Understanding the rules and regulations surrounding Social Security Disability Insurance (SSDI) can be complex, especially when it comes to owning a business. Many individuals who receive SSDI benefits wonder if they can start or run a business without jeopardizing their benefits. This article aims to provide clarity on this topic.
Can I own a business while collecting Social Security disability benefits? Yes, you can own a business while collecting Social Security disability benefits, but there are specific rules and limitations that you must follow to avoid losing your benefits. The Social Security Administration (SSA) allows you to engage in substantial gainful activity (SGA) up to a certain limit. For 2023, the SGA limit is $1,470 per month for non-blind individuals and $2,460 per month for blind individuals.
Understanding Substantial Gainful Activity (SGA)
The concept of Substantial Gainful Activity (SGA) is crucial in determining whether you can own a business while receiving SSDI benefits. SGA refers to the level of work activity and earnings that the SSA considers to be substantial. If your earnings exceed the SGA limit, you may no longer be considered disabled under SSA rules, and your benefits could be discontinued. However, if your earnings are below the SGA limit, you can continue to receive SSDI benefits while running your business.
Trial Work Period (TWP)
The SSA offers a Trial Work Period (TWP) that allows you to test your ability to work without immediately losing your benefits. During the TWP, you can work and earn any amount without affecting your SSDI benefits for up to nine months within a 60-month period. After the TWP, you enter the Extended Period of Eligibility (EPE), during which you can still receive benefits for any month your earnings do not exceed the SGA limit.
It is essential to keep detailed records of your work activity and earnings to provide accurate information to the SSA. Failure to report changes in your work activity or earnings can result in overpayments, which you will be required to repay. Additionally, the SSA may periodically review your case to determine if you continue to meet the medical criteria for disability.
Owning a business while collecting SSDI benefits is possible, but it requires careful planning and adherence to SSA rules. By understanding the SGA limits, utilizing the TWP, and maintaining accurate records, you can successfully manage your business without jeopardizing your benefits.