Working affects eligibility for Texas Social Security disability benefits

Most of our Texas disability clients are not able to work when they apply for Social Security disability benefits. However, not working at all raises obvious financial problems, so some people attempt to work in some reduced or part-time capacity.

Unfortunately, although it seems honorable to do whatever work you can, if you are working when you apply for Social Security disability benefits then you have to deal with one more issue in the process. That is because the first thing that the Social Security Administration addresses in its evaluation process is whether or not you are working at what it calls a “substantial gainful activity.”

Working at a substantial gainful activity

The Social Security Administration has detailed regulations and guidelines that it uses to determine whether work that constitutes substantial gainful activity. Essentially, substantial gainful activity means work for pay or profit, and if the pay or profit is too high then the Social Security Administration may conclude that you are not entitled to disability benefits because you are able to work.

The Social Security Administration’s computation of your earnings begins with your gross earnings, but then it applies certain deductions and income averaging before it compares your work earnings with the substantial gainful activity earnings guidelines.

However, there are two work situations that get special treatment:

  • Work that includes a subsidy.
  • Self-employment.

Work that includes a subsidy

Sometimes people who have a work disability are able to get into an unusual work situation where they are paid significantly more than the actual value of their services. Usually this occurs because of a family relationship, a past association with the employer, or the employer’s concern with the person’s welfare. In this circumstance, part of the pay is considered a subsidy.

For example, someone may work for a relative and be allowed to work under special conditions, such as being allowed to work at a lower standard or productivity than other workers, or being given only work that is especially suited to the person’s impairment.

The Social Security Administration recognizes this type of special circumstance, and does not consider any income that is not directly related to productivity. Therefore, for purposes of evaluating Social Security disability eligibility, only the true value of the work is counted.

Self-employed claimants

The Social Security Administration also recognizes that self-employment income is not a reliable factor in determining a person’s substantial gainful activity because the income may be partly based on capital investment rather than the value of the person’s services.

The computation of whether the income of a self-employed person is above the substantial gainful activity level becomes even more complicated than with regular employees, and involves three different tests:

  1. The significant services and substantial income test. Under this test, a claimant is considered to be engaging in substantial gainful activity if he or she is providing significant services and receiving more than the same guidelines as used for employees.
  2. The comparability of work test. Under this test, a claimant is considered to be engaging in substantial gainful activity if his or her work activity is comparable to that of unimpaired individuals in the same community engaged in the same or similar businesses as their means of livelihood.
  3. The worth of work test. Under this test, a claimant is considered to be engaging in substantial gainful activity if his or her work activity is worth more than the amount shown for that calendar year in the substantial gainful activity earnings guidelines.

Get help from a knowledgeable Texas disability lawyer

Qualifying for Social Security disability benefits while you are working can be challenging. The Social Security Administration’s regulations and guidelines are complicated and must be followed carefully.

Whether or not you are working, it is worth your peace of mind to have your case presented by an experienced Texas disability attorney.

If you are not already represented by a Texas Social Security disability attorney and want our evaluation, give us a brief description of your claim using the form to the right. Or you may e-mail or call our office at:

E-mail
Phone: 800-800-6353

Morgan & Weisbrod
Texas Social Security disability lawyers
with offices in Dallas, Austin (Georgetown), and Houston