What Types of Income Do You Have to Report on Social Security Disability?

When you receive Social Security Disability Insurance (SSDI) benefits, it is crucial to understand the types of income you must report to the Social Security Administration (SSA). Reporting income accurately ensures compliance with SSA regulations and helps maintain your benefits. Let’s dive deeper.

Types of Income to Report

When receiving SSDI benefits, you must report two main categories of income: earned income and unearned income. Each category has specific components that require attention.

Earned Income

Earned income refers to money you receive from work. This includes:

• Wages: Money earned from an employer. For example, if you work part-time at a local store in Mobile and earn $1,200 a month, you must report this amount.
• Self-Employment Earnings: Income generated from running your own business or freelance work. For instance, if you operate a landscaping business in Mobile and earn $1,000 in a month, this is considered earned income.
• Changes in Work Activity: If you start or stop working or if your pay rate changes, these changes must be reported. For example, if you were working 15 hours a week at $10 per hour and then increased your hours to 25 hours at the same rate, you need to report this change immediately.

Unearned Income

Unearned income refers to money received without performing work. This includes:

• Workers’ Compensation: Payments received due to a work-related injury. For example, if Sarah is receiving $1,800 per month in workers’ compensation after an injury at her job in Mobile, she must report this amount.
• Public Disability Benefits: Other government disability payments that you receive can fall into this category. If you receive state disability benefits of $500 monthly alongside your SSDI payments, this amount should also be reported.
• Sick Pay and Vacation Pay: Payments received during periods when you are unable to work due to illness or while on vacation count as unearned income. For example, if Emily receives $2,000 in sick pay while recovering from surgery, she must report this amount.
• Pensions from Non-Social Security Jobs: Retirement benefits from jobs that did not contribute to Social Security must also be reported. For instance, if Mark receives a pension of $1,200 monthly from his previous employer’s retirement plan in Mobile, he needs to inform the SSA about this pension.

Reporting Requirements

Residents of Mobile receiving SSDI benefits are required to report any changes in their earnings or other relevant financial information promptly. The following situations require immediate reporting:

• Starting or Stopping Work: If you begin a new job or stop working altogether.
• Changes in Pay or Hours Worked: Any adjustments in your salary or the number of hours you work should be reported.
• Additional Help Received at Work: If you receive assistance related to your disability that enables you to work (e.g., job coaching), this should be disclosed.

For those acting as representative payees for someone receiving SSDI benefits, it is also your responsibility to report these changes on behalf of the beneficiary.

How and Where to Report

You can report your income through several methods:

1. In-Person: Visit your local SSA office in Mobile for assistance with reporting changes.
2. Phone: Call the SSA’s toll-free number at 1-800-772-1213. There is a dedicated wage reporting service available during the first six days of each month.
3. Online: While direct online reporting may not always be available for all beneficiaries, the SSA website offers resources and information about how to report changes effectively.

Implications of Reporting Income

It’s important to understand that reporting income does not automatically result in a reduction of your SSDI benefits. The SSA has specific guidelines regarding how much you can earn while still receiving benefits:

For 2024, the substantial gainful activity (SGA) limit is set at $1,310 per month for non-blind individuals and $2,190 per month for blind individuals. If your earnings exceed these limits consistently over time (generally over several months), it may affect your eligibility for SSDI benefits.

Trial Work Period (TWP)

The SSA provides a Trial Work Period (TWP) which allows beneficiaries to test their ability to work without losing their benefits immediately. During this period:

• You can earn more than the SGA limit without affecting your SSDI payments.
• The TWP lasts for up to nine months within a rolling 60-month period where any month with earnings above $1,050 counts as a trial work month.

For instance, if Anna works part-time during her TWP and earns $1,600 in one month but then returns to her previous level of disability-related limitations after three months of working part-time, she will not lose her SSDI benefits immediately due to her trial work status.

For residents of Mobile seeking personalized guidance regarding SSDI benefits and reporting requirements tailored specifically to your situation, consider consulting with a qualified attorney or advocate specializing in Social Security law. At Lemoine Law Firm, we are dedicated to helping clients understand their rights and responsibilities under SSDI regulations so they can focus on their health and well-being without unnecessary stress about their financial situation.

Get in touch with our experts today!