Legal Question in Social Security Law in Pennsylvania

Re: Social Security Disability Benefits

Income from investments should not be an issue for Disability. Disability is a workers insurance program. So if you and your employer have paid SS taxes over the years, you are eligible for Disability Insurance Benefits.

But be careful with payments from a business you own or once owned. SSA may question the nature of the payment and attempt to claim that the payment is a fee for services and assume that you are working. So if you are working, you are no longer disabled and SSA may terminate your benefit.

If the LLC withholds taxes from the royalty payment (especially SS taxes) there can be a problem.

It's best to get a statment from the LLC as to the nature of the payment - such as a cover letter enclosing the royalty check.

However, if you are not eligible for DIB because you have not worked or not worked much, you may be receiving SSI. SSI is a needs-based benefit and assets and income are issues which will effect your benefits.