Applying for Social Security Disability Insurance (SSDI) benefits can be complex, especially for self-employed individuals. Unlike traditional employees, self-employed workers have different income structures and reporting requirements, which can make navigating the SSDI process challenging.

This blog provides essential tips from an experienced SSDI attorney to help self-employed individuals understand how to qualify for SSDI and strengthen their disability claims.

Understanding SSDI for Self-Employed Individuals

SSDI benefits are available to workers who have earned enough Social Security work credits and cannot work due to a long-term disability.

For self-employed individuals, proving eligibility for SSDI benefits can be more complicated than it is for salaried employees because their income may fluctuate, and their work records may not be as straightforward.

The Social Security Administration (SSA) looks at your earnings history to determine your eligibility for SSDI. Self-employed individuals earn Social Security credits based on their net income reported on their tax returns.

To qualify for SSDI, you must have earned a sufficient number of work credits over a specific period and prove that your disability prevents you from performing substantial gainful activity (SGA), which for self-employed individuals is often a gray area.

SSDI Attorney Tips for Self-Employed Individuals

One of the most critical steps in applying for SSDI as a self-employed individual is maintaining detailed records of your income and work activity. This includes tax returns, profit and loss statements, and any documentation that shows how much work you are performing.

The SSA will review this information to assess whether you meet their criteria for disability, so it’s essential to ensure accuracy.

Prove That You Cannot Perform Substantial Gainful Activity (SGA)

The SSA uses the concept of “substantial gainful activity” to determine if an applicant is capable of working despite their disability. As of 2024, the monthly income limit for SGA is $1,550  for non-blind individuals and $2,590 for blind individuals.

For self-employed individuals, the SSA also considers factors like the type of work you do, how much time you spend on work-related activities, and whether your work is comparable to what others do for pay.

To strengthen your claim, keep records of the hours you work and how your disability affects your ability to complete tasks. Work with an SSDI attorney who can help you gather the right evidence and present your case in a way that demonstrates your inability to perform SGA.

Show a Decline in Business Activity Due to Your Disability

One way to prove that your disability has significantly impacted your ability to work is by showing a decline in your business activity. This can include a reduction in your earnings, a decrease in the number of clients you serve, or an inability to maintain the same level of productivity.

An SSDI attorney can help you compile evidence such as business records, client communications, and financial statements that show how your disability has affected your ability to run your business.

Understand the Self-Employment Test

The SSA uses a special set of rules to evaluate disability claims from self-employed individuals. This is known as the “self-employment test,” and it includes three main criteria:

• Significant Services and Substantial Income Test: If you provide significant services to your business and earn substantial income, the SSA may consider you capable of SGA, even if your earnings are below the SGA threshold.
  • Comparability Test: The SSA compares your work to that of non-disabled individuals who are self-employed in similar roles. If your work is comparable to others without disabilities, the SSA may determine that you are not disabled.
  • Worth of Work Test: The SSA evaluates whether the work you are performing is worth more than the SGA limit, even if you are not being paid directly.

An experienced SSDI attorney can help you navigate these tests, present your case effectively, and avoid common pitfalls that self-employed individuals face during the SSDI application process.

Prepare for the SSA’s Scrutiny of Your Claim

Self-employed individuals often face additional scrutiny from the SSA because their income and work patterns can be less consistent than those of traditional employees. This means you must provide detailed, clear, and compelling evidence to support your claim.

Work closely with your SSDI attorney to prepare your application thoroughly. They can help you organize your records, gather medical evidence, and craft a narrative that explains how your disability affects your work and daily life.

Why You Need an SSDI Attorney for Your Claim

Applying for SSDI as a self-employed individual can be complicated, but an experienced SSDI attorney can guide you through the process and improve your chances of success.

An attorney can help you understand the SSA’s requirements, assist with gathering documentation, and represent you if your claim is denied and you need to file an appeal.

If you are self-employed and facing challenges in applying for SSDI, Disability Attorney Services is here to help.

Our experienced attorneys at Disability Attorney Services can guide you through the complexities of the SSDI application process, ensuring that your claim is presented with the best possible evidence. Contact us today for a consultation and let us help you secure the benefits you deserve.