One of the more bewildering aspects of government benefits is where they draw the line in terms of income limits. How much do you earn before Social Security decides that you are self-supporting and don’t need the benefits?
Let’s break this down.
What is the Upper Limit?
Let’s start with the simple answer. You qualify for SSDI if your income is less than $1,350 a month. If you are blind, the income limit is $2,260 a month. Your marital status doesn’t affect this.
This amount is called the Substantial Gainful Activity level, and it changes every year. The basic idea is that if you can take in more than that amount, the disability isn’t interfering with your earning abilities.
The good news is that SSDI, unlike SSI, doesn’t count your assets. Things such as money in your savings account, your car, and your jewelry have no bearing on whether you are considered disabled enough to receive SSDI payments.
What Sources of Income Count?
The stumbling block for most people is how to calculate their monthly income. Your wages from your job count as income, but SSI determines it in an interesting way. They take your gross monthly income and then subtract:
1. Sick leave pay
2. Vacation pay
3. Wage subsidies
4. Impairment Related Work Expenses
Those last two take some explaining. A wage subsidy is a condition where you earn the same amount that someone else in the same position does, but certain actions have been taken to accommodate your disability that reduces your productivity. These conditions are:
1. You get more supervision than your colleagues.
2. You do fewer tasks for the same pay.
3. You need coaching or mentoring at your job.
Wage subsidies come into effect after the Trial Work Period ends.
Impairment Related Work Expenses are documented payments for equipment or services that you need because of a disability in order to do your job. An example might be a wheelchair if you need it to get around your workplace. Copayments for prescriptions, doctor visits, and other medical expenses count as IRWEs.
An IRWE can only be subtracted from your income if you have documentation of money spent on the item, such as canceled checks and receipts, and Social Security has to approve of the expense.
The Self-employed Have Different Rules
Not everyone who is disabled works for someone else. If you have your own business, Social Security has three tests to see if you meet the SGA qualifications.
The first test is:
1. Do you own and run a business by yourself (except a farm?)
2. If you own the business with other people, are you doing more than half of the managing or do you spend more than 45 hours a month managing the business?
3. Is your net countable income more than $1,350? They decide this by taking the net profit, reducing it by 7.65%, and then deducting unpaid labor expenses, IRWEs, and unincurred business expenses.
The second test is:
1. Is your Work Activity comparable to someone who isn’t disabled? In other words, are you working the same hours, using the same skills, putting in the same effort, and taking on the same responsibilities as someone in a similar business without disabilities?
The third test is:
1. Is your work worth more than $1,350? If someone else was doing it, would you pay them more than the limit to do the job?
If the answer to any of these three tests is ‘yes,’ you won’t qualify for SSDI.
You Might Need A Lawyer
Navigating the income limit is tough and requires expertise. This is why Greeman Toomey PLLC specializes in helping people apply for SSDI. We have assisted more than 90,000 people get the money they need, and we would love to see what we can do for you. Contact us for more information.
