Can I Start a Business While Receiving SSDI?

 Posted on November 25, 2024 in Social Security Disability

Social Security Disability Insurance (SSDI) benefits are a lifeline to Americans with disabilities who fall below a certain income level. However, the Social Security Administration (SSA) has strict guidelines about who can qualify for SSDI. These criteria include limits on income and work, making people who perform certain duties or earn enough income ineligible to receive SSDI benefits. A question often asked is if an SSDI recipient can start a business — or even go back to work at all — and continue enjoying benefits. The answer is yes, subject to certain conditions. To learn more, contact a Texas SSDI attorney for personalized legal advice.

What Are the Work Guidelines for SSDI?

The SSA only offers SSDI to people with disabilities who bring in a certain amount of income, referred to as substantial gainful activity (SGA). For 2024, someone whose SGA is over $1,470 per month — or $2,460 if he or she is blind — is not eligible for SSDI.

If someone is self-employed, the SSA will not assess their eligibility based on income alone. This is because business income can be due to a variety of factors. Profit-sharing agreements, for example, can contribute to a business’s revenue even if the owner is not actively working. Instead, the SSA will consider the following factors if you are self-employed:

• Hours worked: If you work a certain amount of hours, in some cases over 45 in a month, you may be ineligible for SSDI benefits.

• Income amount: The SSA will evaluate your income and deduct a reasonable amount of business expenses, household expenses, and disability-related costs. The monthly average of the resulting net income amount may determine your eligibility.

• Activity level: The SSA will consider how many hours you work, your duties, your energy output, and other factors and see if they match those of abled people in your line of work. If you are performing similar duties with a similar amount of activity to people without your disability, it can affect your eligibility for SSDI.

• Work value: If the work you do is valued above the SGA limit, or if you would be paid above the SGA limit if you did the same work for an employer, you may not be eligible for SSDI benefits.

Can I Go Back to Work While Receiving SSDI?

If you stopped work due to your disability and want to return to work, including to start a business, the SSA offers a trial work period of nine months. During this period, you can earn as much as you want without losing SSDI benefits, and only months in which you earn $1,110 before taxes are counted among the nine. These months can be rolling over a five-year period.

After the nine-month trial, you enter a three-year extended period of eligibility (EPE). During these 36 months, your SSDI eligibility is capped at $1,550 per month or $2,590 per month if you are blind. You will still receive SSDI benefits, but any month in which you exceed the cap you will not receive payments.

Contact a Collin County, TX SSDI Attorney

Receiving SSDI benefits can be a complicated process. At the The Law Offices of Coats & Todd, we will guide you through it and help you understand what you may be eligible for. Let us hold your hand through each step and help you obtain the most benefits possible. Call 972-671-9922 now to get a free consultation with a Plano, TX SSD lawyer today.