America is no longer the industrial society it was 50 years ago, which allowed baby boomers to get good factory jobs and retire in 40 years; many jobs are now overseas and America is now a service society — you have to be in the business of providing a service that is in demand if you want to make it. The wealthiest people in the world have many streams of income … that’s why they stay wealthy!
But in addition to having streams of income to leverage when times get tough, having a home-based business enables you to “Get Your Money Back.” Why? Well, there are two tax systems in America: one for individuals and one for businesses. Individuals get seven or eight regular tax deductions (like charitable contributions, certain medical expenses, and mortgage interest). Businesses (including your home-based business), on the other hand, get over 400 tax deductions.
Consider this example: If an individual makes $50,000, she gets taxed right off the top (you know, FICA and them take their share!), she only receives about $35,000 total in her paychecks, and then she has to spend whatever is left on essentials like rent and groceries as well as communication, entertainment, travel, etc. On the other hand, if an individual who has a business makes $50,000, first she gets to “expense” business related meals, entertainment, travel, gas, mileage and then she only gets taxed on whatever is left AFTER those expenses! Get it? So, because I have a home-based business, I write off virtually everything that’s related to business: gas, cell phone, ALL TRAVEL INCLUDING VACATIONS, dining out, etc. — things that we all spend our money on anyway. For me, everything is business. When I go out to eat with my friends — it’s business. When my family went Disney World, guess what, my primary purpose was BUSINESS (email a potential business partner in advance and schedule time to discuss business) — the IRS has no problem with me going to see Mickey Mouse in the process. I wrote off travel, hotel, and all meals AND had a good time doing business … with family!
I receive SSI. Can I leagally have a home based business and still keep my SSI?
Can I legally have a home based business even though I receive SSI?
Yes. You must decide how this impacts your income. I would rather live my dream and build multiple streams of income over not doing anything to keep an SSI check. It’s up to you to decide.