Can you be self-employed and collect Social Security Disability? This is a common question among individuals who are considering starting their own business while also relying on disability benefits. The answer is both complex and multifaceted, as it involves understanding the intricacies of Social Security rules and regulations. In this article, we will explore the possibilities and limitations of being self-employed while receiving Social Security Disability benefits.
The Social Security Administration (SSA) provides disability benefits to individuals who are unable to work due to a medical condition that is expected to last at least one year or result in death. To qualify for these benefits, applicants must meet certain criteria, including having sufficient work credits and demonstrating a disability that meets the SSA’s definition.
For those who are self-employed, the situation becomes a bit more challenging. The SSA defines self-employment as any business, profession, or occupation in which an individual is engaged in producing goods or services. While self-employment can be a fulfilling and rewarding career path, it also has implications for your eligibility for Social Security Disability benefits.
One of the key factors to consider is the amount of income you earn from your self-employment. The SSA uses a formula to calculate your monthly disability benefit amount, and any income you earn from self-employment can affect your eligibility. According to the SSA, you must earn less than $1,180 per month in 2021 to be considered disabled and eligible for benefits.
However, the SSA recognizes that self-employment can be unpredictable, especially in the early stages of starting a business. As a result, they have established a nine-month trial work period, during which you can earn a certain amount of income without affecting your eligibility for benefits. During this trial period, you can earn up to $9,210 in 2021 without any penalties to your benefits.
After the trial work period, the SSA will assess your earnings on a month-by-month basis. If your income exceeds the substantial gainful activity (SGA) limit, which is currently set at $1,910 per month in 2021, you may be deemed no longer disabled and your benefits may be suspended or terminated.
It’s important to note that the SSA takes into account all sources of income, not just self-employment income. This includes any wages from employment, investment income, rental income, and other forms of earnings. As such, it is crucial to accurately report all income sources to the SSA to avoid any potential overpayments or benefit terminations.
While it is possible to be self-employed and collect Social Security Disability benefits, it is essential to plan carefully and stay informed about the rules and regulations. Consulting with a financial advisor or a Social Security attorney can provide valuable guidance and help you navigate the complexities of this situation.
In conclusion, the answer to the question “Can you be self-employed and collect Social Security Disability?” is yes, but with certain limitations and conditions. By understanding the rules and planning accordingly, individuals can balance their desire to start a business with the need to maintain their disability benefits.
