Managing SSI Finances
To remove SSI and FICA taxes for yourself, pay yourself as a 1099 independent contractor. If there is no income, there is nothing to use to pay self-employment tax.
Explore programs, like SNAP and Medicaid, that help you save money and take care of basic needs while on SSI.
Understanding SSI Benefits
SSI provides monthly payments to people with limited income and resources who are disabled, elderly, or blind. SSI payments are calculated based on income level. The maximum SSI payment amount varies by state and is often lower than the maximum SSDI payment. SSI payments cover basic needs such as food, housing, and clothing.
Working While on SSI
There is no limit on hours you can work on SSI, rather a monthly income limit. For an individual in 2020, you need to make less than $794 monthly and have less than $2,000 in assets to qualify.
Starting a Small Business on SSI
Can I start a small business while on SSI? The Social Security Administration allows recipients to test their ability to work or start a small business. First, the Social Security Administration is paying you these benefits because they have determined that you are disabled and unable to work.
By starting your own business, you are contradicting this decision. Generally, if you are self-employed, Social Security Administration will consider your activities and their value to the business to determine whether you have engaged in “substantial gainful activity.”
Considerations for Small Business Owners
Many people dream of starting a nonprofit organization to serve their goals, and this is completely possible to do from your own home. The benefit of having a corporation is that the money goes into it, then the corporation writes a paycheck to yourself. Your paycheck is then your income. So that paycheck is your income. The corporation manages the money including expenses of the business.
Social Security Disability Benefits and Work
Despite disability, many SSDI recipients fear their checks might be in jeopardy if they work.
To be eligible for Social Security disability benefits, you’ll need to make $1,220 or less per month in 2019. If you are blind, the limit is $2,040. This amount is known as substantial gainful activity and is adjusted each year.