Will Passive Income Affect My Disability Benefits?
The Social Security program in America was created in order to provide disabled individuals with the money they need to be financially stable and secure. Most individuals on SSI are unable to work and therefore need the funding from the program, while some can work only a little bit or only in certain jobs. Regardless of the circumstances, if you have qualified for Social Security benefits, there is a limit to how much you can receive. That limit is determined, in part, by income from other sources and that leads many to wonder if passive income will affect disability benefits.
Firstly, we should define what passive income is. Passive income is defined as any money that you make that does not come from actively working. For example, income from a business that you previously owned or income collected from renting out property would qualify, as no actual work is done in the acquiring of the income. Thankfully, as far as the Social Security Administration is concerned, passive income does not impact the limit of or collecting of SSI benefits.
That being said, it must be proven that the income is indeed completely passive. For example, if you rent your own property, but have to perform maintenance on it, it is considered work. Therefore, in this situation, it is advisable to have an agent or manager perform those duties. It will cut into profits a little bit, but it will ensure the income doesn’t affect your SSI benefits. The same principle applies for owning a business and hiring a general manager to handle the day to day.
Documentation is key when it comes to noting things as passive income and if any complications arise, we at the Franco Law Firm are here to help you gain and continue to gain the highest amount of Social Security benefits as possible. To learn more about the services we offer and to schedule a free consultation today, please call us at (813) 872-0929.