SSDI- How do they categorize types of extra income? CALIFORNIA
BACKGROUND:
Currently receiving SSDI benefits. Two degenerative neuro conditions. Return to any work unrealistic. Also, can’t afford stress of dealing with re-evaluation that might be triggered from any kind of earned income – even income within the allowed range. Have not found a complete answer anywhere on Internet for these questions:
QUESTIONS:
1) Using Stocks or Forex as an example, what factors cause SSDI to label an activity as Trading rather than Investing or Trading?
Number of trades?
Length of time held?
Some other factor?)
2) Is the IRS definition of a Trader used, or some lesser standard? (Have heard it is hard to attain the Trader status per IRS, but can not locate)
3) If $ are given to a broker to trade, does that keep it in the Investment category?
4) If I give another person ideas for a product or maybe a book… They complete final product and market… Is there a way to structure a royalty or some other contingency payment that fits into the SSDI rules and does not become earned income?
Thank you for your help

