Today, we are going to talk about how reported income affects your disability case. This can actually be a very sticky situation in Social Security disability cases. Here at Disability Associates, a disability law firm in Towson, MD, we are committed to guiding you through your Social Security disability case, especially when complexities such as reported income complicate your case.
How Reported Income Affects Your Disability Case
So, you have filed for Social Security disability and said that you are unable to work due to your physical or mental limitations for at least twelve months. Social Security gets information from the IRS about any income that has been reported to you. We have had instances where problems arose because of this. Sometimes, this is because clients have gone back to work without informing us. We can get that straightened out relatively quickly because if in fact you have gone back to work and you were not out of work for at least twelve months, then we would withdraw from your case.
However, the main problem we will be going over is this: A client will not go back to work, but will still have income reported because they filed a tax return where they reported some type of self-employment income. We have had instances where a client will say “I know I put that down, but I really didn’t work.” and they actually did get some money back from the IRS from their earned income tax credit. Now, this creates a very serious problem for your case.
If you have self-employment income, when you get to the hearing, the first thing the judge will want to know is “what kind of work have you been doing?” And now, you are in a position where you are under oath. If you tell the truth and tell the judge that you actually didn’t work, then that is what we would call fraud, and that’s not a good thing. On the other hand, if you lie, you’re under oath so you have now committed perjury.
You can see that it is a no-win situation, which is why it is important to understand that Social Security has access to information that has been provided to the IRS either by you or, if you have been working, by your employer. Don’t ever try to get around that because it is just not worth it. If you are able to go back to work, go back to work. You are going to earn much more by working than you ever will through Social Security disability benefits. If you aren’t able to work, don’t participate in any type of scheme or fraud, because you will get caught and pay the price.
About Disability Associates
Our team at Disability Associates views our clients as more than just another case. We build genuine relationships with each and every one of our clients to ensure that they are comfortable during this stressful time. We value honesty, good communication, and compassion, and implement these values with every client we have. In building these relationships, our clients trust that we will provide competent representation and will do our best to get them the Social Security benefits they deserve.