Does Rental Income Affect SSDI or SSI Benefits?
If you receive Social Security Disability (SSD) benefits, you might be wondering what could affect your benefit eligibility. The rules about earned income are fairly straightforward. However, if you earn passive income like rental income, you might be asking how this affects your monthly payments.
At Drozdowski & Rabin, PLLC, we understand your concerns and want to help you protect your finances. In this article, we’ll help you understand how passive income affects Social Security Disability benefits.
How Do Social Security Disability Programs Work?
Before we discuss rental income, let’s look at the two main disability programs:
Social Security Disability Insurance (SSDI)
SSDI helps disabled individuals who have worked and paid into Social Security through payroll taxes. To qualify, you must have:
- Enough work credits based on your age
- A medical condition that meets the Social Security Administration’s (SSA) definition of disability
- Inability or limited ability to work due to your condition
Supplemental Security Income (SSI)
Work history isn’t taken into account for SSI beneficiaries. SSI is a needs-based program that helps people who:
- Have limited income and resources
- Are disabled, blind, or 65 and older
- Meet specific income and resource limits
How Rental Income Affects Your Disability Benefits
Impact on SSDI Benefits
Good news for SSDI recipients: Rental income usually doesn’t affect your SSDI benefits. Here’s why:
- SSDI mainly looks at earned income. This is because to qualify for SSDI, you must be unable to engage in work activities. If you can perform Substantial Gainful Activity, you will not be able to receive benefits.
- Rental income counts as “unearned” or passive income.
While you can typically receive rental income without losing SSDI, there are some exceptions. Certain activities could count as work and may affect your benefits:
- You work as a real estate dealer and receive rental income as part of your business
- You provide extra services to tenants, such as regular cleaning or maintenance
- You earn rental income from farmland and materially participate in the production of farm commodities or managing the production of farm commodities
Impact on SSI Benefits
SSI works differently than SSDI since it is a needs-based program for people with limited income and resources. Rental income can affect your SSI benefits because:
- SSI has strict income limits
- Both earned and unearned income count toward these limits
Rental income might reduce your monthly SSI payments or make you ineligible for SSI. However, the SSA doesn’t count all income towards your SSI benefit amount. The best way to find out if your passive income will impact SSI eligibility is to contact a qualified attorney.
Reporting Your Rental Income
You must report all income you receive, including rental income, to the SSA. Here’s how:
- Be upfront with what income you make as soon as possible
- Keep detailed records of all rental income
- Report changes in income promptly
- Save documentation of expenses
- Contact Social Security if you’re unsure about reporting requirements
What To Do if Your Benefits Are Affected
If the SSA questions your benefit eligibility or sends a notice about changes:
- Don’t panic
- Read all notices carefully
- Respond to all requests quickly
- Keep copies of everything you send
- Consider getting legal help
What If You Lose Your Benefits?
If you lose your benefits due to income, there are options available:
- You have 60 days to file an appeal
- You might be able to keep receiving benefits during the appeal
- Getting legal help can improve your chances of retaining benefits
Choose Drozdowski & Rabin for Your Disability Case
At Drozdowski & Rabin, PLLC, our team brings 100 years of combined legal experience to the table. We understand the complex rules surrounding income and SSD benefits because we focus exclusively on disability law.
You don’t have to let concerns about rental income affect your peace of mind or finances. When you need help protecting your benefits, our experienced disability attorneys in Knoxville, TN, can help you:
- Understand how rental income affects your benefits
- Report income correctly
- Appeal benefit reductions or terminations
- Protect your rights throughout the process
Contact Us Today
Call Drozdowski & Rabin, PLLC, at (865) 299-7080 or contact us online for a free consultation. We serve clients throughout Tennessee and the surrounding areas and we’re ready to help you protect your financial security.
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