If you worked long enough and meet all other qualification requirements when you apply for disability benefits, there is no limit to how much money you can have in your bank account on Social Security Disability Insurance (SSDI). However, the application will ask about your resources and assets.
A Rutherfordton Social Security Disability lawyer can help you understand qualifying and reporting guidelines that you must meet to get—and keep getting—disability benefits. A lawyer can also clarify every phase of the application process, including how to maintain your eligibility. Most SSDI lawyers will represent you at no cost, and you only compensate them when you receive benefits.
How Money in the Bank Affects Your SSDI Benefits
The Social Security Administration (SSA) offers benefits in two categories. Supplemental Security Income (SSI) is a needs-based program. To qualify, you must have little to no income and resources. When you receive SSI benefits, the amount of cash you can have on hand, including in your bank account, is limited.
SSDI benefits are available to individuals who paid into the Social Security program while working and are based on current income. Recipients of this program do not have to contend with any bank account restrictions.
SSDI Benefits Limit How Much Income You Can Earn
While any money you have in your checking or savings account may not invalidate your SSDI benefits, you will have income restrictions to qualify. According to the SSA, the 2024 monthly income limit for SSDI recipients is:
- $1,550 ($2,590 if you are blind) per month
- Offset by any impairment-related work expenses. The amount of qualifying expense typically increases annually.
The SSA requires you to report when you start and stop working. They also require you to notify them when your work hours or rate of pay changes. Finally, they require notification when you start paying work-related expenses.
What You Need to Know About SSDI’s Monthly Benefits and Paying Taxes
For most SSDI recipients, your benefits will not be taxable unless you exceed the Substantial Gainful Activity (SGA) threshold. This is generally $1,550 per month unless you are blind. According to the SSA, SSDI benefits could be taxable if:
- You are a single person earning more than $25,000 per year
- Your joint earnings, if married, exceed $32,000 per year
- You are married, but file individual taxes
In short, the more you earn, the more likely you are to have taxable income. If your income exceeds the allowable amount, you may have to pay taxes on it. Most SSDI recipients do not make enough to have to pay taxes. Your SSDI lawyer will help you understand how your earnings affect your specific situation.
Tax Laws Can Vary by State
Federal income tax and state income tax laws can vary greatly. Depending on the state where you reside, the government could require you to pay taxes. Your lawyer will clarify what you need to know about taxes and SSDI benefits. They can also help you understand any tax restrictions or liabilities if you receive concurrent benefits.
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You Can Own a Business While Receiving SSDI Benefits
Business ownership and self-employment are possible while you receive SSDI benefits and can be a viable option for fulfilling a dream and supplementing your income. To qualify, you must meet certain criteria, including meeting any Code of Federal Regulations guidelines and being a sole proprietor or LLC owner. S-Corp owners could also qualify with some limitations.
If you currently own or are considering starting a business, review your situation with your disability benefits lawyer. Your SSDI attorney can examine your business and its goals. They can also help you understand the SSA’s evaluation guides for self-employed SSDI recipients.
You Could Qualify for Additional Benefits While Receiving SSDI
While receiving SSDI benefits, you could simultaneously qualify for additional government benefits and tax breaks. In addition to the concurrent benefits discussed above, you could also receive:
- Medicare coverage
- Family benefits
- Tax benefits
- Return to work benefits
Low-income SSDI recipients could also receive benefits from the Supplemental Nutrition Assistance Program (SNAP), commonly called food stamps. You may also qualify for Home Energy Assistance Program (HEAP) benefits to help with the costs of heating your home.
How to Qualify for SSDI’s Monthly Financial Benefits
Applying for Social Security Disability can be an overwhelming process. The SSA uses five points to define SSDI eligibility.
- Are you unable to perform SGA?
- Is your medical condition severe?
- Is your disability on SSA’s list of disabling conditions?
- Can you engage in work you did in the past?
- Can you engage in any work at all?
A disability benefits lawyer can guide you through each phase of the process, ensuring your application is complete and accurate. They can also help you file an appeal if the SSA denies your initial application.
The Benefits of Working With an SSDI Attorney
You do not have to apply for SSDI benefits alone. You can have a local lawyer who advocates for you right from the start. They can:
- Clarify all applicable state and federal laws
- Build a strong case file with necessary medical evidence
- Describe the potential timeline and help you streamline the process
- Clarify how you will receive benefits once approved
- Help you establish an electronic means of receiving a direct deposit
Your disability benefits attorney can help you understand each step of the SSDI application process, avoid administrative errors and errors of omission, and ensure your application contains sufficient evidence.
Get Legal Guidance and Support When Applying for SSDI Benefits
Applying for and maintaining SSDI benefits can be a complex and daunting process. Thankfully, it is not one you must navigate on your own. Our SSDI lawyers will help you understand everything you need to know about your benefits.
Get help getting and keeping your benefits. Contact our case review team at Farmer & Morris Law, PLLC to learn more about your SSDI benefits.