I went on SSI in 2017 after being diagnosed with absense seizures. 5 years later I am retested and notified that I was misdiagnosed. I purchased a small motel 3 years ago and have staff for daily upkeep. I do not receive income thru payroll or salary but have a net income for the business which is reported . H& R has been doing my taxs which includes net thru corporation and SSI payments. Should I do anything?
Hi. Yes, it certainly sounds like you need to tell Social Security about your motel operation. Any effect that operating the motel might have on your disability benefits depends on whether you're drawing Social Security disability (SSDI) or Supplemental Security Income (SSI), and the amount of income you receive from the business.
Any profits you make from the business could affect your benefits even if you leave the profits in the corporation rather than paying them out to yourself in the form of salary or dividends. And, any time that you devote to the business could count toward your trial work period (TWP) if what you're receiving is SSDI. For more information about working while receiving disability benefits, refer to the following Social Security publication: https://www.ssa.gov/pubs/EN-05-10095.pdf.
Best, Jerry