Hi! I'm currently receiving disability social security benefits, but recently had to house my mom due to a problem with her house. The insurance company paid us to house her. I received a 1099 and my tax person told me I can loose all my benefits. Is that true?

Hi,

I'm not an expert on tax laws, but the only way that 1099 income could affect your Social Security disability (SSDI) benefits is if it must be reported as self-employment income and you pay self-employment taxes. From your description it doesn't sound to me like it would be self-employment income, but I guess that could depend on the exact circumstances. You may want to discuss this with your tax person to see if he or she believes that your 1099 represents self-employment income, and if so why.

You don't mention how much income you received, but even if you have self-employment income it normally wouldn't cause your SSDI benefits to stop unless it was more than $1,220 per month (https://www.ssa.gov/pubs/EN-05-10095.pdf). That was the amount considered to be substantial gainful activity (SGA) by Social Security in 2019.

Best, Jerry