Mystery Shopping While Collecting Social Security Benefits

by Sheila D
(Orlando, FL)

I have a medical condition that keeps me from working a normal job. At times, I cannot function, other times, I function normally. I am collecting Social Security, and I am allowed to work, as long as the amount does not exceed $600 per month. If I earn more than that, I can loose my benefits. I can't risk losing this income, as I depend on it to survive.

I am also very concerned about putting my S.S # on secret shopper applications.

Also, if they pay me via PayPal, will PayPal report the payments to the IRS?


Faith's Answer

Hi Sheila,

What the Mystery shopping companies will do is send you a 1099 each year documenting the amount of money they paid you. The don't deduct any taxes or expenses from this figure as you are working for them as an independent contractor.

You will need to deduct all your expenses: reimbursement, mileage, etc., from the amount they paid you. The resulting figure is the amount of profit you made during the year.

This is what you report to the IRS.

If you keep meticulous mileage and expense records
you shouldn't have any problem keeping track of your income throughout the year or with the IRS at tax time.

When you get close to $600 in a calendar month, simply stop accepting shops until the following month.

As to your concerns about giving the secret shopper companies your social security number: I don't think you need to worry about this at all. Just check to make sure the web page that you are typing the number in on is secure.

I've been giving my SSN to various online companies for years and I've never had a single problem.

As far as PayPal is concerned, I don't know for sure whether they report the amount of money in your account to the IRS.

If you keep good records and report your mystery shopping profits accurately, it won't matter what anyone else reports to the IRS.

This is the only safe way to go. You can't risk losing your disability benefits, they're too important.

Hope this helps.