Ask Larry

Will The Income I Receive As A Foster Parent Affect My Disability Payments?

If I get aprove for disability .and why I was waiting to get approved I'm also a foster parent would that affect me from getting my back payment money because I was a foster parent getting income.

Hi. If what you've applied for is Supplemental Security Income (SSI) disability, then any kind of income that you receive could potentially affect your eligibility for benefits. But, if you've applied for Social Security disability (SSDI) benefits then only earned income could potentially affect your eligibility.

Payments received by a foster parent would only be classified as earned income if they're considered wages or self-employment income. My expertise is limited to Social Security benefits so I don't know whether or not the foster care payments you refer to would be considered as wages or self-employment. You should probably check with the agency that's paying you to find out how the payments are classified for tax purposes.

Best, Jerry

Posted: 
Sep 1 2021 - 6:14pm
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