What is the Application Process for Social Security Disability and SSI?
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Common Mistakes after Receiving a Denial of Social Security Disability or SSI Benefits
How to File for Disability - Tips for Filing
If You Get Approved For SSDI Will You Also Get Medicare?
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Social Security Disability SSI Criteria and the Evaluation Process
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Social Security Disability SSI and Fibromyalgia
Social Security Disability SSI and Degenerative Disc Disease
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Answers to questions about SSD and SSI disability
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Social Security Disability Status
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Social Security Disability, SSI Disability - Terms, Definitions, Concepts
Social Security Disability - What is considered earned income versus unearned income according to the SSA?
How to prove you are disabled
and win disability benefits
I’m a 41 year old veteran, I receive Social Security Disability, and since I have major troubles working for others at several different jobs outside the home. I wanted to spend a 2-3 hours per week "daytrading/short-term trading" stocks in my brokerage account where I could have some capital gains/investment gains to assist paying the utility bills. Say my net gains per year could be $5,000, $10,000, $20,000, or $30,000+ trading stocks for myself from home. Could these trading gains (profit-minus expenses) count as "earned income" or are the gains "unearned income"?
I read online that capital gains and investments are not considered as earned income for those who receive social security disability. “Social Security excludes government benefits and investments as earned income. Interest, capital gains, pensions and annuities do not count as earned income.
One tax attorney told me: "Here is the general rule, passive income is not counted as earned income. Investment income is generally considered as passive". I think it most likely that day trading for yourself, and yourself only, would not be counted as earned" income for social security disability insurance benefits purposes. I can call and pay you a $35 consult fee on my debit card if you can email me the answers to my questions.
There's no charge, of course.
The answer to your question is simple. Unearned income through stock investment does not count as earned income against your Social Security disability. If you are receiving SSI or Supplemental Security Income disability, your unearned income may affect your eligibility to the program because it is based on need rather than insured status like Social Security disability.
If you are receiving Social Security disability only, your monthly benefits will not be affected by your capital gains from stock investments.
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Individual Questions and Answers
SSD and SSI are Federal Programs
The title II Social Security Disability and title 16 SSI Disability programs operate under federal guidelines and, therefore, the program requirements--medical and non-medical--apply to all states:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Recent approval and denial statistics for various states can be viewed here:
Social Security Disability, SSI Approval and Denial Statistics by state
Special Section: Disability Lawyers and unnecessary claim denials