Many individuals who receive disability benefits may wonder if they can also own and operate a business. This topic is crucial as it addresses the balance between sustaining one’s livelihood and adhering to the regulations of disability programs. Understanding the rules and limitations can help beneficiaries make informed decisions about their financial and professional futures.
Can you be on disability benefits and own a business? Yes, you can be on disability benefits and own a business. However, there are specific guidelines and limitations that must be followed to ensure continued eligibility for benefits. These guidelines vary depending on the type of disability benefits one receives, such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).
Social Security Disability Insurance (SSDI)
For those receiving SSDI, the Social Security Administration (SSA) allows beneficiaries to engage in substantial gainful activity (SGA) up to a certain income limit. In 2023, the SGA limit is $1,470 per month for non-blind individuals and $2,460 per month for blind individuals. If your business income exceeds these limits, your benefits may be affected. The SSA also offers a trial work period (TWP), during which beneficiaries can test their ability to work for at least nine months without losing benefits, regardless of the income earned.
Supplemental Security Income (SSI)
For SSI recipients, the rules are different. SSI is a needs-based program, so any income, including business income, can impact the amount of benefits received. The SSA uses a formula to determine how much of your income is countable and how it affects your SSI payment. Generally, the first $65 of earned income and half of the remaining income are excluded from calculations. However, if your countable income exceeds the SSI income limits, your benefits may be reduced or suspended.
It is essential to keep detailed records of your business income and expenses and report them to the SSA accurately. This transparency helps ensure that you remain compliant with the regulations and avoid any potential issues with your benefits. Consulting with a disability benefits advisor or an attorney can also provide personalized guidance based on your specific situation.
Balancing disability benefits and owning a business requires careful planning and adherence to SSA guidelines. By understanding the rules and monitoring your income, you can successfully manage both aspects of your life without jeopardizing your benefits.