How do I plan to be self-employed while on SSI/SSDI?


I am self-employed. How do I plan to work while on SSI/SSDI?

  • For benefits purposes, any work on a 1099 tax basis or starting a business is considered self-employment.
  • Report to Social Security that you are starting a business.
  • Business bank accounts and inventory are not resources for SSI and Medicaid due to Property Essential for Self-Support (PESS) provision.
  • A Sole Proprietor or Partnership is the preferred organizational structure for those on means-tested benefits like SSI and Medicaid. Note that ownership of C-Corp, S-Corp, or LLC “stock” is counted as a resource against SSI and Medicare benefits because it negates the PESS exclusion.
  • Choose the right accounting method: Cash accounting for SSI and accrual accounting (required) for SSDI/CDB. You should consider using the services of a qualified CPA, accountant or bookkeeper.

Additional Resources

Global Genes Badge

FD/MAS Alliance is a recipient of the Financial Advocacy in RARE Impact Grant sponsored by Global Genes.  Thanks to this award, FD/MAS Financial Literacy 101 is made possible.  We thank Michael Beloff, CFP®, ChSNC® Belvedere Wealth Partners, for donating his time and financial expertise and Caroline Fuchs, CAE, for contributing her time, communications, and digital strategy expertise to the FD/MAS community for this resource.