After you get approved for Social Security Disability Insurance (SSDI) benefits, the Social Security Administration (SSA) will periodically evaluate your claim to make sure you are still eligible for the benefits. But considering the many rules regarding income that exist in both the Supplemental Security Income (SSI) and SSDI programs, are you required to report your income to the SSA?
The Social Security Administration requires both SSI and SSDI recipients to disclose their income as soon as there are any changes. If the SSA finds that you have not disclosed your full income, they may consider it fraud and even charge you penalties.
Read below for more information on what types of income you are required to report to the SSA.
Types of Income
Depending on whether you are receiving Social Security Disability Insurance or Supplemental Security Income, there are different types of income that are required to be reported to Social Security.
There are four main types of income that the SSA monitors:
Earned Income
This includes earnings that you receive from a job, earnings from self-employment, and royalties (such as payments from patents or copyrights), among other types of income.
Unearned Income
This includes pensions, unemployment payments, Social Security retirement, dividends, interest, and monetary gifts.
In-Kind Income
Non-monetary forms of payment are known as “in-kind income.” This includes gifts of food and housing that a recipient does not have to pay for, such as those received from friends and family.
Deemed Income
This is the percentage of a spouse’s, parent’s, or sponsor’s SSI payout. The SSA uses the term “deemed income” to identify the process of considering another person’s income to be your own.
Which Income Are You Required to Report?
You are required to notify the SSA of any change in your earnings, regardless of whether you are returning to work or experiencing a change in your income for any other reason.
Do not delay in reporting any changes to work or income status. If you do, you run the risk of an overpayment. If you accidentally receive an overpayment, you might end up being forced to pay back the money to the Social Security Administration.
If you are receiving both federal Supplemental Security Income and Social Security Disability Insurance, you must disclose your wages to both of your Social Security claims agents.
Make sure that you disclose all of your gross income to the SSA when you are reporting changes to your earnings. Let them know if you receive pay subsidies or Impairment Related Work Expenses (IRWEs).
Your Social Security claims representative can provide you with more information about all the information you are required to report.
How to Report Income to Social Security
You may be required to report your income differently based on which program you are reporting for.
Supplemental Security Income
If you are an SSI beneficiary, you can report changes in your income in the following ways:
- You can contact your local Social Security office either in person or over the phone.
- Send a letter to the Social Security office in your area. Make sure that the envelope is addressed to the Social Security Administration by writing “Attention: SSI” on it.
When it comes to reporting things over the phone, using an app, or using my Social Security website, there are some restrictions that apply. You will not be able to report through these methods if you:
- Incur Impairment Related Work Expenses (IRWEs);
- Qualify as statutory blind;
- Have a Plan to Achieve Self-Support (PASS);
- Have deemed income; or
- Work for multiple employers in a single month.
Social Security Disability Insurance
Get in touch with your neighborhood Social Security office to find out when and how to report any changes to your earnings for SSDI. You might be able to report your income in one of the following ways:
- by phone, through the mail, in person at the Social Security office in your area, or
- through the online reporting tool provided by the My Social Security website.
Additionally, if you are receiving SDDI and SSI benefits, you are required to disclose your wages to the claims agents for each program individually.
Risk of Overpayments
If you fail to timely report your income to the SSA, you run the risk of receiving more benefits than you are entitled to. This may result in what is referred to as an “overpayment.”
It’s likely that Social Security will require you to reimburse this money back to them. If you are unable to reimburse this money all at once, you may be required to pay a portion of it back to Social Security each month.
Additionally, if you receive Social Security Income and do not disclose the amount of assets you have, such as your savings and checking accounts, you may be subject to an overpayment.
As an example, Social Security may determine that you were not qualified for the SSI benefits you were getting because you had more than $2,000 in resources.
How to Report Earnings from Self-Employment
When you are self-employed, it can be difficult to accurately report your revenue, which is why it is essential to maintain accurate records of your business transactions. Be sure to keep the receipts for any work-related costs that you might want to claim if you are engaging in any form of work-related incentive.
The SSDI and SSI programs calculate income from self-employment differently from income from a job.
When determining your eligibility for Social Security, for instance, the SSA will consider your net profits from self-employment, which is your profit after deducting all of your business expenses.
The Social Security Administration will require that you include this information on your annual tax return.
Conclusion
The Social Security Administration diligently evaluates cases and takes any changes in the claimant’s income seriously.
This is why it is important to report any changes to your income to the SSA, regardless of whether you are enrolled in the SSI or SSDI programs. If you don’t, you may be required to pay back your benefits along with penalties.
