I receive disability benefits. With a 1099 how much money can I make a month? I understand that I can't make over 1350 a month but with a 1099 is this still true? I take care of my elderly mother in law and need the extra income to do so.

Hi. The monthly earnings amount that Social Security considers to be 'substantial gainful activity' (SGA) in 2022 is $1350, but that will increase to $1470 in 2023. If you get a 1099 for your work as opposed to a W-2 form, then you're likely considered as being self-employed. The SGA limit is basically the same for self-employed individuals as it is for employed individuals, but when self-employment is involved, Social Security also considers factors other than the amount of a person's remuneration when evaluating SGA.

There are actually 3 separate tests applied by Social Security when determining whether or not a self-employed person's work is SGA (https://secure.ssa.gov/apps10/poms.nsf/lnx/0410510010). The first test is whether or not their income is substantial. Substantial income would be any amount over the SGA limits listed above. Even if a self-employed person's income is below SGA levels, though, their work could still be considered as SGA if their work is either comparable to the work performed by an unimpaired worker, or if the work activity they perform is reasonably worth more than the SGA earnings limit even if they are paid less than that amount.

Based on my experience it is rare for Social Security to determine that a self-employed person's work is SGA if their earnings average below the SGA limits. About the only times that income below SGA levels is considered as SGA is if the person is in control of what they are paid, or if their income is below SGA levels due to market conditions.

For example, if a person creates a corporation and works full-time but pays themselves less than SGA level, that could still be considered as SGA. Or, if a self-employed farmer or real estate agent, for example, perform all of the same duties as an unimpaired person in their vocation but their net profits are below SGA level because agricultural prices are bad or because of a depressed housing market, then Social Security could still say that their work is SGA.

The bottom line is that if you receive a 1099 for your work and if you aren't in a position to control the amount you are paid, then it's unlikely that Social Security would consider your work as SGA unless your net self employment income exceeds SGA levels.

Best, Jerry