I am a host home provider for two single adults that are disabled am I claiming income under my business name and it i don’t pay taxes because it’s a foster care thing.
Am I allowed to apply for disability? And how would this affect the income or the amount that I would receive

Hi. Yes. Anyone can apply for benefits from Social Security, regardless of whether or not they are actually eligible for benefits. Social Security must then make a determination as to whether or not the person actually qualifies for benefits.

The only type of income that might prevent you from qualifying for Social Security disability (SSDI) benefits is earned income. There's no limit on the amount of unearned income that a person can receive and still potentially be able to qualify for SSDI benefits.

If a person is working for wages or is self-employed, their earned income can prevent them from being able to qualify for SSDI benefits if their earnings average above the amount that Social Security considers to be substantial gainful activity (SGA). The monthly amount of earned income that Social Security considers to be substantial gainful activity (SGA) in 2023 is any amount over $1470 for non-blind individuals, or over $2460 for blind individuals.

Foster care payments typically wouldn't be categorized as earned income. However, if you operate a business and if the net earnings from your business are subject to self-employment taxes, then that income would be classified as earned income for SGA purposes. So, whether or not you might be able to qualify for SSDI benefits depends on whether or not you have any earned income, and if so how much.

No matter what, though, it doesn't cost anything to apply for Social Security benefits. So, if you believe that you're disabled, you should probably go ahead and file an application for benefits from Social Security. They will then make of formal determination of whether or not you qualify for benefits.

Best, Jerry