SSDI & 1099-Misc earning

[AZ-Tax]

Upon looking at past SSDI threads, does not seem to get into the question of how much a SSDI recepient (non blind) can earn per month. I did a quick search and the monthly amt of $1010 appears as the max. The 1099-misc would be reported on line 21 form 1040 depending on how much the SSDI recepient earned. Would the 1099-misc income considered to be SE earning since no Sch C will be filed? If so then the $400 SE requirement comes into play and if not, the HOH, under age 65 of $12500 for 2012 comes into play TTB 1-2 chart.

[Gary2]

If by SSDI you mean Social Security Disability Income, it's not taxable and there won't be a 1099 for it. If you mean other income by someone collecting SSDI, then I don't see how the SSDI would be relevant to the way the other income is reported. I'm guessing the source of the other income is related to being disabled, but that's not enough info to know how to report it. What is the person doing to get the income, and how is the income determined?

Oops, correction: Yes, SSDI is potentially taxable, and reported on an SSA-1099. That's what I get for reading and writing on my iPod when I should have been doing real housework.

[appelman]

Do you mean SSDI or SSI?

SSDI is considered social security income and treated as such. It is reported on an SSA-1099. SSI (Supplemental Security Income) is not reported at all and is non-taxable.

[dtlee]

SSDI is considered social security income and treated as such. It is reported on an SSA-1099. SSI (Supplemental Security Income) is not reported at all and is non-taxable.

I agree.

The taxability of SSDI (as opposed to SSI) is indistinguishable from the taxability of Social Security Retirement Benefits.

Relative to the original question, if this is an employee, a W-2 would be appropriate. If it is for self-employment income, it should be treated like any other self-employment income. I believe that Net Income from self-employment is used for the Substantial Gainful Activity rules. As I recall, recipients are periodically asked for details as to how the income is earned (on a month-to month basis). In addition to the business expensese, they will also be allowed to reduce this income by any impairment-related work expenses to determine if they have exceeded the Substantial Gainful Activity amounts.

For a tax return, you would report the income based on the rules

If it is truly miscellaneous income, you might put it on Line 21.

[S T]

If you do some research for SSDI through the Social Security System - apparently there is a an approximate 9 month Trial Period on Earnings before you are no longer eligible for SSDI - I did have a client on SSDI after hip replacement and SSA did allow him to collect his SSDI plus work during a period of time, then he was taken off of the SSDI program. http://ssa-custhelp.ssa.gov/app/answ...0and%20working

Agree- in the fact that if SSDI reported on Form SSA 1099 it is treated as any other Social Security Benefit and can be taxable depending on other income reported.

If SSI - Supplemental Social Security Income through a different program for people have limited income - it is not reported and non taxable, generally speaking these recipients would not be required to file a tax return - and if they are or do - it more than likely would jeopardize their SSI Benefit.

This might assist you in determinig which benefit http://ssa-custhelp.ssa.gov/app/answ...ssi-disability and http://ssa-custhelp.ssa.gov/app/answ...i%20disability More at the SSA.gov website

SSDI is part of the Social Security System regardless of retirement age where SSI is another program not necessarily financed through Social Security System and the client has limited income and resources not connected with any prior "credits" paid into the Social Security System.

Sandy

[AZ-Tax]

I am referring to Social Security Disability Income

I am referring to Social Security Disability Income and the additional income would come from managing properties via 1099-misc. No SE exps involved.

[S T]

Would not Mgmt Fees for Properties be reported on a Sched C and subject to SE - therefore earned income??

I have a few taxpayers that manage some small properties and receive a Mgmt Fee and I usually will report on a Schedule C?

Sandy

[Gary2]

I am referring to Social Security Disability Income and the additional income would come from managing properties via 1099-misc. No SE exps involved.

Depending on details, managing properties could well be a Schedule C activity.

[S T]

Gary - Can you elaborate on what details??? would preclude this not being a Schedule C Activity - as a property mgr??

Depending on details, managing properties could well be a Schedule C activity.

Sandy

[Gary2]

Gary - Can you elaborate on what details??? would preclude this not being a Schedule C Activity - as a property mgr??

The details are on what being a "property manager" means. It's not as though there's an official definition, so you go through the usual determination of whether or not an activity is a business. Usually it would be, but sometimes "property manager" winds up meaning the one tenant in a triple-decker who has the landlord's unlisted phone number.

Or to put it another way, you're asking me to speculate on what may or may not cause this to be treated as either Schedule C or line 21, but that's backwards. It's not my job to speculate on the possibilities. It's the job of the person doing the tax return to get enough of a job description, beyond the label "property manager", to make the proper determination.