Stroudsburg, PA asked in Employment Law, Social Security and Public Benefits for Pennsylvania

Q: I'm on disability and recieve SSDI. If I get a part-time job, I must report my income.

If I start a business and my earnings haven't surpassed my expenses making me no profit as well as me not paying myself a salary, do I have to report my earnings to SSDI?

1 Lawyer Answer
James L. Arrasmith
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  • Social Security Disability Lawyer
  • Sacramento, CA

A: If you're receiving SSDI (Social Security Disability Insurance) and start a business, it's essential to understand how your business activities might affect your benefits. The Social Security Administration (SSA) requires you to report any work activity, which includes starting a business, regardless of whether you're making a profit or drawing a salary.

The SSA considers various factors to determine if your work activity is substantial enough to affect your benefits. This includes not only your earnings but also the amount of time and effort you put into the business. Even if your business isn't currently profitable, your involvement in it could still be seen as substantial gainful activity (SGA), which can impact your eligibility for SSDI benefits.

It's advisable to report the start of your business to the SSA as soon as possible. This will help you avoid any complications or misunderstandings about your benefits and work activity. Transparency with the SSA is key to maintaining your benefits and complying with the rules of the SSDI program.

If you're unsure about how to report your business or how it might affect your SSDI benefits, consider consulting with an attorney experienced in disability law. They can provide guidance specific to your situation and help you navigate the reporting process. Remember, staying informed and compliant with SSA regulations is crucial when receiving disability benefits.

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