ARE DISABIITY BENEFITS MEANS TESTED?

Social Security disability benefits (Title 2) are not means tested, meaning that a claimant does not have to have limited income or financial resources to receive SSDI benefits.  

However, if the claimant has income that looks like he or she is working, the source of that income will be questioned and verified.  Phillip, for example, is a retired partner in a small professional firm. He owns 25 percent of the firm he worked for.  He stopped working in 2015 but, as part-owner, he still receives a share of the profits generated by the firm.

Social Security will make sure that Phillip's income is not wages, salary, commissions or other work-related income.  As long as he is doing no work, the income is not a factor in his disability claim.  Working tends to convince Social Security that a person is not disabled (especially if earning at least $1,130 per month, their definition of "substantial gainful activity").  However, income from sources that do not involve work won't affect a claim.  

 If a person is being paid now for work he completed in the past, it should not affect a disability claim.  For example, Daniel was an insurance agent who receives annual renewal commissions on policies he sold years ago. But he has not worked in 5 years.  These commissions won't affect an SSDI claim since Daniel is being paid for work he completed before he filed his disability claim.

 Claimants who have income from an employer sponsored retirement plan (401-K, profit sharing, etc.), or from an insurance disability policy should be prepared to document the source and type of money they are receiving, to prove that it is not wages.  If the claimant received paid sick leave, vacation pay or other benefits AFTER filing for disability, these should also be documented.

 In short, there is no restriction on income for SSDI beneficiaries but there is a restriction on working.  Working may show that you are not disabled.

Another program, called Supplemental Security Income or SSI (Title 16) is means tested and income/financial resources can affect eligibility. 

Your advocate or representative can help these and other technical details of a Social Security disability claim and ensure that you receive maximum benefits.
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The Forsythe Firm in Huntsville fights for the disabled, helping hundreds of claimants each year to file claims, appeal unfavorable decisions and collect disability benefits.  For a free consultation without obligation, call the Forsythe Firm at (256) 799-0297. 



 

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