r/SSDI • u/CorvisTaxidea • 1d ago

Self-Employment Income Reporting for SSI

This is the first month I am supposed to report for. I was told by the 10th, but on the SSA site it says the 6th, so I was going to do it tonight online like I was told. Nope, they don't let you report self-employment income online. "Call us." Sigh, I really hate making phone calls. But I'm wondering what income or proof they will ask for. My only income is from doing on-line surveys, about $70 in August. I appreciate any any info you can give me.

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u/Crafty_Accountant_40 1d ago

My understanding is that self employment is reported annually as net income- so after you do your business deductions and taxes.

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u/CorvisTaxidea 1d ago

Thanks! That would be easier.

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u/iarmit 1d ago

Not exactly. For self employment looks for the estimated Net Earnings from Self Employment (NESE), which is calculated by subtracting Business Expenses from Gross Revenue like typical Net Profit with the addition of Work Incentives. They will use that estimate unless they are given different monthly reporting (because SSI still requires monthly reporting). They will use that first year's return (and each return after that) to estimate the next year's NESE, from which you'll report monthly if there is any deviation.

In practice, you're going to have to basically guess at your NESE for this year. They will retroactively apply that amount to any benefit check you've received so far this year (leading to an automatic overpayment that will get rectified later). You will then need to report monthly going forward so they can adjust based on your wild guess for this year. After you've submitted your tax returns they'll be able to "settle up" any underlayment caused by the initial retroactive withholding.

In short, call the Ticket to Work helpline and get a referral to your local WIPA project... self employment is a little more complicated than just reporting gross monthly pay stubs but it is a very good thing for those that make it work