Legal Question in Social Security Law in New Jersey
Online business & SS
My sister doesn't want to do anything illegal so if your answer is ''no'' that will end it. She is 43 yrs old, owns a single family home and is permanently disabled. She has a 19 yr old in college, a 17 yr old in HS and is divorced for 11 yrs. She has received SS disability checks for 12 yrs. She receives minimal each month. The state of NJ pays her son's college tuition. She explains that she has recently been given the opportunity to ''own'' an online business, only paying a fee for the setup, that requires no physical input on her part. The website sells itself. She is unable to operate a conventional business. But the potential is there for thousands of $$$ per month income which she desperately needs to survive. If she accepts this offer and makes the money as promised, how does this affect her SS benefits? Is she permitted to bring in extra money or is that automatically considered to be ''working?'' If she lost her disability benefits and this business were to dissolve at some point, then she would find herself with zero income. Is Marissa allowed to show any extra income or is she forever doomed to nothing more than the yearly 2% increases offered by SS? Would incorporating the business help her in any way?
2 Answers from Attorneys
Re: Online business & SS
there are limitations that one can earn. You should check the SSA web site for the proper amounts. It is usuer friendly.
Re: Online business & SS
It is difficult to answer without knowing more. Generally, you can work a bit and still collect some benefit. The Disability insurance program (DIB) and SSI have different rules.
Self employment creates problems related to her net, taxable income after expenses. So she'll need an accountant.
If she nets more than the allowable amount under DIB, SSA will start her on a 'trial work period' which lasts 9 months. Then her Disability benefit is ended.
But if this business is "passive" like a bank account and she does not actively manage the business, the net income possibly might not be considered income from work for Disability (but not SSI). She may end up fighting SSA on this issue.
Check the SSA website for the rules about working while collecting DIB & SSI.
By the way this 'website opportunity' sounds too good to be true.
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