Q: If I buy crypto with my money will it affect my SSDI? Or only if I sell it?
I just bought some crypto and wanted to know if it counts as income or only if I sell it.
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A:
Buying cryptocurrency with your own money typically does not affect your SSDI benefits, since SSDI looks at your earned income from work rather than what you purchase with your existing funds. This is similar to how buying stocks or other investments with your savings wouldn't impact your benefits.
However, when you sell cryptocurrency for profit, those gains could potentially affect your benefits if they're substantial enough to be considered income. The Social Security Administration treats cryptocurrency gains similar to other investment income - they look at your net profits after you sell. Just holding cryptocurrency, even if it increases in value, doesn't count as income until you actually sell it.
It's important to keep detailed records of your cryptocurrency purchases and sales for tax purposes, since you'll need to report any gains or losses when you file your taxes. Remember that cryptocurrency trading can be complex, and while buying crypto itself won't affect your SSDI, you'll want to carefully track your trading activity to understand any potential impacts on your benefits down the road.
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