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Passive Income Affecting Social Security Disability Benefits

When you’re getting Social Security Disability benefits, it’s normal to wonder how other money you make, like passive income, can affect these benefits. Let’s talk about different kinds of passive income, such as investments, rental properties, and making money online through online opportunities.

We’ll explain how each of these can potentially change the benefits you get from the Social Security Administration.

Understanding Social Security Disability Benefits

For disabled individuals, there are two different types of benefits they can receive through the social security system.

The first is Social Security Disability Insurance (SSDI), which is for people who can’t work because of a disability. It helps by giving them some income. This program is different from Supplemental Security Income (SSI), is a needs-based program, and has income requirements that a person must meet to become eligible.

Long-Term Disability Benefit is written on a white sticky note next to a yellow sticky note with a wheelchair symbol.

Does Investment Income Affect Social Security Disability Benefits?

Let’s talk about the money you make from investments and how it can affect the disability benefits you receive. This can include dividends from stocks or interest from accounts you own.

If you’re getting SSDI benefits, usually your investment income doesn’t change anything. SSDI is partially based on your work history as well as the taxes you’ve paid over time if you’re receiving SSDI as an adult. However, if you’re getting SSI, the money you make from investments matters since it affects your eligibility for benefits.

Does Rental Income Affect Social Security Disability?

Rental income is another type of passive income. The Social Security Administration looks at this to see if it’s passive or if you’re actively working to earn it.

If you’re earning money from rental properties you own, it’s usually viewed as passive income. For SSDI, rental income typically doesn’t affect your benefits. For SSI, however, the money you make from rentals can affect whether you qualify for benefits because of the income and resource limits.

Income From Digital & Social Media Marketing

The digital era has ushered in diverse opportunities for earning online, particularly through digital and social media marketing. The landscape of social media influencers, including a growing number of disabled creators on platforms like Instagram, TikTok, and Facebook, has expanded the avenues for generating income.

This trend underscores an emerging space where individuals on disability can potentially earn extra money. However, caution is advised.

SSDI recipients need to ensure that their online earnings, especially those perceived as passive (such as ongoing revenue from pre-created content), do not inadvertently demonstrate their capacity to engage in substantial gainful activity, which could jeopardize their SSDI status.

This evolving dynamic of social media platforms has enabled many to carve out niches for themselves, often turning hobbies or personal interests into income-generating ventures. This can range from content creation to affiliate marketing and product endorsements.

The intersection of creativity and commerce on these platforms presents a unique opportunity for individuals with disabilities, allowing for flexible, remote work options that cater to various needs and abilities.

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 (SSA) explaining their decision. If it’s unclear or you disagree, consider speaking with a disability attorney who can help clarify the situation.

They 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 daily/weekly, and any communication with SSA, as this information can be crucial in your appeal.

Reporting Income and Getting Advice

It’s very important to tell the Social Security Administration about all the money you make, whether it’s passive or active. This helps you follow the eligibility requirements so that you’re able to keep your benefits.

If you’re not sure about how a source of income could affect your benefits, then talking to a disability attorney can help.

Schedule A Free Case Consultation With Leventhal, Sutton & Gornstein

Understanding how passive income affects your SSDI or SSI benefits can be tricky. That’s why getting legal advice that’s right for you is crucial. At Leventhal, Sutton & Gornstein, we are here to help you achieve the benefits you rightfully deserve.

Our attorneys offer free consultations to look at your situation and help you apply for disability benefits. Contact us today and let us help get approved for disability benefits.

Posted on April 24th, 2024 by Leventhal, Sutton and Gornstein

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