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.