How Social
Security Disability
Insurance (SSDI)
Work Incentives
for Self Employment
Help You:
The Social Security
Administration (SSA)
counts
Net Earnings from
Self Employment (NESE).
This is your gross
receipts minus your
business expenses
x.9235. This way, a
portion of your net
earnings are counted
in determining your
income from self-
employment.
Several work
incentives are
important for
beneficiaries
involved in
self-employment.
These include:
-
Trial Work
Period (TWP)
— For
self-employment,
TWP months count
when
NESE
is over $720 (in
2012), or
when you work
for 80 hours or
more in the
self-employment
venture. It is
important to
report your
earnings and the
hours you work
each month to
Social Security
Administration
when you are
self-employed.
-
Extended Period
of Eligibility
— SSA will
average your
NESE
over a period of
work activity
determining
whether you are
earning
Substantial
Gainful Activity
(SGA). This
amount is $1010
(in 2012). SSA
will consider
your activities
in your
business, and
the value of
these activities
to your
business. They
also consider
market
conditions,
investments, and
services of
others who help
you, as well as
your profit
distribution in
determining SGA.
-
Impairment-Related
Work Expenses (IRWE)
—- If you have
reasonable
expenses for
items and
services that
are related to
your disability,
that are
necessary for
you to work,
that you pay out
of pocket in the
months you are
working and are
not reimbursed
by another
source, an IRWE
may help you
during
self-employment
in keeping your
NESE
below the
SGA
level. This work
incentive may
apply to you in
some limited
circumstances if
you are unable
to claim these
items as a
business
expense.
-
Unincurred
Business
Expenses
—- If there is
business support
given to you at
no cost (for
example
Vocational
Rehabilitation
pays for
services or
equipment you
need in
self-employment),
the cost of this
support is
deducted from
your net
earnings in
determining when
you have reached
SGA.
-
Unpaid Help
—- If you
receive help
from friends,
relatives,
professionals or
others in
performing
business-related
tasks, and they
are not paid for
this assistance,
the fair labor
cost of this
assistance is
deducted from
your net
earnings in
determining
whether you have
engaged in
SGA.
-
Plan for
Achieving Self
Support (PASS)—
A PASS allows
you to set aside
income
and/or
resources
for a specified
time for a work
goal. A PASS can
help you
establish or
maintain
Supplemental
Security Income
(SSI)
eligibility and
can increase
your SSI payment
amount. SSA does
not count the
income and/or
resources you
set aside under
a PASS when your
SSI eligibility
and payment
amount are
determined. A
PASS should be
submitted on
form
SSA-545
and must be
approved by SSA. A PASS with a
self-employment work
goal must include a
business
plan.
You may contact
a benefits
counselor or SSA
to learn more
about a PASS.
