Does Passive Income Affect Social Security Disability?

When you’re getting Social Security Disability benefits, it’s normal to wonder if other money you bring in, like passive income, can affect these benefits. In this blog, we talk about different kinds of passive income, such as investments, rental properties, and making money through online opportunities. We’ll explain how each of these can potentially impact the benefits you get from the Social Security Administration (SSA).

Understanding Social Security Disability Benefits

The Social Security Administration has two main disability benefit programs: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).

Social Security Disability Insurance is available to people who meet the SSA’s definition of disability and have earned enough work credits through previous employment. SSDI is not affected by your financial resources. However, income you earn from working can affect your eligibility and benefits.

Supplemental Security Income is a needs-based program. It is for people with limited income and resources who are disabled, blind, or 65 years old or older. Because SSI is based on financial need, certain types of income and assets can affect how much you receive or whether you qualify.

This difference is important when looking at how passive income affects Social Security benefits. The type of disability benefits you receive and the source of your income can determine whether that money affects your benefits.

Does Investment Income Affect Social Security Disability Benefits?

Investment income can include money you receive from dividends, interest, and other investments. Whether this income affects your Social Security Disability benefits depends on whether you receive SSDI or SSI.

If you receive SSDI, investment income generally does not affect your benefits. SSDI eligibility is based in part on your work history and the Social Security taxes you paid while working. Because investment income is generally not earned income from work, it typically does not count against your SSDI benefits.

However, if you receive SSI, investment income can affect your benefits. SSI eligibility is based on financial need. The SSA may consider income from investments when looking at your overall eligibility or monthly benefit amount.

Does Rental Income Affect Social Security Disability?

Rental income is another type of passive income that may affect Social Security Disability benefits. How the SSA treats this income can depend on whether you simply receive rental payments or actively work to manage a property.

For SSDI, rental income generally does not affect your benefits when it is considered passive income. However, the rules can become more complicated if you perform significant work related to the rental property. Learn more at our blog: Does rental income affect SSDI?

For SSI, rental income can affect your eligibility or benefit amount because SSI has income and resource limits.

Income From Digital & Social Media Marketing

Social media and other online platforms have created new ways to earn money from home. For example, people may earn income through YouTube, Instagram, TikTok, affiliate marketing, sponsored content, advertisements, or product endorsements.

If you receive SSDI, the important question is not simply whether you earn money online. The SSA may consider how much work you perform to earn that income. Regularly creating content, managing accounts, communicating with sponsors, or promoting products may be considered work activity.

Some online income may be more passive. For example, you might continue earning advertising or affiliate revenue from content you created in the past, even when you are no longer actively working. How it affects your SSDI benefits depends on the circumstances, including any ongoing work you perform.

If you earn money online while receiving SSDI, report your work activity and relevant income changes to the SSA. Keep records of your earnings, business expenses, hours worked, and the tasks you perform. These records can help the SSA evaluate your self-employment activity.

Whether online work affects your SSDI benefits depends on Substantial Gainful Activity (SGA) rules, any applicable work incentives, and your individual circumstances.

Rescinded Benefits: What You Should Do

If your disability benefits are stopped because of your income, whether it’s passive or active, the first step is to understand why. Review the letter from the Social Security Administration explaining their decision. If it’s unclear or you disagree, consider speaking with a disability attorney who can help clarify the situation.

At Leventhal, Sutton & Gornstein, we can guide you through the process of appealing the SSA’s decision. Remember, you have the right to challenge their decision and present your case. Keep detailed records of your income, time spent working, and any communication with the SSA, as this information may be crucial to your appeal.

Schedule a Free Case Consultation With Leventhal, Sutton & Gornstein

Understanding how passive income affects SSDI or SSI benefits can be complicated. You may be asking, “Does investment income count against Social Security?” or wondering whether rental income affects your benefits. The answers can depend on the type of disability benefits you receive and how the income is earned.

At Leventhal, Sutton & Gornstein, we have represented thousands of people before Social Security. Over five decades of practice, our attorneys have also litigated more than 750 disability cases in federal court. We can review your situation, explain how different sources of income may affect your benefits, and help with disability applications and appeals.

Contact Leventhal, Sutton & Gornstein today to schedule a free consultation and learn more about your Social Security Disability options.