know about it, which worried me a bit.

Good luck, and I hope you can make this all work to your benefit! :hi:

[Traveling_Home]

2. stuff...

SGA basics
http://www.ehow.com/about_6612865_social-security-disability-benefits-working.html
Active Work
SGA is a substantial gainful activity, and this means being actively involved in doing work. Someone with an investment portfolio receiving money from dividends may not be engaged in work. Another person, however, actively buying and selling stocks to earn regular income could be considered doing active work.

[damyank913]

5. Good article. Thanks. Seems to be a judgment call on the auditor's part.

Wish I could afford a tax lawyer.

[mysuzuki2]

6. If you are on social security disability, and not ssi

your non-earned income does not count. It does not have to be reported to SSA. It may affect your tax liability however.

[damyank913]

7. Ok, please forgive my ignorance ...

By non-earned income , do you mean interest, dividends and the like?

[mysuzuki2]

8. yes, exactly.

[just55650]

9. delete